When the Bank Says No — How One Business Unlocked €20,000 in Working Capital

Some of the best businesses I have helped over the years did not have perfect paperwork. And that is completely fine.

A few weeks ago, a client came to me after their bank turned them down for a small working capital loan. Their accounts were behind and the numbers did not look as neat as the bank wanted. But the business itself was strong. The owner worked hard, the vehicle was nearly paid off, and cash flow just needed a bit of support.

Instead of giving up, we looked at things differently.

I spoke with one of our asset finance partners and reviewed what the business already owned. In this case, they had a vehicle with plenty of equity. Within days, we arranged a refinance that released €20,000 in cash back into the business. It was straightforward, fast, and made a real difference.

That money gave them space to pay suppliers, manage running costs, and focus on getting back to growth.

Every week I meet business owners who have been declined by their bank for reasons that do not tell the full story. Sometimes it is because of timing. Sometimes it is just a tick-box issue. But behind those numbers there is almost always a good business trying to move forward.

That is why I started BusinessLoans.ie; to help real business owners find funding that fits their situation, not just their balance sheet.

If your bank has said no or you are unsure what options are available, reach out. Often the answer is already within your business. You just need the right partner to help you unlock it.

Call the BusinessLoans.ie team on 01 55 636 55 or APPLY HERE.

Recent client: Flexible loan for flooring business

BusinessLoans.ie recently helped a flooring business with a flexible repayment loan. They had big expansion plans and invested a lot of their working capital to get into the UK market. They already were making use of invoice finance and our partner credit team saw more room for credit based on their ongoing and upcoming sales. They were happy to get a €250,000 facility over 12 months, with a view to getting a second facility for the same amount during that term. The loan has a flexible repayment that works in tune with cash flow and stays on target to be repaid in the agreed time. This was especially useful to the client who sometimes had irregular cash flow, in between projects.

Could this loan work for you? If your business is trading at least 9 months and is averaging at least €20,000 sales a month then enquire now.

Does your business want a fast finance quote? Call us now on 01 55 636 55 or email hello@businessloans.ie.

Business loans forecasting for 2024

Forecasting your ability to secure cash flow loans and asset finance is crucial for effective financial planning for 2024. Here are some steps and considerations to help you with this process:

1. Assess Current Financial Health:

• Review your current financial statements, including income statements, balance sheets, and cash flow statements.

• Identify key financial ratios to understand your business's liquidity, profitability, and solvency.

2. Cash Flow Projections:

• Create detailed cash flow projections for the upcoming year. Estimate your monthly inflows and outflows.

• Consider different scenarios, such as best-case and worst-case, to account for uncertainties.

3. Loan Requirements:

• Clearly define the purpose of the loans and asset finance you are seeking. Whether it's for working capital, equipment purchase, or expansion, having a specific plan will strengthen your loan application.

• Understand the amount you need and the repayment terms you can comfortably manage.

4. Creditworthiness:

• Regularly monitor and maintain a good business credit score. Lenders often use this to evaluate your creditworthiness.

• Address any outstanding debts or issues that could negatively impact your credit score.

5. Relationships with Lenders:

• Strengthen your relationship with existing lenders. If you have a good history with them, they may be more willing to provide financing.

• Explore local banks and financial institutions, as they may have a better understanding of your business environment.

6. Asset Valuation:

• If seeking asset finance, provide accurate valuations for the assets you intend to finance. This adds credibility to your application.

7. Financial Documentation:

• Ensure your financial documentation is in order. Lenders will likely request financial statements, tax returns, and other relevant documents.

8. Government Support Programs:

• Explore any government support programs or grants available for small businesses in Ireland. These can provide additional financial assistance.

9. Professional Advice:

• Consult with a financial adviser or accountant to ensure your financial projections are realistic and well-supported.

10. Stay Informed:

• Keep an eye on economic and industry trends. Changes in the business environment can impact your ability to secure financing.

11. Contingency Planning:

• Have a contingency plan in case your initial financing options do not materialize as expected.

12. Continuous Monitoring:

• Regularly review and adjust your forecasts based on actual performance. This allows for timely adjustments and better decision-making.

By carefully considering these factors, you'll be better positioned to forecast your ability to secure cash flow loans and asset finance for your small business in Ireland. Remember that financial planning is an iterative process, and staying proactive and informed will contribute to your success. BusinessLoans.ie can reach out to lenders to see how much credit might be available. Call us today on 01 55 636 55 or email hello@businessloans.ie.

Recent deal: Dublin scaffolding firm gets €300k equipment loan

BusinessLoans.ie is celebrating another successful loan. Our client was a large Dublin scaffolding business. They are very busy and experiencing good year-on-year growth. A purchase of €300,000 of scaffolding was required to service more contracts. Banks had been unhelpful. They also tried non-bank asset finance companies but scaffolding is considered unsuitable for hire purchase & leasing.

BusinessLoans.ie identified a non-bank lender who could quote them unsecured based on the strong performance of their accounts & bank statements. They were approved & funded quickly, at low rate on the €300,000 over a 3 year term. The business owner was pleased there was no early repayment penalty. If, during term, the company has excess cash reserves they can settle the loan and save on remaining interest.

Does your business want a fast finance quote? Call the Business Loans team on 01 55 636 55 or email hello@businessloans.ie.

