The Best Business Loans in Morocco

Compare the best options on the market and choose the one which best adapts to your day-to-day needs.

Further Below: Our Guide To Business Loans in Morocco, Everything you need to know.

Attijariwafa Bank

• Flexible loan limit depending on salary income
• Loan repayment period of up to 10 years
• Competitive interest rates of up to 7.6% p.a
• The fast online application process
• Excellent loan conditions
• Applicable to borrowers with income
• Requires collaterals for secured loans
• Offers loans for various purposes

Bank of Africa- BMCE Group

• Get a loan of up to MAD 250,000
• Offers a maximum loan tenure of 72 months
• Attractive interest rate of 4.29% p.a
• Fast online application process
• Does not allow transfer outside the country
• Simpler loan eligibility criteria
• Fast concession 
• It excludes loan processing fees

Arab Bank Morocco

• Applicants’ incomes determine the loan limit
• Fast and digital online application process
• Competitive and fluctuating interest rates
• Long repayment period of up to 120 months
• Offers a grace period of 90 days
• Offers a loan buyout facility
• Less strict requirements
• Excellent loan conditions
• Fast concessions

Business Loans in Morocco, All You Need To Know:

Stay tuned to learn everything there is to know about financing your company in Morocco. We give you all the information you need, such as important things to take into account before hiring a business credit, the greatest deals available right now, and how to choose one that will be most appropriate to your financial requirements.

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[UPDATE] What economic measures has the Government implemented for companies through covid-19?

The Moroccan government intervened immediately after the coronavirus pandemic began to offer protection for enterprises and companies from the negative economic impacts of the same. For even the tiniest firms to survive, the government came out to award grants, provide new standards governing the provision of grants and loans, and increase the availability of loans.

• The government set Business Intelligent Committee to analyze Moroccan economic stability and establish insulative measures to curb the pandemic effects.
• To relieve pressure on small enterprises during difficult economic times, the government even went so far as to reduce and delay tax repayments. All the penalties charged on late payment of government contributions were canceled until further communication. 
• The Central Bank of Morocco reduced the lending interest rates from 2.25% to 1.5% and 3.3 billion was furtherly released to fight the pandemic.
• A state guarantee fund was offered to create an additional line of credit for banks and other lending institutions.
• Businesses would face a little more lax eligibility requirements when taking out a loan. Moreover, the conditions of the loans were more attractive.
• The deadlines for clearing the registration and inheritance tax were postponed to January 2021 the conditions the same were favorable.
• Payment of road taxes for businesses was deferred for 4 months as well as the immovable withholding taxes.
• Individuals applying for startup and SME loans would receive tax incentives
• The government provided guarantees for business bank loans
• The government scrapped the regional City Tax for the whole of 2020.

Under the fulfillment of specific requirements, all license holders had the opportunity to have their authorizations extended. Thus, exporter authorization was granted to the holders without the need for customs auditions.

Distinguishing types of company profiles

For various business profiles, several business loans have been pre-selected. Regarding the terms of financing that they provide, each sort of loan is distinctive. Similarly, the company receiving the funding will need to meet specific criteria to be eligible for a specific loan type.

Let’s have a look at the different forms of businesses:

Companies

• Entrepreneurs: This is a business that is still hypothetical and most likely in the planning stage. A concept for a business is generated by the entrepreneur, who may then proceed to plan for it. The availability of finances will determine if this firm materializes.
• Start-ups: Entrepreneurs should take note of this kind of business. The company is already established and might be running. Their activities are still small and unpredictable, thus they may occasionally suffer losses or have low turnover. The business may just obtain a little amount of capital, but it is meant to guide its expansion.
• Consolidated companies: These businesses have a long history and are a little more secure than startups. They’ve achieved progress and more profits than losses. These businesses can obtain larger loans than start-ups because their income proves their capacity to pay them back.
• Large companies: These businesses engage in extensive operations on a local, regional, national, or international level. They generate enormous turnovers (in millions of euros), which makes them eligible for enormous loans. They include; Maroc Telecom, Akwa group, and Attijariwafa Bank among others.

Self-employed

• As legal entities: these refer to employees or professionals who own a business. They qualify for loans designed for individuals. Their businesses may be treated as either ‘start-ups’ or ‘consolidated companies’ depending on the profits realized.

• As natural persons: these are people without employment but have some form of income. They qualify for personal loans curated to finance specific projects such as financing a car or buying electric appliances.

Characteristics of business loans

Depending on the type of company profile and the type of credit we apply for, business loans have different characteristics. However, while we’re seeking the best financing available, our negotiating abilities will be put to use.

What then should you be on the lookout for in a business loan?

1. Cost. This is always the first consideration to make. You want a loan with attractive rates so that the loan can improve your financial status and make the repayment process easy. The cost of the loan depends on an entity, hence, be sure to consult different entities to compare the costs.
2. Amount. This depends on the purpose of the loan and the business profile. Moreover, the amount varies with an entity.
3. Purpose. Different businesses have different needs such as working capital, investments, consolidating debts, clearing arrears with our suppliers, importing goods, and collecting invoices among others.
4. Linkage. Especially in banks, financing always comes with related products such as insurance, business accounts, or other products of mandatory recruitment.
5. Repayment period. This may be longer or shorter depending on the type of credit and the entity providing the loan. Some lenders may give loans for 6 months while others for 120 months.
6. Grace period. This refers to a period when the lender allows the borrower to pause the loan repayment. This mostly happens in the initial stages of repayment.
7. Guarantee. These are normally attached to big loans where the lender will require “payment insurance” with a guarantee or collateral.
8. Speed. This is one of the most important factors to consider, depending on your financial needs. Some lenders take months to release the funds while others take days.
9. Repayment conditions. Entities set up different repayment conditions. While some may have us make monthly installments, others may have us pay all the finances (principal amount, accrued interests, and other charges) at the end of the repayment period.

