Introduction: Why are 70% of funding applications rejected?

In our experience with dozens of banks in the Kingdom of Saudi Arabia and the Sultanate of Oman, the vast majority of funding applications are not rejected due to a weak idea, but due to a weak presentation and preparation. A credit analyst reads hundreds of files annually and does not have the luxury of intuition — they are looking for clear signals of feasibility and risk management.

  • 70% is the rate of applications rejected in the first stage

  • 3x improvement in acceptance chances with professional Feasibility Study

  • 24% average reduction in funding costs when preparing a strong file

  • 12 days average processing time for well-prepared files

Guide Summary

The bank does not fund ideas; it funds the ability to repay, proven by numbers. The goal of this guide is for you to come out with a business model that translates your idea into a convincing cash flow.

What is the bank actually looking for?

Behind every credit decision are five main pillars known as the 5C model: Character, Capacity, Capital, Collateral, and Conditions. Each one is transformed in the file into a document or a measurable number.

  • Character: SIMAH credit history, founder's record, tax and Zakat integrity.

  • Capacity: Operating cash flow and the project's ability to cover funding installments.

  • Capital: The owner's contribution from their own money (Skin in the game).

  • Collateral: Assets that the bank can rely on in case of default.

  • Conditions: Market status, sector, and regulatory risks.

Any project that cannot explain how it will pay the first installment within 90 days will not get approval, no matter how attractive its idea is.

Essential documents for the funding file

A strong file is not the thickest one, but the most organized. These documents are the minimum that any consultant who respects your file should request:

Document requirements by funding type

Financial model and project analytics

Dynamic Financial Model for a real estate development project in Riyadh — one of Maysar's files.

Do you need a bank-acceptable Feasibility Study?

We prepare Feasibility Studies that meet the requirements of the largest banks in Saudi Arabia and Oman, with a dynamic Financial Model and full sensitivity analysis.

How to build a fundable financial model?

A good financial model is not a colorful Excel sheet, but a digital story that the analyst can test themselves. Three indispensable layers:

1) Assumptions Layer

Every number in the model must be based on a verifiable source: contracts, supplier quotes, public authority statistics, or accredited sector reports. Assumptions with unknown sources completely undermine the credibility of the model.

2) Operations Layer

Revenue is built from the bottom up: Capacity × Occupancy Rate × Price. Expenses are accurately classified between fixed and variable to allow for break-even point analysis.

3) Outputs Layer

Income statement, balance sheet, and cash flows for five years + indicators of Net Present Value (NPV), Internal Rate of Return (IRR), and payback period. All must be interconnected with dynamic formulas.

Bank-approved financial model structure

Three interconnected layers: Assumptions → Operations → Outputs and Indicators.

Debt Service Coverage Ratio (DSCR)

The most important indicator the bank measures. The rule: DSCR must be ≥ 1.25 throughout the funding period. Any value lower means the project does not generate enough to cover the installment with a safety margin.

Comparison between major funding programs in the Gulf

General comparison — details may vary according to the latest updates from funding entities.

Get a free consultation to choose the most suitable funding program

Our team studies your sector and the size of your project, and suggests the best possible funding program before you apply to any bank.

Common mistakes that cost you funding

  1. Inflating projected revenues without realistic market support.

  2. Overlooking working capital and focusing all funding on setup only.

  3. Poor documentation of the management team and the absence of a backup plan in case of the founder's absence.

  4. Not building sensitivity scenarios (optimistic / neutral / pessimistic).

  5. Relying on one weak guarantee instead of diversifying sources of collateral.

Warning: Conflict between documents

The most common reason for rejecting technically ready files: conflicting numbers between the feasibility study, the financial model, and historical statements. Review every number three times.

Credit committee meeting

A credit committee evaluating a funding file — the decision is usually made in the first 8 minutes of the review.

Final readiness checklist before applying

  • ✓ Updated Feasibility Study no older than 6 months.

  • ✓ Dynamic Financial Model that opens in Excel and works without errors.

  • ✓ A two-page executive summary that answers: the idea, the market, the numbers, the demand.

  • ✓ Legal company structure is clear and supported by documents.

  • ✓ Professional CV for every member of the management team.

  • ✓ Accredited valuation for any real estate or movable collateral.

  • ✓ Letter of Intent (LOI) from a major client or supplier if available.

Full readiness checklist — PDF

A 47-item list we use internally before submitting any funding file for a client.

Contact a funding consultant directly via WhatsApp

Get a response within one business hour from a consultant specialized in private sector funding in the Gulf.