What Astatine’s growth journey reveals about planning ahead, maintaining control, and putting the right funding structures in place before growth demands them.

 

One of the biggest misconceptions in business growth is that funding becomes important when cash starts running out.

In reality, the most successful scaling businesses think about funding much earlier than that.

By the time additional funding is needed, the decisions that depend on it have often already been made. Hiring plans are underway. New contracts have been secured. Expansion targets have been agreed. Operational commitments are already in motion.

At that point, funding is no longer part of a growth strategy. It becomes a race against time.

The companies that scale successfully understand a different principle. They treat access to funding as part of the infrastructure that supports growth, not as a reaction to a future problem.

This distinction may seem subtle, but it often determines whether a business is able to capitalise on opportunities or is forced to delay them.

The mistake many growing businesses make

Many businesses approach funding reactively.

They focus on revenue targets, sales pipelines, operational delivery and customer acquisition. Funding only becomes a priority when a specific need arises, whether that’s a major contract win, a large recruitment drive, expansion into a new market, or increased operational demands.

The challenge with this approach is that growth rarely waits for funding decisions to catch up.

Businesses can spend years building momentum only to find that access to funding becomes the bottleneck that slows progress.

For leadership teams managing growth, the question should not be:

“Do we need funding today?”

A more useful question is:

“What funding requirements will our growth create six, nine or twelve months from now?”

The difference between those two questions is often the difference between controlled growth and reactive growth.

Why growth creates funding requirements long before cash is needed

As businesses scale, funding requirements tend to appear well before cash shortages do.

New contracts often require upfront investment before revenue is recognised. Recruitment plans may need to be implemented months before projects begin generating returns. Expansion initiatives frequently require funding commitments long before they contribute to profitability.

This is particularly relevant in sectors where projects are larger, timelines are longer, and delivery obligations begin well before payment cycles catch up.

This challenge is often visible across renewable energy and infrastructure projects, where delivery commitments, equipment costs and operational expansion frequently need to happen long before project revenues are fully realised. Businesses may have secured the work, but the funding required to deliver it often arrives first.

Across Ireland, companies operating in infrastructure, engineering, energy, manufacturing and technical services increasingly face this challenge. Growth opportunities are expanding, but so are the funding requirements needed to execute them successfully.

The businesses that navigate this environment most effectively are rarely the ones with the largest cash reserves. More often, they are the ones that plan for future funding needs before those needs become urgent.

What Astatine understood early

Astatine is a strong example of this approach in practice.

Operating across power, heat and transport infrastructure, the company was founded in January 2020.

The timing was significant. Ireland’s energy transition continues to drive investment across power, heat and transport infrastructure, creating opportunities for businesses capable of delivering large-scale projects. For many companies operating in this environment, growth is rarely constrained by demand alone. More often, the challenge lies in having the operational capacity, working capital and funding structures required to deliver at the pace the market expects.

In its first year, the business generated €250,000 in revenue while navigating the uncertainty of the pandemic. Just a few years later, it had signed €96 million in orders and secured an €800 million platform agreement with Aviva.

Growth at that pace creates opportunities, but it also creates responsibility.

What stands out in Astatine’s story is not a dramatic funding crisis or a moment of financial pressure. In fact, CEO Tom Martin describes the opposite.

Rather than waiting for a funding challenge to emerge, the business consistently looked six to twelve months ahead, assessing future requirements and planning accordingly. Funding was considered part of the growth strategy, not an emergency measure.

That mindset is often what separates companies that sustain growth from those that struggle to keep pace with it.

Real Growth Stories: Astatine

Why Funding Should Never Be an Emergency Decision

One of the most revealing moments in Astatine’s story comes when discussing funding decisions.

Tom is clear that there was never an “oh no” moment that triggered a search for funding. Quite the opposite.

