So your business has had a few missed payments and the business bank statements are showing referral charges? Not to worry. It’s difficult to manage your cash flow as a SME owner in the current economy. Unfortunately missed payments can begin to stack up quickly. If there are not too many, then unsecured business loans are still possible. Our partner credit teams generally review your accounts & bank statements and grade them A, B, C or D. Then you get a quote depending on what they think the risk is, usually from 6% to 12%. The more missed payments the more you’re pushing up the risk gradings. We can get you approval information quickly; usually in 24 hours. We never ask you for a fee so it costs nothing to find out. If you don’t like the quote you might want to consider alternatives.

4 ALTERNATIVE OPTIONS

1. Secured finance. If you have a good list of assets such as equipment, machines and vehicles a loan can be secured on them so missed payments are less of an issue due to the security on the assets. If the business owns land & buildings this can be used also but it only makes sense if you’re looking for amounts of €200k or more due to legal & other fees involved in this type of loan.

2. Invoice Finance. If you’re owed a lot on your book of debtors then invoice finance may work. There are one-off options & ongoing ‘line of credit’ arrangements based on how much you’re generally owed.

3. Merchant Cash Advance. If your business takes payment with a card machine, PayPal, Stripe etc. then this revenue can be taken in to account for a loan. Approval can be a little easier and can overlook a few missed payments because the lender is ensured to be paid from a small daily percentage of the income, all automatically.

4. Asset Finance. If you need a loan to get more equipment, machines, vehicles or anything that could help your business trade stronger, this option can work. It’s easier for approval because the lender usually retains ownership until the last payment is made. If the business struggles to keep up payments they can potentially take the asset back.

If you’re considering finance, we can help. Call the BusinessLoans.ie team for fast finance quotes on 01 55 636 55 or email hello@businessloans.ie. Always check with your accountant or business advisor if debt finance is the appropriate solution for the situation.