Irish Tech Startups Raise Record €1.48 Billion—But What About Smaller Businesses?

The latest IVCA VenturePulse report shows that 2024 was a record-breaking year for Irish tech investment, with €1.48 billion raised. Major deals, like XOcean’s €115 million and Fire1’s €116 million rounds, drove this growth. However, while big-ticket funding surged, smaller deals—especially under €5 million—saw a sharp decline.

For startups and SMEs, this highlights a critical issue: while venture capital (VC) remains strong for high-growth companies, many businesses seeking smaller funding rounds are struggling to secure investment.

The Growing Funding Gap for Smaller Businesses

The IVCA report found that:

  • Deals between €3 million and €5 million dropped 37% year-over-year.

  • Deals in the €1 million to €3 million range declined 24%.

  • Seed funding fell 4% over the year and 55% in Q4 alone.

This means that early-stage and growth-phase companies—especially those outside of deep tech or biotech—are facing increasing difficulties in accessing funding.

What This Means for Irish SMEs and Startups

While government initiatives, like the €250 million Seed & Venture Capital scheme, will provide some support, many businesses can’t afford to wait for public funding. This is where alternative financing solutions come into play.

At BusinessLoans.ie, we help Irish businesses access the capital they need—whether through business loans, asset financing, or alternative lenders. Unlike venture capital, which often requires giving up equity, our financing solutions allow businesses to grow while maintaining full ownership.

Need Funding? Here’s How We Can Help

  • Flexible Business Loans: We work with a network of lenders to secure funding tailored to your needs.

  • Faster Approvals: Unlike traditional bank loans or VC rounds, our financing solutions can be approved in days, not months.

  • No Equity Dilution: Keep full control of your business while securing the funding you need to grow.

Get the Capital Your Business Needs

If you’re an Irish business struggling to secure funding, now is the time to explore alternative finance solutions. Call the BusinessLoans.ie team today on 01 55 636 55 to discuss your options and take the next step in your growth journey. Or APPLY HERE.

Growing Your Business: Understanding Debt and Equity Finance

Scaling your business often requires access to capital. While some entrepreneurs have bootstrapped their way to success, this is the exception rather than the rule. For most businesses, external financing accelerates growth. You’ll typically face a choice between debt finance and equity finance. Understanding the pros and cons of each will help you determine the best fit for your business.

Debt Finance: An Overview

Debt finance involves borrowing funds that you’ll repay with interest. This can take the form of a lump sum loan, a rolling facility, or other options tailored to your needs. Here’s what you need to know:

How Debt Finance Works

Before applying for a loan, identify your funding purpose—whether it’s working capital, purchasing machinery, or financing a larger project. Once you understand how much capital you need and over what term, you can choose the most suitable loan.

In Ireland, the three main types of business loans are:

  1. Installment Loans
    Traditional loans that provide a lump sum with fixed repayment terms and amounts. These loans can be secured or unsecured.

  2. Revolving Loans
    These provide access to a flexible credit facility, such as a bank overdraft, that can be drawn upon as needed.

  3. Cash Flow Loans
    These loans are typically linked to your business’s revenue. For example, a merchant cash advance allows repayment based on card machine turnover, with a fixed percentage deducted as revenue comes in.

After identifying the right loan type, compare offers from various lenders. Approval typically depends on factors like your business turnover, how long you’ve been operating, and your creditworthiness. Bank loans often require strong personal credit and guarantees, whereas non-bank loans may have fewer requirements.

Pros and Cons of Debt Finance

Pros

  • Ownership Retention: Unlike equity finance, where you give up a share of your business, debt finance allows you to maintain full control.

  • Accessibility: Securing investors can be challenging, especially for businesses with less unique propositions. Debt finance is often more straightforward.

  • Flexibility: Many lenders offer repayment terms ranging from 6 to 60 months, with options for early repayment or refinancing.

  • Tax Deductibility: Loan interest is often tax-deductible—check with your accountant to explore potential savings.

Cons

  • Expense: Businesses with limited trading history or poor credit may face higher interest rates.

  • Declined Applications: Loans can be denied if your business doesn’t meet underwriting criteria.