The business forecasts future requirements months in advance and plans funding facilities accordingly. As he explains, businesses should not be reaching the point where they suddenly realise they need significant funding immediately. If that happens, the underlying issue may not be access to funding, but a lack of forward planning.

This perspective is particularly relevant for founders and leadership teams navigating periods of rapid growth.

Funding decisions made under pressure are rarely optimal. They limit options, reduce negotiating power and often force businesses into solutions that prioritise speed over long-term suitability.

Strategic funding, on the other hand, provides flexibility before flexibility becomes essential.

The Scale Funding Gap Nobody Talks About

There is a stage of growth that many businesses encounter but few openly discuss.

It sits between early-stage funding and large-scale institutional finance.

A company may be too advanced for startup supports and too ambitious to rely solely on retained earnings. At the same time, traditional funding options may still view the business as too early-stage or too fast-growing for conventional facilities.

This creates what many founders describe as a scale funding gap.

Many businesses operating in renewable energy and infrastructure encounter this challenge as they scale. Projects often require specialist talent, delivery capability, equipment and supplier commitments to be put in place months before revenue is fully realised. The work may already be contracted, but the funding required to deliver it often arrives first.

Astatine refers to this directly. As growth accelerated, access to flexible funding became increasingly important in supporting continued expansion. Not because the business was struggling, but because growth itself was creating new requirements.

This challenge exists across many sectors in Ireland.

The businesses creating jobs, winning larger contracts and building future capacity are often the same businesses that require funding solutions designed specifically for growth.

Why Traditional Funding Doesn’t Always Fit Scaling Businesses

Traditional funding structures are not always designed around the realities of growth.

Traditional funding providers are often structured to assess historical performance rather than future opportunity. For businesses growing steadily, that approach can work well. For businesses scaling quickly, however, it can create a mismatch between the pace of growth and the pace at which funding decisions are made.

For younger or rapidly expanding businesses, this can mean waiting for funding approval long after the opportunity itself has arrived.

Equity funding presents a different option, but it introduces another set of considerations.

For founders, equity can provide access to funding, expertise and networks. However, it also involves ownership dilution and additional stakeholder involvement in future decision-making.

For some businesses, that is absolutely the right path.

For others, preserving ownership, maintaining agility and retaining strategic control remain priorities.

As Tom explains, Astatine deliberately avoided bringing in equity during its scaling phase, choosing instead to maintain flexibility while continuing to grow the business.

This is where alternative funding solutions can play an important role.

Where a Line of Credit Fits Into a Growth Strategy

For many scaling businesses, the objective is not simply access to funding.

It is access to funding that matches how the business operates.

A Line of Credit provides a pre-approved facility that can be drawn upon when required and repaid as needs change. Rather than taking a fixed amount of funding at a single point in time, businesses gain ongoing access to funding that can support changing operational demands.

For Astatine, this provided the flexibility to support continued growth while maintaining strategic control. As projects expanded and new opportunities emerged, the facility could be used as part of an ongoing growth strategy rather than a one-off funding event.

The value of this type of facility is not simply financial.

It creates optionality.

It allows leadership teams to make decisions based on opportunity rather than immediate cash constraints.

And it helps businesses maintain momentum without introducing unnecessary complexity or dilution.

Funding Should Support Growth, Not Dictate It

The strongest businesses do not build their growth plans around funding limitations.

They build funding strategies around growth plans.

That distinction matters.

When funding becomes a constraint, businesses delay hiring, postpone expansion, reduce investment and become more cautious than the market demands.

When funding is planned strategically, leadership teams have the confidence to act when opportunities arise.

As Astatine’s journey demonstrates, access to flexible funding was not about solving a crisis. It was about supporting ambition, maintaining momentum and ensuring growth could continue on the company’s terms.

Real Growth Starts Before the Opportunity Arrives

One of the most valuable lessons from high-growth businesses is that preparation happens long before opportunity appears.

Contracts are won because teams are ready.

Expansion succeeds because resources are already in place.

