Peer to Peer Business Loans in Ireland

When you need a business loan fast, alternative finance generally moves quicker than your bank. The best Fintech innovation in recent years has been peer to peer lending (P2P). So what is it? Essentially it’s technology that connects individual lenders with borrowers who need funds. It bypasses the bank system and in doing so cuts down on red tape that can make your wait for approval longer.

There are 2 primary options for applying for a P2P loan in Ireland. BusinessLoans.ie makes it easy for you to apply and get quotes to compare the best P2P business loan deal for you. Generally you will need to supply 2 years accounts, 6 months bank statements and your tax clearance certificate. Then the credit teams will review and give a grade of A, B, C or D and you find out what rate applies. You can expect it to usually range from 6% to 12% and over 1 to 3 years. However, higher risk companies can be considered, for example if they only have 1 year of accounts history. In that instance the rate could be around 15%.

So you may be thinking, those rates don’t sound so great! This is especially true when you compare it to some of the rates the banks advertise. However, most business owners I speak with have already been to the bank and have chosen to keep looking for a variety of reasons. They may say:

  • My bank is taking too long and I’ve a project that needs finance now

  • My bank gave me approval subject to conditions; I can’t fulfill them quickly enough

  • My bank has requested a lot of information and my accountant is too busy; besides I don’t want to outlay all that cash on accountancy work when I’m not 100% sure I’ll even get approval once I’ve given them everything they’ve asked me for

  • My bank has declined me

With BusinessLoans.ie we aim to get you a few business loan quotes you can compare and our good working relationship with the P2P lenders gives you your approval information generally within 24 hours. On top of this we have other potential options if P2P isn’t suitable. We’re happy to answer any questions you have. Click on the web chat now or call 01 55 636 55

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Business Loans For Ploughing Championships 2019 Asset Purchases

If you’re attending the Ploughing Championships this year and have an agribusiness you may be considering farm asset purchases. There are many options on show but when you decide on a machine, quad, tractor or otherwise you don’t need to go with the finance linked to the company selling you the asset.

BusinessLoans.ie can help you get a lot of the pre-approval work done for your purchase so you can have the peace-of-mind going in to your price negotiation that you’re not beholden to the finance terms and sometimes bargaining chip of the company selling you the asset.

We can reach out to multiple credit teams with a few simple documents from you along with a little bit of information on the asset you expect to purchase. Then you can get a strong indication of approval quickly and even the full approval locked in.

We are happy to talk over your options. Then if you’re happy we would like to see a recent set of accounts and six months bank statements. With that we can get the ball rolling. Call us now on 01 55 636 55 or interact with us on the web chat box in the lower right of this screen.

Wishing Irish farmers the best for #Ploughing19

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Getting a Business Loan When The Bank is Not Helping

Most business owners I speak with have already tried their bank. Sometimes they have simply been declined because their business hit some difficulties and the accounts are not too strong or they are near the limit on their overdraft facility. Other times the bank is taking too long and they need a quicker turnaround than the situation they find themselves in.

So what can you do? Here are a couple of examples of recent clients that can shed some light on potential solutions.

Machinery Refinance

John is a farmer whose business suffered badly with the heatwave in 2018. This affected his accounts and cash flow and he was struggling to get a loan approved. He identified an opportunity to buy an excellent breed of cattle from Denmark at a knock down price. A heatwave there affected the price of feed badly resulting in a sell off and this bargain appearing. He needed to act quickly.

John wanted a €50,000 business loan. Over the years he had bought a lot of machinery. Some were fully paid off and others were still on finance but were mostly paid off. We discussed potential options and settled on a secured business loan as the way forward. He put together a list of vehicles and machines stating the manufacturers, models and years of manufacture as well as amounts of finance outstanding. The partner credit team assessed this and was able to propose a loan facility over 5 years secured on the assets. John was then able to draw down the loan and get on with his business initiative.

Card Machine Finance

Mary is a small hotel owner in the west of Ireland. It’s a family owned business that’s performing well after a quiet number of years. The hotel was badly in need of a renovation and this would in turn drive more profitability however, the bank had said they were at the limit of finance that could be extended to them and no unsecured business loan could be made to facilitate the renovation.

Mary required a €100,000 business loan to upgrade and refresh the hotel rooms. As a busy hotel it had a large volume of card transactions. Mary was able to provide 12 months merchant statements showing average turnover of over €100,000 a month. We decided that a merchant cash advance application was the best way forward to get the funds quickly and the renovation done in time for the busy season. Mary was able to get a loan facility that would be paid back over a year. It had a flexible repayment that suited her seasonal business. It works by taking a small daily percentage of the card machine income. That means when it’s busy you pay back more but when it’s a quiet time of year you pay back less. The percentage is set with the aim of repayment within the year. Mary was happy with this and was able to draw down the funds within days.

