Business Loans for Consolidating Debt in Ireland

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.

Business Loans & Recurring Revenue in Ireland

Did you know that you can release cash flow from future recurring revenue? There is a new finance solution that enables Irish businesses to get working capital from upcoming revenue & on a revolving basis. You can release up to 70% in advance, month after month.

BENEFITS FOR YOUR BUSINESS

• Create a recurring revenue stream

• No personal guarantees

• The cost is agreed in advance

CRITERIA TO ACCESS FUNDING

• Your business is trading at least a year

• You have a minimum annual turnover of €1m

• You have an average monthly turnover of €100k

If recurring revenue finance is of interest we’re here to guide you through the process. You can be onboarded in 48 hours & have peace of mind to release working capital automatically every month. Talk to the business loans team today on 01 55 636 55 or web chat via the portal in the bottom right of this screen now. We’re here to help, 7 days.

Business Loans & Personal Guarantees. Covid19 Update.

Terry Bell and the team at Bell & Co. made a webinar to outline how some financial institutions are dealing with personal guarantees in covid times. This may be useful for any business owner who is worried about the implications of a PG they may have signed should they encounter difficulties making repayments. It outlines the basics such as explaining the security, contingent liability and more before going in to more depth. Please note they serve Ireland & the UK. Some content doesn’t apply to Irish PGs.

3 Things You Can Do to Improve Your Chances of Loan Approval

If you’re looking for business loans in Ireland during Covid lockdown level 5 you may be overwhelmed with the number of supports, grants, government-loans and alternative finance options. It’s best to seek expert advice from your accountant or business advisor. If budget is a concern the Local Enterprise Office has great advice and mentoring too. BusinessLoans.ie is here to get you business loan quotes quickly & we never ask you for a fee. It’s best to take action before things get bad. Ensure you have enough working capital. Many loan options are flexible or don’t have an early repayment penalty. This means you can incur minimal expense by ending the loan early, once a time of business pressure has passed.

BusinessLoans.ie has three top tips for getting that loan:

1. Act before your bank statements get too tight.

2. Keep a steady minimum level of cash in the account. Don't be caught out by the number of days a in a month that a direct debit would fail. Having a bank overdraft facility in place is not a bad thing because it can show more affordability to make loan repayments.

3. Directors; don't pay yourselves excessively. It sends out the wrong signal to your lenders.

We are here for you 7 days and can get multiple loan quotes for you to compare. Use the web chat box in the bottom right of this page or call us on 01 55 636 55 now.

Asset Finance For Smaller Assets in Ireland

BusinessLoans.ie can now help with asset finance quotes for smaller items, €1000 and up. You get fast approval for leasing assets that can have tax deductible benefits & it’s easy to budget. Approval is definitely easier to get than cash loans, especially in the current covid climate we’re in. So if your business needs assets to help you add revenue streams talk to us today?

We can assist with items for businesses in:

• Construction or any businesses that need machines

• Medical & Aesthetics

• Vets

• IT, Telecommunications & Office

• Fitness

• Catering

To qualify you need to be currently trading with cash flow to meet repayments over a term of up to 60 months. Currently you might be limited to around €40k as a maximum with this solution however, we have other asset finance options for higher amounts. Call us now on 01 55 636 55

A Seasonal Liqueur Business Toasts an Invoice Finance Solution

This week BusinessLoans.ie helped a client in the drinks industry. They make a liqueur that’s especially popular around Christmas, requiring extra working capital to ramp up production to serve their distributors across Ireland, Europe & the USA. They ultimately needed extra funds for October, November & December. They looked at traditional invoice finance options but were put off by ongoing fees throughout the year when they were not going to be using the facility. We discussed one-off invoice financing with them. This would enable them to “cash in” invoices when they need to & without the commitment of an ongoing solution.

So how does it work? Essentially it enables you to release cash trapped in invoices & speed up your working capital cycle. You can pick and choose which invoices to fund 80% payment in 24 hours.

BENEFITS FOR YOUR BUSINESS

• No personal guarantees or additional security – funding decision based on the debtor

• No long-term contracts, no onerous paperwork

• Multiple currencies supported

• Fast decisions, fast funding & simple process

• Affordable and flexible finance

• Bad debt protection

CRITERIA TO ACCESS FUNDING

• Your business is trading with limited companies

• You have insurable debtors

• Your invoices are between €15,000 and €2,000,000

• Your business has been trading more than 2 years

• Your turnover is more than €500,000

If one-off invoice finance is of interest we’re here to guide you through the process of getting your debtors approved & uploading invoices. You can then receive 80% now and a final settlement when your debtor pays. Talk to the business loans team today on 01 55 636 55 or web chat via the portal in the bottom right of this screen now. We’re here to help, 7 days.

Digital Transformation & e-Commerce Finance in Ireland

When you see headlines like “Fashion retailer ASOS quadruples full-year profit to £142m” in the midst of the Coronavirus Crisis & Brexit it’s clear that businesses who are adaptive & prioritising digital are successful. This is a story that’s been playing out even before Covid times. A year ago we were writing about ASOS and how they contrasted with their high-street competitor Arcadia Group, struggling with high rents. They own Topshop, Burton, Dorothy Perkins and Miss Selfridge. “Business costs such as high rents are a factor but the key issue is how businesses have tackled online sales. The winners have invested in IT and logistics. Let’s compare Topshop (spend €50 per order for free delivery and returns) to Boohoo (pay €11.99 and get unlimited delivery and returns for a year). Boohoo’s sales soared 27% this year while Arcadia is clutching at straws to make agreements with landlords and save the business.”

