If you’ve been researching options for business loans in Ireland, you might relate to one or more of the following:
In this article, we’re going to detail your options if you’re looking for a business loan in Ireland, plus a couple of solutions that might work better for your business: revenue based finance and line of credit.
If you’re ready to discuss the funding option that might work best for your business now, reach out to us to get started.
If you’re searching for business loans in Ireland and trying to understand what options are available, you might have already tried talking to your bank to secure funding and are looking for alternatives.
In Ireland, the options available to you if you’re looking for business loans are:
Here are the pros and cons of each option:
Standard business loans can work well for businesses, but certain business loan alternatives could work even better depending on your funding needs: revenue based financing and business line of credit.
Here’s how they work, and how they could help your business grow:
Revenue based finance (RBF) is a way of accessing the untapped source of capital in the future contracted and non-contracted revenue in your business. A provider of RBF gives your revenue a value, which is converted to a working capital funding line you can use to scale your business.
RBF is ideal for subscription-based or SaaS businesses – or any businesses that have customers and recurring contracted and non-contracted revenue but don’t have tangible assets.
If you wanted to apply for financing from your bank, for example, you’d usually give them your projections and get a short-term loan based on their assessment. You might then want to renegotiate lower repayment loan terms if your business doesn’t perform as forecasted. Alternatively, you might want to extend the facility to take advantage of business growth opportunities. But that’s not always possible with a bank loan.
In contrast, revenue based finance is based on your future cash flow. It’s connected to the ebb and flow of your business revenue, which means your repayments can decrease or increase depending on your revenue. This isn’t possible with other funding options, like a short-term loan, for example, which is a fixed amount with fixed repayments.
How does RBF work in practice at Financefair? We start by looking at your projected income for the next 12 months. Based on those figures, we can offer you up to 70% of your next three months’ revenue or up to 20% of your Annual Recurring Revenue (ARR). We can then advance the funds on a quarterly or monthly basis, and adjust the funding based on how much your revenue grows.
Check out our guide to learn more about revenue-based financing and how it works.
RBF could be an ideal solution for your business if:
Find out how Zeus Scooters used RBF to leverage up to 70% of their future ARR to buy scooters, allowing them to expand into new territories and grow their business: Zeus Scooters.
A line of credit (LoC) is a type of working capital loan that gives the flexibility of an overdraft. With a line of credit, you can draw down instant working capital when you need it.
Key events in the business might prompt you to use funding from a line of credit. LoC is useful if you want to make the most of an opportunity for your business but need additional funding quickly to do so. An example might be needing to place a bigger-than-average bulk order of stock so you can fulfil a new contract or get a discount.
Why choose a line of credit over a traditional bank overdraft? Line of credit providers can usually offer businesses more funding than a traditional bank. At Financefair, for example, we can offer up to €250,000 per 12 months.
LoC facilities are also much more flexible than bank overdrafts. If you have an overdraft or short-term loan with a bank, you’d need to fill out a new application if you wanted to extend your funding. With a LoC, it’s easier to arrange an extension to access more funds.
Accessing the funds from a line of credit is straightforward once your facility is in place. You don’t have to divert the payments from your customers to a separate bank account as you would if you were funding your business with invoice financing. Once you’re ready to draw down, the funding comes straight into your bank account as a bank transfer.
Line of credit could be a good fit for your business if:
Want to know more about line of credit? Explore how a solar panel company used a business line of credit to grow their business.
When you choose to work with Financefair for your business funding, you’ll get:
Our experienced team and efficient technology enable us to give you a decision on your funding application within 24 hours.
Here’s the timeline:
Firstly, fill out the application form. You’ll hear back from us within 24 hours.
We’ll onboard you to our platform, where your funding will be available to access in 24 hours.
We’re able to arrange your business finance quickly because our technology and data analytics give us an accurate understanding of your circumstances and funding requirements. This makes for a speedy decision.
As well as that, our team has decades of financial services experience. We spend the time with you to make sure we understand your business needs, meaning we can evaluate and approve applications effectively.
When you first reach out to us, we’ll have a discussion about which funding solution works best for you.
For example, experience has taught us that e-commerce businesses usually grow more efficiently and effectively using Revenue Based Finance (RBF) than short-term business loans. This is because RBF makes it easier for businesses to quickly access funds to take advantage of the opportunities that come their way. With a business loan, requesting more funds is usually not a quick process.
Here’s what else you should know about our financing products:
Our pricing structure is transparent, which means you won’t get hit with any hidden costs. Your fee is determined at the outset when we make our indicative offer to you, and it will be based on:
Three fees apply:
The all-in cost of funding with us typically ranges from 0.75% to 1.50% per 30 days. This depends on several factors including the product type, term, and credit quality.
To check how much RBF could cost depending on your Annual Recurring Revenue, try the calculator on our revenue based financing page.
Getting started with Financefair is simple:
1.Apply: There are two ways to get started:
a. Contact us directly. We’ll have a chat about your funding requirements and let you know if we’re able to offer a suitable funding solution for your business. Call +35315252486, email firstname.lastname@example.org, or book an appointment with a team member.
b. Complete a funding application form.
2.Discovery call: This lets us understand:
a. Your debtors and revenue streams
b. Your business model and pipeline
c. Your existing debt, if you have any
3. Offer: We’ll present a proposal. This will happen within 24 hours if you’re applying for LoC or after we receive your cash flow projections if you’re applying for RBF.
4.Onboard: After you accept our offer, our team will onboard you onto the platform and run the KYC and AML identity checks.
5. Funding: When you’ve been onboarded and your facility is set up, you’ll be able to access your funding within 24 hours.
For us to be able to fund your business, the following must apply:
In this article, we’ve considered some of your options if you’re looking for a business loan in Ireland, and why revenue based financing or a line of credit facility could be a better option for your business.
If you appreciate transparency, flexibility and a straightforward approach to finance, and your business model means you’ve been unable to find suitable funding before, let’s talk about how we can help you.
Reach out to us to get started.