So that outlines a couple of past clients we could help. There are many other solutions that can fit your needs right now. We are here for you 7 days a week to talk finance. Call us on 015563655 now?



90% of Irish Business Owners Can Save On Their Card Machine Charges With This New Service

Let’s see if we can save you money on something your business may already be using. That's your card machine and the charges you pay every month on your merchant services statement. We have partnered with Ireland's only independent merchant services consultants & brokers who have over 30 years experience in the banking and financial services area. They can identify savings for over 90% of clients they help and uniquely often without the need for a provider switch as it may be possible to simply amend your existing solution.

Key benefits in getting your review

  • Businesses in Ireland are paying large fees annually to acquiring banks for the ability to accept cards. Many of these fees lack transparency and are loaded with unexplained and hidden charges. Our partner works on behalf of your business not the bank. You can have proposals professionally evaluated from any provider in the market

  • You will find out if you have been overcharged and may be entitled to a refund or compensation from your provider

  • You will get a detailed independent audit to identify all areas where savings or security improvements can me made

  • You can have savings identified without always having to switch provider. Often savings can be secured from your existing acquiring bank

  • If you are currently waiting days for settlements you will no longer have to. You will have access to leading Irish, European & international acquiring banks with next day full gross settlement at the lowest possible cost

  • If you accept payments over the telephone "customer not present" transactions can be charged back many months after processing. Find out how to build layers of security in to your payment process and dramatically reduce your risk

  • PSD2 Regulations come in to force in this September and you will receive independent advice procedural or structural changes that may be necessary for your existing payment solution

Testimonial

"They professionally assisted our busy bar business to significantly reduce the cost of accepting debit / credit cards and ensured that funds were in our account on the very next day. We would strongly recommend that every business should have an audit carried out as the level of detail and expertise is sure to be an eye opener. Our experience is that you have all to gain and nothing to lose as they worked on our behalf in assessing and negotiating with a number of different banks. Highly recommended."
Grainger's Pebble Beach, Dublin 3

"They prepared a detailed audit for our business, identifying a number of serious issues even apart from transaction pricing. They assisted us in fixing all problems and sound fraud prevention advice has been invaluable to our company."
Merlin Properties, Dublin & London.

Next Step

So what are you waiting for? To get going we’ll need some merchant statements from you for our partner to conduct your review. If you're interested in learning more send us a message now or call us on 015563655


4 Things I Learned from an Irish CEO who Raised $750 Million for his Startup

This evening I went to an event and heard the story of Dómhnal Slattery, CEO of Avolon. He started in 2010 with Ireland’s biggest ever funding round for a startup. He managed to raise $750 million venture capital – Ireland’s biggest VC deal ever. Now Avolon have turned that $750 million into a $30 billion balance sheet today. They have 958 aircraft. If you put them all in a row you would need to complete a marathon distance from start to finish! They have made Ireland in to a major player in the aircraft leasing sector worldwide.

Here are my key takeaways of the evening and suggestions how these can apply to an average Irish SME owner.


1. You can raise money when the economy is down.

It was 2010 and we were in the midst of a worldwide recession. On top of this a volcano erupted in Iceland (Eyjafjallajökull – try say it aloud!) It grounded flights all around Europe due to all the ash clouds drifting over the continent. This negativity in the aviation industry didn’t deter Avolon and they cracked on and raised a tremendous amount of money. Then in 2011 there was a widespread perception that the Euro was going to go bust. Avolon spoke with smart investors who could see the bigger picture and invested $300m at a critical point for the company.

From the above examples, you can see that by speaking with the right lender you can find success. Businessloans.ie speaks with many business owners who may not have had success in getting loan approval from their bank. These days there are many alternative finance providers who can help. You just need to speak to the right one and we can help get your loan approved with the right partner.


2. Company culture has to be a top priority even if it means getting rid of important people.

Dómhnal said “in business you rarely leap forward if growing organically.” At one point Avolon acquired CIT Group aircraft leasing business and it had around 150 employees. Avolon is big on values.

Here’s what they have to say on the matter: “Our corporate values - embodied in the acronym TRIBE (Transparency, Respect, Insightfulness, Bravery and Ebullience) - form the basis of how we run our business, how we interact with one another and with all of our stakeholders. Our TRIBE is who we are and what unites us as a company.”