Growth becomes sustainable because funding has been considered well in advance.

The businesses that scale successfully are not always the ones with the most funding.

They are often the ones that understand when funding will be needed and put the right structures in place before that moment arrives.

Astatine’s story is a reminder that funding should never be viewed as a last resort.

When approached strategically, it becomes part of the infrastructure that allows businesses to grow with confidence, maintain control and move when the opportunity is right.

Discover More Real Growth Stories

Explore how ambitious Irish businesses are scaling on their own terms and learn how different funding solutions support growth at every stage.

→ Explore the Real Growth Stories series
→ Learn more about Financefair’s Line of Credit solution

 

 

Insights from Kappture on scaling a high-performance SaaS business, accelerating ARR growth, and why funding needs to move as fast as opportunity.

 

Scaling a SaaS business is often perceived as a structured and predictable process. Recurring revenue creates visibility, metrics guide decision-making, and growth appears to follow a logical progression.

In reality, however, the moment a SaaS company begins to scale, that structure starts to break down.

Growth does not happen neatly, one step at a time. Opportunities emerge faster than revenue compounds. Product development requires investment before ARR fully reflects its impact. Market timing rarely aligns with internal cash flow cycles.

This creates a fundamental tension for high-growth SaaS businesses. The challenge is no longer whether the business can grow, but whether it can grow at the pace required to capture the opportunity in front of it.

The Funding Gap Most SaaS Founders Don’t Model

Most SaaS founders reach a point where the business is working. ARR is growing, contracts are in place, product-market fit is clear. But the next move requires capital they don’t have yet.

The default options feel familiar. Go to a bank. Raise equity. Or wait and fund growth from retained earnings.

The problem is that none of these are built for the moment most SaaS companies actually face: strong recurring revenue, heavy reinvestment, and an opportunity that won’t wait 18 months.

This is where Revenue-Based Finance enters. And Kappture, a B2B SaaS business serving live events and stadium venues across Ireland and the UK, is a direct example of what it looks like in practice.

Why the Standard Options Don’t Fit

When founders hit this point, they typically look at three paths:

 

Traditional bank debt

Banks lend against cash flow. A high-growth SaaS business reinvesting heavily is often operating close to break-even from a cash perspective. Not because the business is weak, but because that’s what responsible growth looks like. Banks see break-even and move on. They’re not equipped to value contracted ARR or understand the unit economics of a scaling SaaS model.

 

Equity funding

Equity is available, but it comes with dilution, which changes the ownership structure permanently. It also brings new shareholders around the board table, which adds complexity that may not suit a bridge moment. For companies where the business is a year or two away from generating the capital itself, equity can be a permanent solution to a temporary problem.

 

Waiting and self-funding

The third option, generating cash and then investing, is the most common default. It’s also the one most likely to cost the company its timing advantage. In fast-moving markets, sequential execution is often just slow execution.

 

None of these are wrong in every context. But none of them were built for the specific moment a growing SaaS business faces when it has recurring revenue, real opportunity, and a funding gap between the two.

 

What Revenue-Based Finance Actually Is

Revenue-Based Finance (RBF) is a funding structure where capital is provided against a company’s recurring revenue, not against short-term cash generation or equity.

The core logic is straightforward: if a business has contracted, predictable ARR, that recurring revenue is a real asset. RBF uses it as the basis for a facility.

In practical terms, this means:

• The facility is sized relative to ARR, not to immediate cash flow
• As ARR grows, the available facility can grow alongside it
• There is no equity dilution and ownership structure is preserved
• No new shareholders or board-level complexity is introduced
• Repayment is structured to align with how the business generates revenue

 

The result is funding that moves in the same direction as the business. Growth unlocks more capacity. The structure is built to support expansion, not to constrain it.

For SaaS businesses specifically, where ARR is a more meaningful indicator of health than short-term cash, RBF can be a significantly better fit than traditional debt instruments.

