Business loans: How much can I get?

We speak with a lot of business owners and usually they will ask how much of a loan can they get. The short answer is, it depends on the affordability for repayments showing in the recent bank statements. So if you were looking for €100,000 over 3 years the repayment could be around the €3000 a month mark. If, looking at the bank statements, a direct debit for €3000 looks like it would bounce a lot then the credit team might not pass it.

But it’s more complicated as we exit this series of lockdowns. Some credit teams will take a look at financials from when your business was trading normally pre-pandemic and factor this in to their lending decision; especially if you’re in an industry expecting a boost in trade.

If your accounts are showing a loss the chances of approval for a simple unsecured loan are lower. In this situation other loans can work. If you’re in hospitality and take a lot of card payments your merchant account data could get you an advance equivalent to around a month’s turnover. If you are in manufacturing or an agribusiness and have machinery they can be refinanced to release working capital. If you’ve a book of debtors invoice finance can work.

There are a number of finance solutions on the market and BusinessLoans.ie organises quotes. We never ask you for a fee and we’re happy to talk, find multiple quotes for you to compare and if the deal is right, get you funded fast. Email us at hello@businessloans.ie or call 01 55 636 55.

Early-stage Business Loans In Ireland

When your business is getting started you need access to business loans more than at any other time. But it’s at this time when it’s hardest to get. The pandemic hasn’t helped matters either. You don’t have enough history for lenders to make informed decisions to give you longer terms. We often speak to business owners who have gone to the bank and are not getting support or they see the information request and they are reluctant to put in their time and expense of getting the request attended to. Here are a few ways we offer to help.

BANK LOAN APPLICATION SUPPORT

We have a contact in the bank who can help early stage businesses but he wants a business plan, financial projections for the short, medium and long term and a whole lot more. He also wants to know how much of your own funds are committed to the business. The less ‘skin in the game’ you have the more likely it’s a decline. If you can provide what they require you can get up to €120,000 at rates or around 6%. Alternative lenders for early stage businesses will generally have lower paperwork requirements but the rates are higher. If you want the best deal of a bank with the added convenience of getting the hard yards done for you, we have partners who produce business plans and financial modelling with a track record of success in approvals.

Unsecured loans from alternative lenders

We have partners who will offer early-stage businesses unsecured loans. Generally we are talking about having one years set of accounts done before they will look. Then you can expect, instead of around 6% with the bank, a double-digit percentage with the non-banks. One thing to note is you usually won’t have to worry about an early-repayment penalty. So if you can find cheaper finance elsewhere as you get more profitable trading history you can exit the more expensive loan. For unsecured loans from non-banks it’s when you get to two years accounts that rates become more reasonable. They’re graded for risk, A, B, C, D, E etc so your rate could start at 4.75% currently in that situation.

Merchant cash advance

Any business with at least 6 months history, that uses a card machine or a merchant account online such as Stripe or PayPal, can get an easy finance solution based on the volume of monthly sales. The rule of thumb is you can get a quote equivalent to one month’s sales. If you are doing, for example, €50,000 a month you might get a €50,000 offer. At the moment the is especially important for hospitality businesses finding their feet and eCommerce businesses needing advertising and stock.

INvoice Finance

If you’re building up a book of debtors and you need working capital to pay wages, buy materials or just keep the lights on then you can release cash flow trapped in your invoices as soon as they’re issued. The flexible options enable you to get around 80% now, get charged around 1.5% per 30 days and you then get a final settlement when the debtor pays and you exit the short-term arrangement. Usually your debtor is insured so you get extra comfort. If something goes wrong with their business you’ll get a pay out.

Asset Finance

A lot of early-stage business owners who come to us looking for loan quotes want cash loans. But when you drill down you can find a lot of their need is made up of buying assets such as equipment, machines & vehicles. It’s far easier for asset finance companies to approve an early stage business because they retain ownership of the asset until the final payment is made. If something goes wrong with your business they can take it back so that’s an easier lending decision than lending cash unsecured.

There are a host of other business loan quote options that might fit your situation. We’re here to help 7 days from early ‘til late. Call us on 01 55 636 55 or email hello@businessloans.ie.

Recent client. butcher with covid safety renovations

This week BusinessLoans.ie assisted a long-established family business with a need to renovate some of their butcher shops to make them safer for their customers. They took in to account the Health Service Executive guidelines on ventilation and social distancing. This led them to realise they needed some alterations involving construction, as well as new equipment for their three locations. In total, they needed €60,000. Unfortunately their bank seemed to be giving them the “slow no”. They spoke with us and got a fast finance quote in 24 hours and had the funds in their account in days.

