BusinessLoans.ie Features in the Sage Ireland Blog!

Rupert Hogan, MD of BusinessLoans.ie was interviewed by journalist Róisin Killeen for the Sage Ireland blog. Over three million customers are managing accounting, finances, payroll, payments, operations and people with Sage Business Cloud. They also provide the best information resources to ensure business owners in Ireland stay ahead.

Rupert Hogan gave insights on key financing concerns for Irish entrepreneurs in the post “Need a small business loan? How to successfully apply for one and covered the following topics:

  • Do you need a loan?

  • Grant versus a loan?

  • Where can you source a loan?

  • Is a credit score important?

  • How much can you borrow?

  • How long will the loan term be?

  • What documentation do you typically need?

  • Should you get professional advice?

Read the full post for finance tips such as why “it’s better to be over-capitalised than under-capitalised and it is wise to have a buffer of working capital to help you during difficult times.” Alternatively, if you’re ready to discuss loan quote options that can help your business survive or thrive, we’re here for you 7 days by email at hello@businessloans.ie or call 01 55 636 55.

Business Loans for Retail & Hospitality Exiting Lockdown

Now that we’re exiting Lockdown 2.0 and your business can reopen, there’s a good chance your working capital levels have been depleted. You may need a business loan for cash flow, hiring new staff, covid alterations, equipment or fit-outs. If your business bank statements are imperfect, showing low repayment capacity or have many missed payments you may have been declined the government-backed loans or you might just need approval fast. So what can you do? The good news is, there are a number of alternative finance options in Ireland that may work.

Merchant Cash Advance

If your business uses a card machine then a merchant cash advance is a fast finance solution. Every month you should receive a merchant services statement. The application and approval process is quick. You will need to get 12 months merchant statements & 3 months business bank statements to get approval feedback. So you may be thinking, how much can my business qualify for? It depends on the repayment capacity indicated by looking at the bank statements, as well as the turnover you’re doing monthly on the card machine. The credit team will look at how you were trading before covid as well as now and hopefully make a loan offer. A good rule of thumb would be expect an offer to be the equivalent to one month’s turnover, pre-lockdown drop-off.

How the loan is repaid is different than a typical loan. The finance company sets up a repayment of a small percentage of the daily income of the card machine. It could look something like 7%. That means if you took in €1000 one day they would take €70 towards the loan repayment. The credit teams are aiming to set a percentage that gets the loan repaid in around a year. They are often happy to renew the facility with you again in future once they see it’s being paid down. This type of repayment shows flexibility for times when business is quiet. The cost of finance is often comparable to rates for overdraft facilities many SMEs are quoted for.

Simple Unsecured Loans

If you have 2 years accounts (both in profit), 6 months bank statements (a dip in turnover is OK during Covid times but not too many missed payments and showing repayment capacity) & an up to date tax clearance certificate you could qualify for a simple unsecured loan from alternative lenders. This means you can get a fast quote, usually within 24 hours. The rate will generally be from 6% to 12% (the credit team will grade it A, B, C or D depending on the strength of the numbers they have crunched).

Asset Finance

If you need new items to help your business trade there are a number of options. We know of options for financing items such as big outdoor shelters, food trucks & commercial kitchen equipment. You would be surprised the amount of items that go in to a refurb or fit-out that can be financed.

We’re always happy to answer any questions you have & organise fast finance quotes. Call us now on 015563655 Always seek financial advice from your accountant or the Local Enterprise Office. Or we have professionals in our network we can introduce you to.

Business Loans Covid Restart Hotel Retail