  • Personal Guarantees: In Ireland, personal guarantees are common, meaning you may be personally liable for repayment if the business fails.

Equity Finance: An Alternative to Debt

Equity finance involves raising funds by offering ownership stakes in your business. This approach reduces financial risk but also means sharing profits and decision-making with investors.

While equity finance can provide growth capital without adding debt, attracting investors requires a compelling pitch deck and solid financial ratios. In Ireland, only a small percentage of businesses secure funding from venture capitalists or angel investors. Crowdfunding platforms may be more viable but require significant effort and initial investment from your network to gain traction.

Exploring Types of Business Loans in Ireland

Bank Loans

Banks offer medium- and long-term loans with competitive interest rates, particularly for businesses qualifying for SBCI-backed loans. However, their eligibility requirements are often stricter, requiring detailed financial documentation.

Non-Bank Loans

Private lenders, including peer-to-peer platforms, typically offer faster approvals and flexible terms. These loans are graded based on risk, with interest rates ranging from 6% to 12%.

Business Lines of Credit

Lines of credit, such as overdrafts or invoice financing, provide flexible access to funds. While they often come with higher interest rates, they’re ideal for businesses with seasonal or irregular cash flow.

Asset Finance

If you’re purchasing equipment, vehicles, or machinery, asset finance can be a practical solution. The asset itself serves as collateral, reducing the lender’s risk.

Venture Debt

This hybrid option combines debt with equity conversion rights, offering more straightforward transactions than traditional equity finance.

Royalty Finance

In this model, you receive funding in exchange for a percentage of future revenue, allowing you to retain ownership without the complexity of equity financing.

Merchant Cash Advances

Businesses with card machine or online payment systems can secure advances based on turnover. Repayments adjust with your revenue, but this flexibility often comes at a higher cost.

Making the Right Choice

Choosing between debt and equity finance depends on your business goals, risk appetite, and growth strategy. Debt finance preserves ownership but increases financial obligations, while equity finance reduces personal risk but involves sharing control.

Whatever path you choose, seek professional financial advice to ensure your decision aligns with your vision. For tailored advice and fast finance quotes, call 01 55 636 55 or APPLY HERE.

Be Business Loan Ready for 2025: Essential Steps for Small Business Owners

As 2025 approaches, securing financing for your small business is more critical than ever. Whether you’re looking to expand operations, invest in new technology, or manage cash flow, being prepared for lenders can make all the difference. Here’s a comprehensive guide to ensure you're ready to impress the lenders and secure the funding you need:

1. OrganiSe Financial Statements

Lenders will want to see detailed financial statements, including balance sheets, income statements, and cash flow statements. Ensure these documents are accurate and up-to-date. This transparency shows lenders you have a clear understanding of your business’s financial health.

2. Create a Solid Business Plan

A well-crafted business plan demonstrates your vision and strategy for growth. Include detailed market analysis, business goals, and a clear plan for using the loan. A strong business plan reassures lenders about the potential success and stability of your business. This will be necessary for bank loans but many non-bank lenders can work without this.

3. Maintain a Consistent Cash Flow

Cash flow is crucial for loan repayment. Ensure your business has a steady cash flow by managing receivables and payables effectively. Lenders look favorably on businesses that can demonstrate consistent revenue streams. If you’re struggling with cash flow because of debtors taking too much time to pay then invoice finance can help.

4. Build a Strong Relationship with Your Bank

Establishing a good relationship with your bank can be beneficial. Regularly communicate with your bank’s representatives and keep them updated on your business’s progress. A strong rapport can provide valuable insights and improve your loan application’s chances.

5. Prepare Collateral

Some loans may require collateral. Identify assets that can be used as collateral and understand their value. Having collateral ready can make your loan application more attractive to lenders. Examples of collateral are business buildings, vehicles and machinery.

6. Seek Professional Advice

Consult with financial advisers or business loan brokers to get expert advice on preparing your loan application. They can provide insights into what lenders are looking for and help you optimise your application for approval.