Does your business need finance? We’re here for you 7 days to organise your quote. Enjoy low rates & no personal guarantees under the Covid-19 Credit Guarantee Scheme. Email us on hello@businessloans.ie or call 01 55 636 55.

BusinessLoans.ie Interview on Dublin City FM 'You & Your Business' Show

Rupert Hogan, Managing Director of BusinessLoans.ie was invited to discuss business financing in Ireland during the pandemic with Alec Drew, The Business Expert, on his ‘You & Your Business’ show on Dublin City FM. Each week he invites an expert from the world of business to share their knowledge, insights & tips to help with business challenges.

Rupert Hogan appeared on the show back in 2019 and this interview covers the best financing options available through the pandemic; from government-backed loans, invoice financing, trade finance, crowdfunding and more. Listen back.

Business Loans for Wholesale & Retail in Ireland

Recently we helped a wholesaler who sells a commodity. They had plenty of space in their warehouse and an opportunity to buy at a great rate, hold the stock for a few months then sell at a premium, locking in a tidy profit. They had been speaking with their bank for a long time and didn’t seem to be getting anywhere. They needed €150k with some urgency. A great deal had become available. We were able to get them the €150k approved and in their bank account in days.

Before they said yes to the loan offer, they had some concerns. The interest rate from the alternative business lender was a little higher. When their CFO did the calculations, the difference in price per month in the shorter term was insignificant. Especially with the sizable profit margin they would realise from the opportunity they had in front of them.

In this case we organised a simple stocking loan. Other times we can help you trade more smoothly by conserving your working capital with trade finance. This enables you, for example, to use someone else’s money (the trade financier) to provide funding for your goods from your shipping container coming from overseas. This stops your working capital being tied up for weeks while it’s in ports and on the high seas. Then when you have got your stock and it’s with your customers, you may be waiting a while to be paid, depending on the terms you provide to your debtors. Using invoice finance you can release up to 90% of the value of the invoice right away and then get a final settlement when paid.

Trade finance together with invoice finance lets you keep your working capital for day-today expenses as they arise. If you’re considering business loans call us 7 days on 01 55 636 55. We’re here to help & get you fast finance quotes.

Business Loans for Reopening Retail Businesses in Ireland

There are a number of loan options on the market for businesses that are reopening after lockdowns. You can potentially get loan quotes from pillar banks or alternative business lenders under the Credit Guarantee Scheme for working capital, stock or other needs. But what if your business accounts and bank statements are now imperfect after all these lockdowns and you don’t qualify? The good news is there are business finance options if you’re currently transacting on your card machine.

BENEFITS FOR YOUR BUSINESS

• Fast decision based on your volume of sales by card

• Easy application process

• Flexible repayments that work with your cash flow

KEY CRITERIA TO ACCESS FUNDING

• Your business is transacting from €4000 a month by card

• You have at least 6 months merchant statement history

• Your business passes the credit check

If you’re in retail or any shop, hairdresser, barber, hardware store or takeaway restaurant talk to us about organising a finance quote today. Even if the bank has said no and you don’t feel confident, we can often assist. So long as you’re currently trading, the partner credit team are understanding & can even top up your facility as your cash flow improves. We’re here for you 7 days on 01 55 636 55 or email us on hello@businessloans.ie.

Low Rate Unsecured Business Loans with the Covid-19 Credit Guarantee Scheme

Did you know that Irish businesses affected by the pandemic can get low-rate loans with no personal guarantees for peace of mind? The government & the SBCI have allocated €2 billion to banks & alternative lenders to help businesses with working capital, business expansion and for buying new items they need to perform at this time. Get loans from 6 months to 60 months at rates from 4.75%

BENEFITS FOR YOUR BUSINESS

• Fast approval

• Low rates

• No early repayment penalty

• No personal guarantees

• Wide variety of loan purposes

KEY CRITERIA TO ACCESS FUNDING

• Your business is down 15% on turnover or profit

• Your business is generally profitable

• Your business passes the credit check

Talk to the business loans team today about getting your simple unsecured loan quote. Generally our partner credit teams will review simple documents such as accounts & bank statements. They grade them for risk from A grade down to D grade and apply a rate from 4.75%. It costs nothing to find out if you qualify & at what rate. Call us now on 01 55 636 55 or email us at hello@businessloans.ie. We’re here to help, 7 days.

