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 forecasting for 2024

Forecasting your ability to secure cash flow loans and asset finance is crucial for effective financial planning for 2024. Here are some steps and considerations to help you with this process:

1. Assess Current Financial Health:

• Review your current financial statements, including income statements, balance sheets, and cash flow statements.

• Identify key financial ratios to understand your business's liquidity, profitability, and solvency.

2. Cash Flow Projections:

• Create detailed cash flow projections for the upcoming year. Estimate your monthly inflows and outflows.

• Consider different scenarios, such as best-case and worst-case, to account for uncertainties.

3. Loan Requirements:

• Clearly define the purpose of the loans and asset finance you are seeking. Whether it's for working capital, equipment purchase, or expansion, having a specific plan will strengthen your loan application.

• Understand the amount you need and the repayment terms you can comfortably manage.

4. Creditworthiness:

• Regularly monitor and maintain a good business credit score. Lenders often use this to evaluate your creditworthiness.

• Address any outstanding debts or issues that could negatively impact your credit score.

5. Relationships with Lenders:

• Strengthen your relationship with existing lenders. If you have a good history with them, they may be more willing to provide financing.

• Explore local banks and financial institutions, as they may have a better understanding of your business environment.

6. Asset Valuation:

• If seeking asset finance, provide accurate valuations for the assets you intend to finance. This adds credibility to your application.

7. Financial Documentation:

• Ensure your financial documentation is in order. Lenders will likely request financial statements, tax returns, and other relevant documents.

8. Government Support Programs:

• Explore any government support programs or grants available for small businesses in Ireland. These can provide additional financial assistance.

9. Professional Advice:

• Consult with a financial adviser or accountant to ensure your financial projections are realistic and well-supported.

10. Stay Informed:

• Keep an eye on economic and industry trends. Changes in the business environment can impact your ability to secure financing.

11. Contingency Planning:

• Have a contingency plan in case your initial financing options do not materialize as expected.

12. Continuous Monitoring:

• Regularly review and adjust your forecasts based on actual performance. This allows for timely adjustments and better decision-making.

By carefully considering these factors, you'll be better positioned to forecast your ability to secure cash flow loans and asset finance for your small business in Ireland. Remember that financial planning is an iterative process, and staying proactive and informed will contribute to your success. BusinessLoans.ie can reach out to lenders to see how much credit might be available. Call us today on 01 55 636 55 or email hello@businessloans.ie.

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.

Rupert Hogan, MD BusinessLoans.ie talks finance on Dream:Reality podcast

Rupert Hogan, MD of BusinessLoans.ie had the pleasure of talking finance with Alison McMurtrie on Dream:Reality, the podcast providing practical tips for business owners & the challenges they face.

Alison runs Idunn Consulting and can help your business perform better.

Six tips for getting business loans from banks in 2022

Speaking with your bank about business loans can be tough as we continue with pandemic issues in 2022. It’s best to get all your ducks in a row beforehand. In the words Abraham Lincoln; “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Here are some quick tips that may help:

1. Get expert advice. Your accountant or an experienced financial adviser will be useful here. If budget is a concern there are supports from your Local Enterprise Office, Enterprise Ireland & more.

2. Assess where your business is currently. Weigh up the strengths, weaknesses, opportunities and threats. Many businesses are pivoting completely or you may just need to focus on a particular area that’s working right now.

3. Be frank with your bank. When you speak with a bank in black & white terms, more focused on the facts & figures you should find them most receptive.

4 . Fail to plan; plan to fail. Write it down in a budget with a clear, concise plan of action detailing realistic forecasts & projections. If there are many variables in your forecasting consider presenting a best-case & worst-case scenario.

5. Hard talk. Be ready for your conversation with the bank & for difficult questions. Have your answers prepared.

6. Consider alternative options. If you have tried your best with the bank but they’re not on board there are alternative business finance options that may work.

The BusinessLoans.ie view is to engage with your accountant, advisers or government agencies & prepare. If the bank declines you don’t give up. Ireland has many alternative business finance options. We can assist with fast finance quotes & we’re here for you 7 days. Email hello@businessloans.ie or call 01 55 636 55.

Recent deal: A kitchen renovation company & a covid loan

BusinessLoans.ie is celebrating another successful deal. It was for a kitchen renovation company that specialises in respray and restoration of kitchens, baths, worktops and more. During the pandemic restrictions they took a considerable hit to their business. Now they were busy. Like many in construction related industries they were enjoying a renewed uplift in bookings. The business wanted to update the fleet of vehicles, machines and have some working capital left over. A requirement of €100,000 was identified. When they spoke with us, they had already engaged with their bank. They found the requests for reams of documents too much to deal with; especially business plans and detailed financial modelling when their accountant was so busy with pandemic issues and filing deadlines. They were looking at alternative finance options that were faster.

BusinessLoans.ie identifed a loan quote under the Covid-19 Credit Guarantee Scheme with a non-bank lender. Our client was happy to only have to provide minimal documentation such as recent accounts, bank statements and a tax clearance certificate. They were approved & funded in days at a low rate and didn’t have to worry about a personal guarantee or early repayment penalty. Does your business want a fast finance quote? Get in touch today. Email hello@businessloans.ie or call 01 55 636 55.

Recent deal: An agri machinery manufacturer gets a €250,000 Covid loan

BusinessLoans.ie is celebrating another successful loan client. It was an agricultural machinery manufacturer whose work was hurt by the pandemic. Their turnover was down due to Covid restrictions as well as the worldwide supply chain issues pushing up prices. They were frustrated with the level of information required for loan applications with their bank and asked us about alternative finance quotes.

BusinessLoans.ie identified a loan quote under the Covid-19 Credit Guarantee Scheme with a non-bank lender. They were able to get approved for their €250,000 quickly, at a low rate and without a personal guarantee or early settlement penalty, over a three year term. They were happy and were able to get on with their work. Does your business want a fast finance quote? Get in touch today. Email hello@businessloans.ie or call 01 55 636 55.

Recent deal: A tile retailer in need of stock

BusinessLoans.ie is celebrating helping another client. With the global issues in shipping, it’s put a strain on Irish businesses keeping enough stock in their warehouses. This was the same case for a tile retailer whose working capital was tied up in shipping containers in transit. They needed to make bigger orders and they didn’t have access to acceptable credit terms from their suppliers. While this business had some issues on their accounts as a result of the pandemic, they were enjoying better margins on their product with the general price increase in construction materials.

A finance quote opportunity was identified because they had a volume of retail card sales. Our lending partner secured over €40,000 in stocking finance for them with an option to top them up again in the coming months. They were happy. Does your business need a loan quote? Talk to us on 01 55 636 55 or email hello@businessloans.ie.

Getting well capitalised before pandemic supports end

As we leave the summer months behind many business owners will have more time to plan for their business initiatives ahead. We are also getting to the stage where the Government will be phasing out supports. If you forecast that this could hit your cash flow and may need some working capital finance there are still some good options out there such as the Covid-19 Credit Guarantee Scheme. This can give you working capital financing, invoice financing, hire purchase, leasing and more. All at low rates and without personal guarantees. It’s always a good idea to do a health check on your business before seeking additional financing. Your accountant will be invaluable here. If financing is the right choice, BusinessLoans.ie is here to organise fast finance quotes 7 days. Email hello@businessloans.ie or call 01 55 636 55.