Recent deal: A funeral home with a working capital requirement

BusinessLoans.ie helped a funeral home get a finance facility. They had outlaid a lot on capital expenditure and the bank account was too low on working capital. A requirement of €100,000 over the next 24 months was identified. This would ensure they had steady cash flow and could safely build up their reserves again.

BusinessLoans.ie identfied an opportunity to get a loan under Covid-19 Credit Guarantee Scheme. This gave the business owner an excellent rate & comfort that he wouldn’t have to sign a personal guarantee. The financial controller had been considering a 12 month term but on hearing there was no early repayment penalty decided to go with a 24 month term and have the option to settle the balance of the loan during term to save on remaining interest if cash reserves are deemed sufficient upon review. They are confident in their forward planning now that they have secured financing.

If your business needs funds for working capital, expansion or capital expenditure talk to us. The Credit Guarantee Scheme is still available until the end of the year, or when the funds are gone. We’re here to help 7 days. Email us at 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.

Low Rate Unsecured Business Loans with the Covid-19 Credit Guarantee Scheme

Did you know that Irish businesses affected by the pandemic can get low-rate loans with no personal guarantees for peace of mind? The government & the SBCI have allocated €2 billion to banks & alternative lenders to help businesses with working capital, business expansion and for buying new items they need to perform at this time. Get loans from 6 months to 60 months at rates from 4.75%

BENEFITS FOR YOUR BUSINESS

• Fast approval

• Low rates

• No early repayment penalty

• No personal guarantees

• Wide variety of loan purposes

KEY CRITERIA TO ACCESS FUNDING

• Your business is down 15% on turnover or profit

• Your business is generally profitable

• Your business passes the credit check

Talk to the business loans team today about getting your simple unsecured loan quote. Generally our partner credit teams will review simple documents such as accounts & bank statements. They grade them for risk from A grade down to D grade and apply a rate from 4.75%. It costs nothing to find out if you qualify & at what rate. Call us now on 01 55 636 55 or email us at hello@businessloans.ie. We’re here to help, 7 days.

BusinessLoans.ie April 12th Hospitality Grants and Loans Update

As of Monday April 12th it’s okay for bars & restaurants to serve takeaway alcohol to customers. While takeaway pints were never against the law most businesses complied with the government request. As Micheál Martin poetically said “forget about takeaway pints”. However, now that people can travel freely within their county, or 20km from home if crossing county borders restaurateurs & publicans will see increased trade. Under licensing laws, there is a requirement for the sale of takeaway alcohol that it must be consumed a minimum of 100 metres from the premises where the drink was originally purchased.

The Outdoor Dining Enhancement Scheme

To combat the effects of Ireland’s mixed weather on your business, you could benefit from a grant up to €4000. It is for shelter & outdoor dining infrastructure and you can be prepared for full reopening & ending of the 100 metre rule. You can get this government grant only if you have a business that serves food. The scheme gives you 75% ex VAT of the cost of equipment purchased / installed, up to €4,000 per applicant. Only items purchased after June 1st, 2020 & up to September 30th, 2021 are eligible. Local Authorities administer it so you would need to reach out to them to claim this, or get more information from your Local Enterprise Office.

Loans

BusinessLoans.ie will be able to assist businesses with loan quotes as your trade improves. We are monitoring the situation with alternative lenders and their appetite for lending. The rule of thumb has been if the business is not currently trading they’re reluctant to quote. The first finance option likely to be available is based on your card machine. The partner credit teams will see how you were trading before the pandemic and look at the trade you’re doing when you reopen and hopefully make an offer. Then all going well, will top up the finance facility as turnover increases as lockdowns further ease.

There are other loans that will become more available as trade increases, from simple unsecured loans to asset finance for perhaps a food truck. We’re hearing Local Authorities are more open to offering places to pitch and this could be an important revenue stream to pivoting hospitality businesses this summer.

Talk to us about your situation. We’re here for you to organise loan quotes on hello@businessloans.ie or call 01 55 636 55.

Brexit & the Irish Company that got Asset Finance for a €1 Million Machine

Last year BusinessLoans.ie assisted with an asset finance deal for an Irish manufacturing company that was forward planning for Brexit. They are in the glass industry and their supplier for jumbo sheets of tempered glass was UK based. While the current situation meant they felt they were paying more than they should, the situation was manageable. However, they had identified that the pain of Brexit moved this machinery purchase from a want to a need.

The Issues

The specialist manufacturer was in China and the business had already made one stage payment of €200,000 for the machine out of working capital. They needed finance fast because another stage payment was falling due and their bank were not on board. If they made the next payment out of working capital it would have hurt their business. The risk was too much for their own bank to construct an asset finance deal with a Chinese specialist manufacturer when the asset was not yet in Ireland and hence no collateral they could rely on. Also, this company knew what it wanted and their machine was bespoke. It was being constructed to their specification with European parts. Any asset finance underwriting team has to consider, if they are left on the hook for this in the event the deal goes sour, how can they quantify the resale value & find a buyer? It seemed the pillar banks didn’t have the specialist asset finance teams able to find a solution while the business was already committed to this project.

The Solution

BusinessLoans.ie reached out to one of the best alternative asset finance lenders in Ireland to get feedback on a solution. They too felt a big level of risk in making stage payments on an expensive and unusual asset coming from China however, when they dug a little deeper they found that the business had significant assets already on their balance sheet & located in Ireland. They laid out a plan to use those assets as collateral to finance the stage payments. The business owner was confident in his relationship with the manufacturer and was comfortable with the level of risk in making the stage payments. Eventually the machine was finished, shipped and got to port in Ireland. Then the asset finance company was able to switch the collateral to the new machine at port and away from the machines the business already owned. The business had their machine and only had to worry about making their monthly payments going forward.

If you’re in the market for machinery, vehicles, equipment or any capital expenditure talk to us. There are currently some excellent solutions available to Irish businesses. You can benefit from low SBCI rates from the Credit Guarantee Scheme and get what you need to trade stronger through Brexit, the pandemic and whatever else 2021 beholds for the Irish economy. Call the BusinessLoans.ie team today on 01 55 636 55.