Where to get business loans

The development of many non-bank lenders that create diverse financial products has been made possible by technological improvement. Due to the abundance of options, borrowers can choose the financing that best suits their needs. The choices that are currently open for us to consider when we require finance are listed below:

• Banks: They continue to have a significant presence in the lending industry. Banks are renowned for making large loans to large businesses. They may therefore have slower concessions, longer payback terms, attractive rates, and tight qualifying requirements. Nevertheless, some banks provide loans to SMEs with appealing terms.

• Companies and private capital lenders: Online applications are accepted, and loans are processed there as well. Therefore, the concessions are quick and easy. These loans have favorable terms that are comparable to and occasionally even better than those offered by banks.

• Alternative financing platforms for crowdlending: These are websites that connect an entrepreneur seeking money with a private investor. The decision to invest in the borrower’s business is entirely up to the investor. Once an investor chooses our organization, the loan processing will take place in no more than 48 hours.

Be sure to conduct a thorough financial audit before setting out for a particular loan.

Business loan conditions

Knowing that you require a loan and selecting the lender of your choice are the first steps; the next is deciding whether you are willing to comply with the lender’s requirements. These are the terms for business loans in Morocco that you’ll find:

• National registration: The Moroccan Law regulates financial markets and financial products offered by lenders. Entities will only offer to finance companies that have their fiscal headquarters in Belgium and are in compliance with the regulations of the Moroccan financial markets.
• Annual income: entities offering to finance will require us to provide documents showing the annual records of our company. This will prove to the entity that the company has been running and making certain profits at certain times.
• The seniority of the company: different entities require the business to be running for different numbers of years. Some may require 1 year while others require 5 years. This is an important requirement to meet since the financing depends on the solvency of the company.
• Credit history of the company: lenders will only want to offer to finance to companies with creditworthiness. In this way, the lender is assured of the borrower’s loyalty to repay the loan.

Entities have varying standards for the conditions mentioned. For instance, they might establish various annual income limits. 

Documents needed to get funding

Entities will require several documents that show the financial status of the company. 

Some of them include:

• VAT return from the previous year and the current year.
• Income tax return.
• Bank statement (if in another bank).
• An updated balance sheet of the company’s turnover.
• Proof of payment of Corporate Tax.

The entity may require you to send the documents online, via mail, through a courier, or physically drop them off at the entity’s office.

Other forms of financing for companies

1. Business credit lines

With business lines of credit, we are given a set sum of money that we can reserve and withdraw in small amounts as needed. With this sort of financing, we are responsible for paying back both the principal and interest that we have already incurred. This differs from loans where we must pay back the full amount borrowed.

2. Factoring

This mostly suits the self-employed and SMEs where the lender comes in to pay our invoices and clear with the suppliers. We’ll be left paying back the amount used to pay for the invoices and the interest charged. Our terms of payment and conditions depend on the entity.

3. P2B or crowdlending loans

A borrower is connected to a private investor through crowdlending platforms, who decides whether or not to fund our company. In Morocco, there are several crowd-lending platforms, and the services we receive vary depending on the platform we use. The lending institution will determine the terms of its goods and the loan amount we receive.

4. Confirming

This is intended for suppliers who need cash flow for their company. With the help of the loan, the supplier can gather orders before making deliveries to maintain liquidity; after making the deliveries, he will pay back the money that the lending institution advanced to him.

5. Loans with mortgage guarantee

These are loans only granted to businesses that can provide a property that we can use as a guarantee of payment. These loans may have longer analysis and concessions than other loan types because of the appraisal process involved.

Products to invest in our company

1. Equity crowdfunding

These are internet platforms created by technological advancements, which allow both experts and individual investors to fund our initiative. Since investors receive a portion of our company in exchange for their investment, we never incur debt. Additionally, they receive a portion of the company’s revenues.

2. Business Angels

Business angels are similar to equity crowdfunding. However, for business angels, the company decides whether to invest in our company or not. Instead of the private investor deciding as an individual.

As you make this decision, bear in mind that the investor will share in the ownership of the company. Business angels offer to finance big business projects.

3. 3F (Friends, Family, Fools)

The 3 F’s, Friends, Family, and Fools offer to finance our business. The conditions of each type of financing are set by the lenders.

Aid for the financing of companies

1. Capitalization of unemployment

This involves the collection of all the unemployment benefits we are eligible for. Financing is only provided for the self-employed who wish to start up a business.

2. Subsidies: National, regional, or local

The government provides multiple subsidies, to the credit facilities offered making it cheaper to fund other projects through personal loans.

About this page, our methodology

What this page is for: We are an informational website that focuses on giving you access to a variety of financial product information. Therefore, before applying for a loan, we coach you on how to compare several economic elements. We also give you the analytical abilities necessary to become financially solvent.

Source: The information regarding consumer credits in Morocco and how they are regulated is drawn from The Moroccan Capital  Markets Authority, The Central Bank of Morocco among other reference portals.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About FUNDGECKO: We are a team of professionals committed to helping you make straightforward financial decisions affecting your financial needs. We offer trustworthy and validated information that enables you to contrast the best financial options available. In addition, we offer simpler procedures for choosing the choice that best suits your needs and peculiarities.

Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.