7. Stay Informed About Lending Trends

Lending criteria and trends can change. Stay informed about the latest developments in the financial sector to anticipate and adapt to changes. This knowledge can help you position your business more favorably to potential lenders.

Conclusion

Being prepared is half the battle when it comes to securing business financing. By following these steps, you can enhance your business’s appeal to lenders and increase your chances of securing the funding needed to thrive in 2025. Start early, stay organized, and don’t hesitate to seek professional advice to navigate the complex landscape of business financing.

If you’re considering getting business loans for 2025 call the BusinessLoans.ie team on 01 55 636 55 or email hello@businessloans.ie to get fast finance feedback on what loans might work and initial feedback on potential amounts.

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: Ukraine Credit Guarantee Scheme

BusinessLoans.ie is happy to have access to the Ukraine Credit Guarantee Scheme (UCGS). It gives businesses lower rate loans and without personal guarantees.

What is UCGS?

Our partner credit teams have Strategic Banking Corporation of Ireland (SBCI) funds under the UCGS. Businesses that have seen costs go up 10% due to war can qualify, for example, inflation on utilities and fuel.

Loan features:

  • Rates start at 5.65%.

  • Loans from €10,000 to €250,000.

  • Terms from 12 months to 60 months. 

  • No personal guarantee.

  • Instant funding on acceptance.

  • Unsecured business loans for working capital or investment. 

If the business qualifies under the scheme, it still needs to pass the underwriting process. Expect to need to have recent filed accounts in profit, a tax clearance certifiate and no recent missed payments in the bank statements.

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

Fast & furious turnaround on €70,000 car dealer stocking loan

BusinessLoans.ie is celebrating another quick turnaround loan quote; approval in less than 24 hours. Yesterday a car dealer called because their bank seemed to be giving them the run-around on their annual car stocking loan arrangement. The lack of correspondance and hearing of new additional credit checks had given him the nudge to try elsewhere.

BusinessLoans.ie found that, while they had a dip in turnover, it was because of the Pandemic and they recovered well in 2023, with their best sales yet. Our lending partner approved them for the same amount as the bank by the next morning and the client was happy with a stocking loan facility with flexible repayments that worked with their cash flow cycle.

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

Recent deal: Fire protection business gets a €50,000 cash flow loan

BusinessLoans.ie is celebrating helping another client. It was for a business in fire protection & construction services. The business had been trading for a few years, built up solid turnover and reinvested in growing the business. However, they had reliable but slow paying debtors such as county councils and much of their cash was tied up here. Net profit was tight and they had an arrangment with Revenue, so no tax clearance certificate. Their bank was unable help and they had wages and other bills to pay.

BusinessLoans.ie identifed a flexible repayment loan that could work due to their sizable turnover. They got €50,000 funded in days and were happy to have a flexible repayment that worked in tune with their cash flow cycle.

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

Recent deal: Tile superstore gets a €100,000 stocking loan

BusinessLoans.ie is celebrating another successful deal. It was to assist a tile superstore get extra stock. Business was booming but their last set of accounts ended up on a small loss due to the pandemic. Because of the loss they were having a difficult time accessing unsecured finance. We identified a merchant cash advance opportunity due to their large volume of sales by card. The lending partner was able to provide an initial €30,000 facility and then, some months later, another €100,000 facility. Our client was happy to have a flexible repayment that works with their cash flow cycle.

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

Working capital finance to reduce pressure from inflation

In these inflationary times, business owners in Ireland are battling rising input & labour costs. There’s limited scope to raise prices, so other reactive measures can be considered such as incentivising clients to pay upfront, amending receivables policies, negotiating supplier terms or proactively organising finance before the bank statements get too tight.

BusinessLoans.ie has a number of working capital finance quote options. The most popular solution is a simple unsecured loan with low repayments over a number of years. Our lending partners generally require less paperwork than the banks and don’t charge an early repayment penalty; so if the cash flow pressure eases during the loan term, it can be fixed up early to save on interest. Other options that can work are invoice finance & trade finance, merchant cash advance or various other types of secured lending.

Does your business need a loan? We’re here for you 7 days to organise fast finance quotes on 01 55 636 55 or email hello@businessloans.ie.