Business loan options for post-pandemic imperfect accounts

When business owners get in touch with us, it’s often because their accounts and bank statement history are imperfect. A typical bank loan simply doesn’t look like an option. While there are some Covid-19 loans, many of them are focused on businesses that only suffered a dip in net profit or turnover, yet remained profitable. The reality facing many businesses is that their latest accounts are showing pandemic related losses. If that sounds like you, here are some options worth considering.

Invoice finance

Invoice finance can work for businesses that have Covid losses. If businesses are owed money by quality business debtors & the finance company is satisfied they can get credit insurance on them, then this could be an option to release 80% or more of the value of what a business is owed now. Then they get a final settlement when the debtor pays, less the lender’s fees.

Royalty finance

If you have a steady stream of growing sales but your accounts are imperfect a royalty finance company may advance working capital in exchange for a guaranteed percentage of future sales until an agreed amount is paid back.

Merchant cash advance

Merchant cash advance is similar to royalty finance but the agreed percentage of sales is deducted daily from the merchant account such as business card machine totals, Stripe or PayPal.

Sale & leaseback

Sale & leaseback can work for businesses that have assets but can’t get approved for unsecured finance or they can achieve the amount they need. Many businesses prefer to buy machines and vehicles. in some cases they may use up too much of their rainy day fund and now find they have their working capital locked up in their assets. This option lets them access working capital while continuing to benefit from the use of the assets.

Bridging loans

Bridging loans are focused on property assets that a business or business owner has. If there is equity in business offices, units, investment properties and more then there can be an opportunity to get some short-term finance. Amounts from 150,000 are possible but due to set legal fees, the bigger the loans the more they make financial sense.

We’re here for you 7 days to organise fast finance quotes. It’s always a good idea to review quotes with your accountant and assess if they will be the right solution. We also have professionals in our network such as virtual CFOs who can offer your business a health check. Email us at hello@businessloans.ie or call 01 55 636 55.

Top 5 reasons why Irish business owners use alternative finance

Ireland is quickly becoming one of the top Fintech centres of the world. The prime example is Stripe who are building their workforce here. Non-bank lenders are fast. They are not stuck with old processes & legacy systems that can slow down lending decisions. They also use different data points and Artificial Intelligence in some cases to help automate a lot of their work. Business owners are sick of getting the runaround from banks & the painful “slow no”. SMEs are exiting the pandemic with depleted working capital and immediate requirements that can’t wait. The good news is that many alternative lenders can have you approved in 24 hours.

Here are the top 5 reasons for using alternative finance:

1. Bank taking too long.

2. Bank requesting too much information.

3. They have some missed payments.

4. They have a seasonal business and they need an understanding credit team.

5. They have a particular amount they require and they only got partially approved.

BusinessLoans.ie can help you get multiple business loan quotes to compare so all you have to do is choose the best deal. We’ve built our relationships with all the credit teams and can attend to their approval processes to get your quotes fast. Get in touch today. Email us at hello@businessloans.ie or call 01 55 636 55.

Business loans for reopening pubs in Ireland

If you’re a pub owner reopening we raise a glass to you. After up to 500 days closed you can serve once more. If you need finance, BusinessLoans.ie has access to stocking loans & restart loans. If your bank is not on board, our lending partners understand that they may need to look at old trading history from when you were trading as normal pre-Covid times. Decisions can be made in days. Other lenders look at your merchant account from all the transactions you’re doing on the card machine and can give you an advance with a flexible repayment.

Whether you need working capital for stock, wages, renovations or Covid safety equipment, we’ve got you covered. Call us today for fast finance quotes on 01 55 636 55.

BusinessLoans.ie - Loan types approved for 2021

Now that we’re well in to the second half of 2021, we’re reflecting on the successful business loan approvals our clients have enjoyed so far.

1. Unsecured Loans. This accounted for a third of loan approvals. Many of these were under the Covid-19 Credit Guarantee Scheme where the Irish Government is taking on 80% of the risk so rates are lower and there are no personal guarantees.

2. Merchant Cash Advance. 19% of loan approvals were based on merchant accounts, such as your card machines or online accounts like Stripe. Essential businesses, for example, retail and takeaway restaurants made up the bulk of these approvals.

3. Asset Finance. In a tie for third place is asset finance. Lots of businesses were taking advantage of low rates under the Credit Guarantee Scheme to stock up on assets to trade stronger as the pandemic restrictions eased.

4. Invoice Finance. In 2021 many business owners found their debtors were taking longer to pay so they took advantage of invoice finance to help with their cash flow cycle.

5. Secured Loans. Some businesses were unable to get unsecured finance due to struggling bank account performance. If they had spent on assets they could release working capital while still being able to use their assets through sale & leaseback.

6. Property Development. There was a certain level of site acquisition finance and development finance activity we assisted with.

So that’s a quick recap of what’s kept us busy in 2021, so far. We expect an increase in activity in loans for the rest of the year, especially from busy industries of construction, hospitality & retail. If your business needs a loan get in touch. Email hello@businessloans.ie or call 01 55 636 55.

