Business loans around tax time

It’s that time of the year again when your accountant is hard to reach. You have accounts to file, you’re trying hard to get all the information together so your tax is paid correctly and on time. Not everyone is on top of their finances and at this time of year working capital can be tight.

Most business owners don’t have the luxury of a generous bank overdraft they can call on when needed. The good news is there are a few options out there.

  1. Peer to peer finance is there for working capital. You just need to have your 2 years accounts, 6 months bank statements and the tax clearance certificate. So while it won’t help if you can’t get your tax up to date, it will give you more working capital if you’re tight after settling your tax bill.

  2. Cash advance is available if your business takes significant revenue through the card machine. It’s OK to use the facility to settle your tax bill.

  3. Asset finance might be an option if you have assets that you own. You could leverage working capital from some lenders.

If you need to come up with ideas to fix up the tax bill, we might just be able to help. Call 01 55 636 55

Financing options for Irish business owners

As a small-business owner, you should understand the financing options available to you to help grow your company. Many new small business owners have difficulty accessing capital through traditional banks to start or grow their firms. Small business lending companies can help to provide financing even though they have challenged credit. There will be a premium charged through interest rates and other fees for access to capital but being granted necessary funding is most important to owners and lenders have to balance risk with reward. Many small businesses have begun seeking alternative finance to meet their smaller financing needs. Peer to peer lending is becoming more commonly used by small firms to finance projects that will help their companies grow.

So you may ask, why don’t I just use my cash flow to fund the business? When you fund a business yourself, it can be wonderful if things work out, but disastrous if they don’t. If you don’t get outside funding, those growth opportunities are limited by the size of your own funds and what your business produces in cash flow. Slow, steady organic growth may be fine for some businesses, but for others, particularly in fast-moving areas like technology, it can mean ceding the advantage to your competitors.

Bank lending is still tight. Research shows that for the first quarter of the year, gross new lending only increased 2.7 per cent over the previous 12 months, driven by primary industries (11 per cent) and hotels and restaurants (3.7 per cent), with declines in other sectors, according to SME market report from Central Bank.  According to the research conducted by the Red C 60% of SMEs were using personal funds to invest in growth in their business. 

It’s important to note that, while interest rates have fallen dramatically since 2008, the average revolving credit rate has actually risen. Alternative lenders have been able to leverage their superior operating efficiency to offer more attractive pricing to consumer and small business borrowers while also delivering a superior service experience.

Here are three major benefits of alternative financing that you need to know, and that banks simply can’t deliver:

  1. Banks take several weeks — or sometimes several months — to review loan applications.

  2. There are many other factors to consider, and credit scores are just one piece of the puzzle. That’s why we routinely approve borrowers who have impaired or bad credit.

  3. Alternative business loans fund quickly, which is one of their biggest advantages. In many cases, you’ll hear back from your lender within 24 hours, and get your loan funded within 48. This is an ideal solution if your business needs cash quickly to take advantage of a business opportunity or get over a short-term cash flow hump.

The flexible and affordable funding solution you want, need and deserve is via alternative finance. Businessloans.ie is here to help you navigate alternative finance to get the best finance deal for your business.

3 Things You Can Do to Improve Your Chances of Loan Approval

1. Act before your bank statements get too tight.

2. Keep a steady minimum level of cash in the account. Don't be caught out by the number of days a in a month that a direct debit would fail. Having a bank overdraft facility in place is not a bad thing because it can show more affordability to make loan repayments.

3. Directors; don't pay yourselves excessively. It sends out the wrong signal to your lenders.

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businessloans.ie - WHAT WE DO.

If you're a business owner your usual port of call when you need finance is to look to your bank. Yet, even as we hear positive signals in the media about the Irish economy, the stock of SME credit available in Q1 2017 was down 8.2% compared with Q1 2016. Small and micro-sized companies are worst hit by the increased bank rejection. Even if the bank does approve you for finance, the process can be very time-consuming and stressful. You may endure requests for reams of documents and get eventual approval but subject to additional security such as signing over your family home.

So what can you do about it? The great news is that there are alternative finance options such as private financiers and P2P lending. Many of these options bypass the behemoth bank bureaucracy and replace it with a common-sense approach. You can expect a quick decision based on supplying a couple of easy-to-get documents. Generally you can go the unsecured route and not have to worry about paying penalties if you want to pay your business loan back early. Businessloans.ie is partnered with the best alternative finance options in Ireland today. If you have a business project in mind we will be happy to listen, answer any questions you have and connect you with the best finance deal to grow your business.