Within one year of acquiring CIT Group aircraft leasing 130 of the 150 original employees were gone. If you stick with your values you need to be willing to risk losing valuable people who don’t fit them.


3. You can manouvere your business out of a sticky financial situation and maintain access to credit.

Avolon listed on the New York Stock Exchange. This was a huge milestone for an Irish company. They listed at $20 a share. Then 13 months later a company called HNA offered to take a controlling stake at $31 a share. This was a $1 billion premium on the value and the board accepted this excellent offer. HNA had lofty goals for expansion and over-extended themselves and became cash-strapped, risking the very existence of Avolon. They had to find a solution and they worked out a deal with Japan's Orix who bought a $2.2 billion stake in Avolon. This deal enabled them to upgrade to a BBB- rating and have access to the US capital markets to sustain themselves.

So what can be learned from this example? Businessloans.ie speaks with business owners who have put themselves in a sticky situation by leaving it too late to get a business loan. They start missing payments and their bank statements are looking too bad for a credit team to pass. It’s so important to do some forward planning and get your loan while the going is good.

4. Give back.

Avolon already has an enviable corporate responsibility policy. “CARE enables our employees to take the lead in collaborating with local and international partners to promote innovation, social development, education and meaningful change in the world. The CARE intiative is delivered under four pillars: Community, Avolon Care Days, Resources and Education / Entrepreneurship”.

This evening I heard Dómhnal introduce Project i. This is a white paper outlining a bigger-picture initiative on how Ireland can build a better start-up scene. You can download it here

They wanted to understand how Ireland compared and contrasted with the best startup eco-systems in the world. To do this Avolon took many of their best employees off the job to meet stakeholders around the world. They learned from these best-in-class startup eco-systems and make recommendations under the headings Education, Early Stage Funding & Support, Acceleration, Venture Funding and Growth & Exit.

This project really is a BHAG (Big Hairy Audatious Goal) and it’s going to take major players throughout our society to get involved. But what can you do as a small business owner? I would suggest looking at your own company culture and corporate responsibility. Start small and do what you can in your locality. Take a small step towards giving back.


I would like to thank the Irish International Business Network and Grant Thornton for making the event possible.

What I've learned so far about business mentoring

I started out on my Businessloans.ie journey in October 2018 with the desire to make it easy for Irish business owners to get approved for alternative finance. There have been so many different challenges that have come up in getting the business going but as time goes on I’ve been working on a more solid plan of action.

I did some psychometric testing and it gave me great insights in to myself. One thing I’ve had to accept is that I’m not suited to every role and task in the business. On the flip side, it’s helped me play to my strengths. I got support with a pain point (administration) leaving me free up more time to focus on what I enjoy: working on finding new business. Another interesting thing about this activity was how it helped me adapt how I communicate with people with different personality types than me. I’m quite sure a finance deal I recently closed wouldn’t have happened it it weren’t for this.

I’ve been getting private coaching sessions from The Alternative Board (TAB). Business leaders such as Steve Jobs, Bill Gates and Richard Branson have all had mentors. In fact, Branson said “If you ask any successful businessperson, they will always say they have had a great mentor at some point along the road.” Closer to home, Irish business people like Brody Sweeney of Camile Thai uses TAB. This coaching is helping me formulate my goals and most importantly keep myself accountable and on track.

Yesterday I sampled my first TAB Board Meeting. Business owners get together and use their collective minds and experience to overcome their individual challenges. In short, it worked like this. The business owner described the biggest challenge they were having in their business. Then other business owners were encouraged to ask open ended questions to get more clarity on the issue. There was a facilitator to keep everyone on track. After everyone’s questions were answered it was time to make suggested solutions. The business owner could choose to take some on board and give feedback on results in the next session. Taking this action results in TAB members profitability being 2.5 times that of non-TAB members.

If you’re a business owner potentially interested in learning more about this, feel free to get in touch with me. I’m happy to answer any questions.

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Wealth Management Tips For Small Business Owners

You may have any number of aspirations, as a small business owner. Maybe you want to just stay small and lean, at the helm of a business that supports your lifestyle and nothing more. Or perhaps you see yourself on a mission to take your company from a small business to a major player in your space.

Regardless, everyone needs a little guidance and inspiration. Here we share our top tips for managing wealth as a small business owner.

1.   Surround Yourself With Positive Influences

If you own a business you have a need for experts in your life.  You hire accountants, lawyers, consultants, and bankers to help you with your business. And even if you're just starting out, it's essential to split up business and personal finances

2.    Plan Accordingly

In business, action and result are separated by the dimensions of distance and time. Very often, the cause of the action and its effect are not connected. 