BusinessLoans.ie April 12th Hospitality Grants and Loans Update

As of Monday April 12th it’s okay for bars & restaurants to serve takeaway alcohol to customers. While takeaway pints were never against the law most businesses complied with the government request. As Micheál Martin poetically said “forget about takeaway pints”. However, now that people can travel freely within their county, or 20km from home if crossing county borders restaurateurs & publicans will see increased trade. Under licensing laws, there is a requirement for the sale of takeaway alcohol that it must be consumed a minimum of 100 metres from the premises where the drink was originally purchased.

The Outdoor Dining Enhancement Scheme

To combat the effects of Ireland’s mixed weather on your business, you could benefit from a grant up to €4000. It is for shelter & outdoor dining infrastructure and you can be prepared for full reopening & ending of the 100 metre rule. You can get this government grant only if you have a business that serves food. The scheme gives you 75% ex VAT of the cost of equipment purchased / installed, up to €4,000 per applicant. Only items purchased after June 1st, 2020 & up to September 30th, 2021 are eligible. Local Authorities administer it so you would need to reach out to them to claim this, or get more information from your Local Enterprise Office.

Loans

BusinessLoans.ie will be able to assist businesses with loan quotes as your trade improves. We are monitoring the situation with alternative lenders and their appetite for lending. The rule of thumb has been if the business is not currently trading they’re reluctant to quote. The first finance option likely to be available is based on your card machine. The partner credit teams will see how you were trading before the pandemic and look at the trade you’re doing when you reopen and hopefully make an offer. Then all going well, will top up the finance facility as turnover increases as lockdowns further ease.

There are other loans that will become more available as trade increases, from simple unsecured loans to asset finance for perhaps a food truck. We’re hearing Local Authorities are more open to offering places to pitch and this could be an important revenue stream to pivoting hospitality businesses this summer.

Talk to us about your situation. We’re here for you to organise loan quotes on hello@businessloans.ie or call 01 55 636 55.

Low Paperwork Business Loans

If you’re a business owner who has had to deal with the bank for loans you may have seen nice advertisements about loans for brave people, help from friendly bank managers who have excess time to go through your application and make sure it’s done right, while benefiting from quick turnaround times. In my experience this utopia doesn’t exist. Sure, fast turnaround times are possible but that’s the exception rather than the rule. We deal with many business owners who have been getting the “slow no” or the runaround in some shape, way or form and they decide to see what other options are out there.

Alternative lenders are generally not going to make you go to the expense of doing up business plans and medium and long-term projections. Now that many have access to the government’s Covid-19 Credit Guarantee Scheme in some cases rates are on par or lower than banks. Mostly though, like anything in life if you want speed & convenience the trade off is a higher rate. But paradoxically, if you pay 1% or so higher, the cost per month in interest is minimal for short-term loans; and when you factor in all the hassle, time & expense you could have gone through for the bank loan application, all-in alternative finance can be cheaper even when you pay a higher interest rate.

Talk to us today about organising your next loan quote on 01 55 636 55. We’re here for you 7 days.

EIIS Scheme For Startups in Ireland?

The Employment and Investment Incentive Scheme (EIIS) has been funnelling up to €100m a year in to Irish businesses and in significant amounts such as Evercam who recently got €2.5m.

What is EIIS?

EIIS gives up to 40% tax relief on amounts up to €500,000 to investors in qualifying SMEs. In short if you’re a cashed up investor with big tax bills it’s attractive to invest because you can offset it against income arising in year of qualifying investment, including rental income. Then you need commit to 4 years and can make more money exiting the investment. See more on how it work and the pros and cons. Companies seeking EIIS relief must get approval from Revenue. Businesses like Dingle Distillery have encountered friction in getting their approval. Why? Some businesses are deemed ineligible; for example, businesses in professional services, finance, property development, forestry and more.

EIIS & Irish Startups

Due to the pandemic investment in startups has been lower. This is especially true for innovation driven enterprises that need significant amounts of cash before they become revenue generating. The Irish VC community has been lobbying the Irish government to expand the scheme to help startups. The SME taskforce published a growth plan for startups & scale-ups and this is being taken on board.

The Department of Finance is engaged in a public consultation process that’s moving forward from Budget 2021. There is an upcoming seminar with stakeholders and hopefully soon after we will be writing again about how startups can access EIIS. Or if you’re an SME wanting to find out if EIIS could benefit you now, we have partners who can assist. Call us today on 01 55 636 55 or email hello@businessloans.ie and we can put you in touch with our trusted EIIS partners for expert advice.