Recent Deal: Asset finance for machinery to dig in to the construction boom

BusinessLoans.ie is celebrating a recent client success. The business owner had been searching for a machine at the right price. In Ireland there was little value to be found. In the past he would have dealt with importing from the UK but Brexit rules had been proving costly. Then he found the right option from a dealer in the North, where Brexit rules are less hassle. He engaged his own bank first to explore finance but he wasn’t getting much support. BusinessLoans.ie work with a number of agile asset finance companies and were quickly able to get him a low-rate, 4 year term, hire purchase quote. He will now be able to keep up with demand from his construction clients and the machine will add revenue to grow the business.

If you need asset finance there a many options on the market right now, including with the Covid-19 Credit Guarantee Scheme, giving you up to €1 million at low rates over 5 years. If your business can use assets to trade stronger exiting the pandemic, ask us about quotes. Whether it’s new or used we can assist. Email us at hello@businessloans.ie or call 01 55 636 55.

Recent Deal: A sweet treat bakery changing their business recipe

We recently spoke with a business owner whose business was affected by the pandemic. They make cakes, sweet treats & chocolates. Before the pandemic they mostly served businesses in the local area but their retail & office clients declined as people worked from home. They re-evaluated the business and stayed profitable by building their direct to consumer sales, especially through online channels. For their deliveries they needed a new van and bought it out of cash.

When they spoke with the BusinessLoans.ie team they were low on working capital and needed to buy many smaller items for their commercial kitchen. They had engaged their own bank but they were not supportive. We found them a simple unsecured loan quote for the €30,000 within days and they were able to get on with what they do best. If your business needs a loan get in touch. Email hello@businessloans.ie or call 01 55 636 55.

COVID-19 Business loans - No repayments for 6 months

You may have heard of a loan option backed by the Irish Government through Microfinance Ireland. It’s designed to support microbusinesses through the pandemic that may need working capital. You get 0% interest and no repayments for the first six months. If you start the loan application with the Local Enterprise Office, the rate will start ticking over at 4.5% on conclusion of the interest-free period. You can try for up to €25,000 and a term up to three years for working capital or five years for capital expenditure.

The application process can be a pain point for some business owners. BusinessLoans.ie has professional application partners who can organise this part of the process for a small rate. Talk to us today. Email hello@businessloans.ie or call 01 55 636 55.

Security Token Offering - A way to raise capital for your startup?

If you’re a founder looking to raise capital a Security Token Offering (STO) will be one you’ll be hearing more about in the coming years. Every day we’re hearing about crypto price fluctuations and overnight millionaires. What’s more under the radar is the blockchain movement or use of ‘smart ledgers’ to track and transfer ownership using tech. So today, instead of old share offerings a STO is a way of raising finance using tokens instead of shares that make it easier to transfer.

Founders for a number of years have been using Initial Coin Offerings (ICO) to raise capital. ICOs enabled promoters to avoid red tape & regulatory issues. On the other hand this freedom caused some bad actors to engage in fraud, losing investors money and trust. There has since been a rise in the use of tokens instead of ICOs. STOs are regulated under securities law because tokens are tied to a physical asset. Both ICOs and STOs are currently an option for exciting startups to generate capital to grow. Many consider them better than share offerings because the tech makes it easy to create more offerings, cutting out the middleman & at a low entry price making it attractive to investors All in, it makes it more likely to generate funds to grow.

Successful STOs have traits of being in tech-focused startups that have the ability to trade on the world stage. Another area that is successful is in real estate investment. It’s expanding all the time and if you feel it could be a fit for your startup the BusinessLoans.ie team are here to guide you through the process using our trusted partners. Get in touch now on hello@businessloans.ie or call 01 55 636 55

Irish businesses increasingly using Fintechs for fast funding

Why are Irish businesses choosing alternative finance? Banks have never picked up their risk appetite to support Irish businesses since the last recession. Entrepreneurs quickly found themselves at the mercy of banks looking to call in loans. Banks downsized and lost a lot of their specialised lending teams. Fintechs were quietly hiring and building agile systems to knock out quotes in days, where before the banks were taking weeks or months due to outdated legacy systems and lack of will due to market dominance. Now that we’re coming out the other side of the pandemic, this trend is set to accelerate.

Today Irish businesses have access to government supported loans, but only for a limited time. When pandemic loans & supports are gone the good news is that the era of ultra-low interest rates looks set to continue. There is a lot of money sitting in negative interest rates with banks and investors are motivated to seek better returns by supporting businesses with debt or equity funding.

For microbusinesses getting everyday business finance, owners now find that dealing with non-bank lenders gives them that personal touch they used to get with the banks, in a quick turnaround and at fair rates. For SMEs looking to grow, aquire or merge in this fluid time for businesses exiting the worst of the pandemic, capital is available. Talk to the BusinessLoans.ie and use our network of trusted financiers to get you the best deal. Email us at hello@businessloans.ie or call 01 55 636 55.

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.