Good strategy and planning reduce the risk of making uninformed decisions. It is about knowing what you do now in the context of what you are trying to achieve in the future.  If you have a clearly thought through intention, there is a better chance that you will achieve your desired results.

3.    Don't Hold Excess Capital In Your Business

Properly managing cash flow and working capital is essential for the success of any business. While larger companies may have access to more financial resources, small businesses’ resources are often limited. While holding as much cash as possible seems like a logical solution to potential cash flow problems keeping lots of excess cash on hand may actually be detrimental to your business. Smart business owners try to strike a balance between maintaining necessary cash reserves and hoarding too much cash.

 4.   Be Prepared For Rough Patches

Hitting a rough patch is something most business owners experience—it’s how you react that matters.You have to step up and keep your business afloat.

 5.    Recognize The Full Worth Of  The Unique Position Of Your Freedom To Build And Create And Pivot.

Focus on building efficient systems in your business. As the pilot of your rocket ship, you have the free reign and creative license to steer your mission and your crew towards new possibilities.

If your business could use some extra working capital to help grow call 01 55 636 55

Financing Options for Irish Business Owners

As a small-business owner, you should understand the financing options available to you to help grow your company. Many new small business owners have difficulty accessing capital through traditional banks to start or grow their firms. Small business lending companies can help to provide financing even though they have challenged credit. There will be a premium charged through interest rates and other fees for access to capital but being granted necessary funding is most important to owners and lenders have to balance risk with reward. Many small businesses have begun seeking alternative finance to meet their smaller financing needs. Peer to peer lending is becoming more commonly used by small firms to finance projects that will help their companies grow.

So you may ask, why don’t I just use my cash flow to fund the business? When you fund a business yourself, it can be wonderful if things work out, but disastrous if they don’t. If you don’t get outside funding, those growth opportunities are limited by the size of your own funds and what your business produces in cash flow. Slow, steady organic growth may be fine for some businesses, but for others, particularly in fast-moving areas like technology, it can mean ceding the advantage to your competitors.

Bank lending is still tight. Research shows that for the first quarter of the year, gross new lending only increased 2.7 per cent over the previous 12 months, driven by primary industries (11 per cent) and hotels and restaurants (3.7 per cent), with declines in other sectors, according to SME market report from Central Bank.  According to the research conducted by the Red C 60% of SMEs were using personal funds to invest in growth in their business. 

It’s important to note that, while interest rates have fallen dramatically since 2008, the average revolving credit rate has actually risen. Alternative lenders have been able to leverage their superior operating efficiency to offer more attractive pricing to consumer and small business borrowers while also delivering a superior service experience.

Here are three major benefits of alternative financing that you need to know, and that banks simply can’t deliver:

  1. Banks take several weeks — or sometimes several months — to review loan applications.

  2. There are many other factors to consider, and credit scores are just one piece of the puzzle. That’s why we routinely approve borrowers who have impaired or bad credit.

  3. Alternative business loans fund quickly, which is one of their biggest advantages. In many cases, you’ll hear back from your lender within 24 hours, and get your loan funded within 48. This is an ideal solution if your business needs cash quickly to take advantage of a business opportunity or get over a short-term cash flow hump.

The flexible and affordable funding solution you want, need and deserve is via alternative finance. BusinessLoans.ie is here to help you navigate alternative finance to get the best finance deal for your business. Call us now on 01 55 636 55

businessloans.ie - WHAT WE DO.

If you're a business owner your usual port of call when you need finance is to look to your bank. Yet, even as we hear positive signals in the media about the Irish economy, the stock of SME credit available in Q1 2017 was down 8.2% compared with Q1 2016. Small and micro-sized companies are worst hit by the increased bank rejection. Even if the bank does approve you for finance, the process can be very time-consuming and stressful. You may endure requests for reams of documents and get eventual approval but subject to additional security such as signing over your family home.

So what can you do about it? The great news is that there are alternative finance options such as private financiers and P2P lending. Many of these options bypass the behemoth bank bureaucracy and replace it with a common-sense approach. You can expect a quick decision based on supplying a couple of easy-to-get documents. Generally you can go the unsecured route and not have to worry about paying penalties if you want to pay your business loan back early. Businessloans.ie is partnered with the best alternative finance options in Ireland today. If you have a business project in mind we will be happy to listen, answer any questions you have and connect you with the best finance deal to grow your business.