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.

Recently we had a call from a business owner who was reviewing all their expenses in their business. They were paying a lot of money out on different short-term business loans they had got for purposes of working capital, buying used equipment & a second-hand van. They had too many loan payments and wanted a solution to make repayments more manageable. They wanted to improve their cash flow and have more working capital in their bank account to run their business’s day-to-day outgoings & are now more conscious they need to be ready for business shocks as they arise. Does this sound like you?

The good news is there are a number of business loan options on the market, whether you’re looking at government-backed SBCI options you can most-likely get through your bank or you’re considering using alternative business finance. We have people in our network who are happy to take the pain away of dealing with applications like that. We specialise in non-bank loan quotes and we can often get your approval information organised within 24 hours so you can get on doing what you do best; running your business.

Talk to us today about loan quotes from 6 to 60 months. It can be for purposes not only of consolidating debts but for working capital, capital expenditure & more. So long as your business is generally profitable, is currently trading and can meet the repayments a simple unsecured loan can work. Or if your business has assets that can be used as collateral then we can organised secured loan quotes. We always recommend speaking with your accountant for financial advice on whether business debt is the answer for your situation. These are tough trading times and if there are big judgment calls get proper advice! We have people in our network we can refer you to if you from accountants to business advisors to insolvency practitioners. Call us today on 01 55 636 55. We’re here to help.