Recent deal: Dublin scaffolding firm gets €300k equipment loan

BusinessLoans.ie is celebrating another successful loan. Our client was a large Dublin scaffolding business. They are very busy and experiencing good year-on-year growth. A purchase of €300,000 of scaffolding was required to service more contracts. Banks had been unhelpful. They also tried non-bank asset finance companies but scaffolding is considered unsuitable for hire purchase & leasing.

BusinessLoans.ie identified a non-bank lender who could quote them unsecured based on the strong performance of their accounts & bank statements. They were approved & funded quickly, at low rate on the €300,000 over a 3 year term. The business owner was pleased there was no early repayment penalty. If, during term, the company has excess cash reserves they can settle the loan and save on remaining interest.

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

Recent deal: Construction company gets capital for machines & projects

BusinessLoans.ie is celebrating another happy client. An Irish construction firm secured over €110,000 to assist with machinery & working capital for a new housing project. Their business performed well in 2021 but a payment they were expecting was delayed. This impacted their cash flow and planning for their next big job. The owner had identified a used machine at a bargain price. While it was in great condition, it was too old for many asset finance lenders to quote. Our unsecured lender was unconcerned with the age of the asset. The business’s accounts & bank statement performance were strong enough to make the lending decision without taking a charge on the machine. The business owner was able to draw down their funds in days and got a machine that will be of great benefit to their ground works for their new project. On top of this they have some additional working capital left over to assist until the first stage payment comes in, easing cash flow pressure.

Does your business need a loan? Email us at hello@businessloans.ie or call 01 55 636 55 for fast finance quotes.

Construction finance for social & affordable housing in Ireland

BusinessLoans.ie is happy to announce a new social housing construction finance partnership. It has a quick turnaround and competitive rates. Property developers have a host of EU and Irish Government backed loan options available but many are finding the red tape too much. Our partner is keen to get funds out as quickly as possible and makes it easy. Here’s what you can expect:

• A base rate from 7%

• Deals below €3 million, 1.5% in and 1.5% out

• Deals above €3 million from 1% in and 1% out

• Deals from €1 million to €200 million

• Only pay interest when you draw down a tranche

• Recycle loan, keeping funding cost down

• A credit team that will value your site on what it’s worth today; not what you bought it for

• 75% Loan To Value

• 80% Loan To Cost

If you’re sitting on sites and want to develop in the social & affordable space talk to the Business Loans team today on 01 55 636 55. We’re here for you 7 days to get approval feedback.

BusinessLoans.ie MD Rupert Hogan talks finance on iProperty Radio

Rupert Hogan, MD of BusinessLoans.ie spoke with Carol Tallon on iProperty Radio about all things construction finance and SMEs in Ireland. The show is on Dublin South FM from 6-7 pm every Tuesday and features all the news on the Irish property world. Here are the key points Rupert covered:

• Construction SMEs are finding support from non-bank lenders

• What’s hot right now is the Covid-19 Credit Guarantee Scheme

• For construction businesses affected so badly by restrictions, it’s available through many lenders and with many different types of finance

• If accounts are still showing profit, simple unsecured loans up to €250k are there

• If accounts are weaker consider secured lending, invoice finance & asset finance

• Bridging loans based on business-owned property start at €150k and go in to the multi-millions

• Development finance is readily available

• If construction companies are concerned about the viability of their business talk to their accountant or get free advice and support from the Local Enterprise Office

4 finance options for small Irish contruction projects

Property development financing for smaller construction projects continues to be a challenge in Ireland. Banks seem interested in bigger projects in the multi-millions but most builders are microbusinesses that work on everyday renovations & flips. There seems to be a lack of options but here are four worth considering:

1. You can ask us about a pre-approval for unsecured finance up to €250k. This can help you plan your finances and be ready to jump on the next opportunity.

2. You can ask us about asset refinancing up to €1 million. If you’ve bought a lot of expensive machinery unlock value to use on projects.

3. You can ask us about bridging loans starting at €150k. This can let you release working capital from rental properties and commerical buildings.

4. You can ask us about development finance from €250k and upwards. If you have a site and other collateral there are options for smaller deals.

Whether you’re a seasoned property developer or a builder with a side-project we’ve got you covered. Our alternative lending partners can execute your finance in a faster turnaround than a typical bank. Get in touch today. Email hello@businessloans.ie or call 01 55 636 55.

Construction loans for small developments in Ireland

We often hear from smaller construction companies looking for loan quotes for working capital to finish off a project, buy a fixer-upper to flip or buy a site for a small development. There is a gap in the market for financing everyday builders whose deal size falls short from what many lenders are willng to finance. Most lenders ideal entry-level client is looking for €500k to €1 million, as well as having a development in a town with a population over 10,000. One reason is due to the set fees for professionals such as lawyers, who can charge the same for a €200k deal as they would a €2 million deal, making small deals unattractive and so have a lower rate of offer acceptance. Another issue is protection from shocks to the economy. The more rural the development the more likely a chance of a significant drop in value, potentially leaving the lender exposed to losses.

Other times we hear from builders who have been self-financing a project but run out of cash. The collateral so, is an unfinished build and this can be challenging for lenders to want to use to lend against, in case they are left on the hook if the project runs in to problems affecting repayment. So what options are there for construction companies financing lower end deals?

Simple unsecured loans

One option, if the company is generally profitable and the bank statements can show affordability for repayments is an unsecured loan up to €250k with a non-bank lender. Because it’s unsecured the lender is not as concerned with the project and collateral. They’re really relying on your track record and operation of the bank account.

Bridging loans

While in the example above with a builder wishing to use an unfinished or rural site as collateral to get development finance, often when you dig a little deeper this project might not be the only collateral available. It’s easier to use collateral of more attractive rental properties and get a bridging loan. Deals from €150k and upwards can work. These funds can then be used for the riskier project then lender otherwise would not have financed.

Invoice finance

If you’re working on commercial projects with reputable companies and due stage payments there are flexible invoice finance options that enable you to access most of the working capital on raising your invoice. You then get a final settlement with the debtor pays.

If you’re a property developer and need financing we have a wide range of contacts in pillar banks, non-banks and even high net worths who may be able to finance your project. BusinessLoans.ie is here to help 7 days. Email us at hello@businessloans.ie or call 01 55 636 55.