So what does all this mean for an Irish retail SME with so many competing priorities & struggling to survive? We can take some inspiration from Blanaid Hennessy, owner of the fashion and homeware store Folkster who had to make hard decisions swiftly in the face of the Covid-19 crisis. Folkster closed down their Temple Bar shop, decimated by the lack of tourist footfall. Instead they are concentrating on a Christmas pop-up shop in Dundrum Town Centre that will have great footfall, build brand awareness, drive traffic to their eCommerce site (with cheap delivery) after the end of the pop-up shop & encourage fans in destination shopping to their Kilkenny outlet.

Wherever your business is at there are options out there to implement change:

1. Trading Online Voucher Scheme

You can get €2500 towards web design, building your online presence etc. for free if you have a business that’s been open at least 6 months. On top of this your Local Enterprise Office and give you lots of training and support around building an online presence.

2. Pointy

This is a great way to get more people in to your store. You plug a pointy device in between your point of sale & barcode scanner, carry on business as usual. Over time your scanned products will appear on your Pointy web page and your products start appearing in Google search results. You also get found on Google Maps by people doing searches for your products in your location.

3. Popertee

If you need a pop-up shop you can find a lot of options on this site. However, landlords can be approached directly and propositioned for short-term arrangements. There is plenty availability and they’re motivated right now.

4. Need a bigger digital transformation? Ask us about finance.

It’s not cheap to have a slick online sales presence and once you have done your homework on what it will cost for your business ask us how to find finance to make it happen or check out available supports in our list.

A few quick alternative business finance suggestions include:

• Unsecured loans - If you have 2 years accounts in profit simple unsecured loan quotes are possible.

• Merchant Cash Advance - If you use a card machine, Stripe or PayPal and have monthly sales from €4000 upwards you could get a simple loan to help with working capital, stock & even digital advertising.

• Asset Finance - If you want a better point of sale system, computer equipment or many things that go in to a fit-out we can organise asset finance quotes.

Ask us about your finance quote now. We’re generally available 7 days from early morning to late at night. Call 01 55 636 55

Budget 2021 – How it Affects Business Owners in Ireland

The Irish Budget 2021 was the biggest yet and designed to get Irish business through Brexit and COVID-19. The Minister of Finance, Paschal Donohoe said “Budget 2021 has been prepared against a background of extraordinary uncertainty regarding near-term economic and budgetary prospects. Here are the key points:

• A new scheme for businesses which closed because of Covid-19 will provide a maximum of €5,000 per week - payments based on 2019 average weekly turnover. Effective from today until the end of March next year, with the first payments in mid-November 

• Debt warehousing provisions for SMEs will be extended for a period of a year with no interest. A €30 million fund will be administered through the Ireland Strategic Investment Fund 

• VAT rate reduction from 13.5% to 9% for hospitality sector 

• Extension of the commercial rates holiday 

• New Covid Restrictions Support Scheme (CRSS) 

• Extension of the Employment Wage Subsidy Scheme through 2021 

• €3.4bn Recovery Fund  

• €10.1bn infrastructure spending in 2021 

• Increasing Earned Income Credit up to €1,650 for self-employed – the same as the employee tax credit for PAYE workers 

If your business requires finance to help with your business budget for the year ahead, we’re here to help. Call 01 55 636 55 now.

Business Loans for Retail Acquisition and Fit-Out in Ireland

Today we are pleased to announce we assisted our client with finance towards a new business acquisition and fit-out. This was a return client following a similar facility earlier this year. Their own bank was not assisting but as a pharmacy chain with significant monthly sales by card BusinessLoans.ie got their approval for a merchant cash advance from our 4.7 out of 5 Trustpilot rated partner.

This solution works for a variety of businesses in retail, hospitality, restaurant, takeaway, cafe & bar (currently trading). Talk to the business loans team today on 01 55 636 55 for #fast #finance #quotes

Business Loans in Times of Economic Uncertainty

With headlines to traumatise the Irish economy such as “Covid-19: NPHET recommends State moves to Level 5 restrictions for four weeks”, it makes me think of something my business mentor told me, about borrowing money when you don’t need it & being ready for unexpected situations. Let’s look in to it?

How much working capital does a small business need?

The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating cycle, and the business owners’ goals for future growth. However, while very large businesses can get by with negative working capital because of their ability to raise funds quickly, small businesses should maintain positive working capital figures.

Assuming you passed the debt-service ratio test, when should you borrow money for your business?

You should borrow when you are confident that you can make more profit as a result of borrowing money. Estimate what your sales and profits are before borrowing and what they will be after you borrow.

What is a good debt-service ratio?

A debt-service coverage ratio of 1 or above indicates that a company is generating sufficient operating income to cover its annual debt and interest payments. As a general rule of thumb, an ideal ratio is 2 or higher. A ratio that high suggests that the company is capable of taking on more debt.

In times of uncertainty or when a business really needs money is generally the time when underwriters will class the situation as high-risk and decline an application / apply a higher rate. That’s why businesses need to be sufficiently financed to handle shocks. Hopefully that working capital comes from retained earnings however, there are times when you will need that from supports, grants or debt. Always speak with your CFO or accountant to advise you on what’s right for your situation. There are a number of government-backed supports you can read about in our post here. Or if you want to look at fast finance quotes from alternative lenders we can assist. You can get an idea of the different loan types in our post here. We’re here for you 7 days to talk finance on 01 55 636 55.

References:

https://www.irishtimes.com/news/ireland/irish-news/covid-19-nphet-recommends-state-moves-to-level-5-restrictions-for-four-weeks-1.4371810

https://corporatefinanceinstitute.com/resources/knowledge/finance/debt-service-coverage-ratio/

https://www.investopedia.com/ask/answers/102915/how-much-working-capital-does-small-business-need.asp