Rupert Hogan, MD BusinessLoans.ie talks finance on Dream:Reality podcast

Rupert Hogan, MD of BusinessLoans.ie had the pleasure of talking finance with Alison McMurtrie on Dream:Reality, the podcast providing practical tips for business owners & the challenges they face.

Alison runs Idunn Consulting and can help your business perform better.

Six tips for getting business loans from banks in 2022

Speaking with your bank about business loans can be tough as we continue with pandemic issues in 2022. It’s best to get all your ducks in a row beforehand. In the words Abraham Lincoln; “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Here are some quick tips that may help:

1. Get expert advice. Your accountant or an experienced financial adviser will be useful here. If budget is a concern there are supports from your Local Enterprise Office, Enterprise Ireland & more.

2. Assess where your business is currently. Weigh up the strengths, weaknesses, opportunities and threats. Many businesses are pivoting completely or you may just need to focus on a particular area that’s working right now.

3. Be frank with your bank. When you speak with a bank in black & white terms, more focused on the facts & figures you should find them most receptive.

4 . Fail to plan; plan to fail. Write it down in a budget with a clear, concise plan of action detailing realistic forecasts & projections. If there are many variables in your forecasting consider presenting a best-case & worst-case scenario.

5. Hard talk. Be ready for your conversation with the bank & for difficult questions. Have your answers prepared.

6. Consider alternative options. If you have tried your best with the bank but they’re not on board there are alternative business finance options that may work.

The BusinessLoans.ie view is to engage with your accountant, advisers or government agencies & prepare. If the bank declines you don’t give up. Ireland has many alternative business finance options. We can assist with fast finance quotes & we’re here for you 7 days. Email hello@businessloans.ie or call 01 55 636 55.

Recent Deal: €250,000 Funding for Agri Machinery Manufacturer

BusinessLoans.ie recently arranged €250,000 in funding for an Irish agricultural machinery manufacturer.

The business had experienced a period of margin pressure due to rising input costs and supply chain delays. While turnover remained solid, working capital had tightened as stock costs increased and customer payment cycles stretched.

They were frustrated by the volume of documentation and delays involved in a traditional bank application and wanted to explore faster, more flexible alternatives.

We sourced a competitive funding solution with a non-bank lender structured over three years. The facility was approved quickly, offered a strong rate relative to risk, and was structured without a personal guarantee or early settlement penalty.

The funding provided breathing space, stabilised working capital and allowed the business to focus on production and order fulfilment rather than funding concerns.

If your business is experiencing cash flow pressure, margin squeeze or growth-related funding needs, it is worth exploring what options are available.

For a fast, no-obligation finance quote, contact the BusinessLoans.ie team:
Email hello@businessloans.ie
Call 01 55 636 55

Recent deal: A tile retailer in need of stock

BusinessLoans.ie is celebrating helping another client. With the global issues in shipping, it’s put a strain on Irish businesses keeping enough stock in their warehouses. This was the same case for a tile retailer whose working capital was tied up in shipping containers in transit. They needed to make bigger orders and they didn’t have access to acceptable credit terms from their suppliers. While this business had some issues on their accounts as a result of the pandemic, they were enjoying better margins on their product with the general price increase in construction materials.

A finance quote opportunity was identified because they had a volume of retail card sales. Our lending partner secured over €40,000 in stocking finance for them with an option to top them up again in the coming months. They were happy. Does your business need a loan quote? Talk to us on 01 55 636 55 or email hello@businessloans.ie.

Getting well capitalised before pandemic supports end

As we leave the summer months behind many business owners will have more time to plan for their business initiatives ahead. We are also getting to the stage where the Government will be phasing out supports. If you forecast that this could hit your cash flow and may need some working capital finance there are still some good options out there such as the Covid-19 Credit Guarantee Scheme. This can give you working capital financing, invoice financing, hire purchase, leasing and more. All at low rates and without personal guarantees. It’s always a good idea to do a health check on your business before seeking additional financing. Your accountant will be invaluable here. If financing is the right choice, BusinessLoans.ie is here to organise fast finance quotes 7 days. Email hello@businessloans.ie or call 01 55 636 55.

10 things to know about the Covid-19 Credit Guarantee Scheme

The Irish Government, through the Strategic Banking Corporation of Ireland (SBCI) has given lenders access to cheaper funds to pass on to Irish business borrowers. The State is taking on 80% of the risk and the lender only 20%.

1. Generally no personal guarantees need to be signed by company directors for peace of mind.

2. Unsecured loans can be from €10,000 to €250,000.

3. Secured loans can be up to €1 million.

4. Terms up to 5 and a half years are available.

5. It’s not just banks who have access to the scheme. Agile alternative lenders do too.

6. Businesses can get new or used vehicles, machines and equipment on asset finance.

7. Businesses can use existing assets as collateral for a working capital loan.

8. Key eligibility criteria is a hit of at least 15% in turnover or profit due to covid.

9. There was €2 billion allocated and it’s due to end when the funds run out or at the end of 2021, whichever comes first.

10. BusinessLoans.ie has access to pillar bank quotes and non-bank quotes so you have more choice and the best deals.

BusinessLoans.ie can get your quotes organised. It costs nothing to get your quote built and see if your business is approved and at what rate. Often we can get you multiple quotes to compare with your accountant or financial advisor. Or if you’re still planning your finance requirements the Local Enterprise Office can arrange a free mentor. For bigger companies Enterprise Ireland has a Covid 19 Business Financial Planning Grant worth €5,000. We’re here for you 7 days on 01 55 636 55.