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

The Irish business lending scene is very fluid at the moment with pillar banks & alternative lenders having access to an ever changing range of SBCI, government-backed loan options. However, the lenders can only work within their lending rules. If your business has imperfect accounts & bank statements you could get a decline, especially for the straightforward unsecured loan options. In this situation, if your business owns assets, a secured loan could work.

There are two primary types of secured loans. The first and easiest is if your business has vehicles & machines, less than 12 years old. They need to be in full ownership or have little outstanding finance. BusinessLoans.ie can get our partners to see if a secured loan is possible and, if so, what’s the maximum available. The rates can vary depending on the risk assessment and it costs nothing to get the approval information. You could also qualify for discounted rates under the Credit Guarantee Scheme. If your business expects a hit in turnover or net profit due to Covid-19 of 15% or more then you should be able to get access to lower rates. Loan sizes of €20,000 and upwards, depending on values of assets, can be facilitated.

The second type of secured loan is based on business-owned land & buildings. While you can expect low rates, there is more complexity and therefore more expense in constructing this type of loan. This is because of set legal fees, quantity surveyors & other professionals involved in getting these loans to approval stage. Loans don’t make sense for lower amounts. The business needs to have a requirement and equity for amounts of €250,000 and upwards for property-backed loans through our partners.

BENEFITS FOR YOUR BUSINESS

Approval for businesses that have assets
Release working capital that’s otherwise locked up
Less checks from lenders on purpose of loan

KEY CRITERIA TO ACCESS FUNDING

Your business has vehicles & machines of value
Your business has land & buildings with equity
Your business passes the credit check

BusinessLoans.ie is here to help get your secured loan quotes built. Best of all we will never ask you for a fee. We are available 7 days to assist with straightforward unsecured loan quotes where possible & if for any reason the secured loan route will work best for your business initiative, you can get fast approval feedback from the best panel of lenders serving Irish business. Call us on 01 55 636 55.