How Kappture Used It

Kappture provides point-of-sale and frictionless payment technology built for live events and large-scale venues. The platform is designed for environments where demand spikes are intense and failure is not an option. Ten minutes before kick-off,, half-time intervals, 80,000 people in a stadium.

By the time the company needed funding, the core SaaS business was established. Kappture had contracts across major venues in Ireland and the UK, including Croke Park and Etihad Stadium. ARR was growing. The business had real commercial traction.

Then came a first-to-market opportunity: a frictionless payment technology called Brisk, designed to transform how stadium food and beverage operations work. Customers tap, collect their purchase, and leave. No traditional checkout. No queues. The kind of product that could double a venue’s transaction throughput.

Bringing it to market at speed required meaningful upfront investment. The core business was generating cash, but not at the scale or pace required to fund a full commercial rollout without delaying the opportunity significantly.

 

“We were at a crossroads — and there were many options available to us. One option was to take no new equity, take no new debt, and let the business finance whatever growth was there. We wouldn’t have made Oasis at Croke Park.”

— Mark Flood, Executive Chairman, Kappture

 

Financefair structured a Revenue-Based Finance facility aligned to Kappture’s ARR. Rather than raising equity or waiting for cash generation to catch up, Kappture accessed upfront funding against its contracted recurring revenue: up to €3M to support product development and go-to-market execution.

As ARR grew through new venue contracts and expanded deployments, the available facility increased in parallel. This gave Kappture the flexibility to execute multiple growth initiatives concurrently rather than sequentially. That distinction mattered significantly given the timing of the market opportunity.

 

What Happened Next

The frictionless Brisk solution was deployed across major stadium venues. Croke Park became one of the first full-capacity tests, supporting events including the Oasis concert and the first NFL game held in Ireland.

On the night of the Oasis concert, the system processed nearly 3,000 pints at the bar. As Mark Flood put it: the tech was flawless.

 

The broader results included:

• Accelerated deployment of the frictionless solution across tier-one stadium venues
• Expanded contracted ARR through new venue adoption
• Preserved shareholder ownership, with no dilution at any point
• Doubled transaction throughput during peak demand windows
• A stronger and faster path to profitability than sequential self-funding would have allowed

 

“Financefair allowed us to stop thinking sequentially. Rather than waiting to grow cash and then invest, we could run growth plans in parallel.”

— Mark Flood, Executive Chairman, Kappture

 

When Does Revenue-Based Finance Make Sense?

Revenue-based finance (RBF) is not the right instrument for every situation. But there are clear signals that it’s worth modelling seriously:

• Your business has contracted, predictable ARR, not just pipeline or projected revenue
• You’re reinvesting heavily into growth and operating close to break-even from a cash perspective
• There’s a specific opportunity in front of you that requires capital now, not in 12 to 18 months
• Equity dilution would be a permanent solution to what is essentially a temporary capital need
• Traditional bank debt isn’t available because the business doesn’t meet conventional cash flow criteria

 

Mark Flood’s advice to any SaaS founder considering external funding is worth sitting with: before you choose the instrument, model what the business looks like without any capital injection. Then model what’s possible if capital isn’t a constraint. Only then do you work backwards to the amount you actually need, and ask which structure fits that specific moment.

For Kappture, that process led clearly to Revenue-Based Finance. The facility fit the business model. It grew with performance. And it gave the company room to move at the pace the opportunity demanded.

What this means for scaling SaaS companies

For SaaS founders and leadership teams, the key takeaway is not just about funding options, but about how growth is structured.

A funding model that forces sequential decision-making will naturally limit the pace of growth. A model that scales with revenue, on the other hand, enables businesses to align execution with opportunity.

This is particularly relevant for companies operating in competitive or fast-evolving markets, where timing plays a critical role in long-term success.

Real growth is not linear

Scaling a SaaS business is rarely a linear process.

It involves making decisions ahead of validation, investing before outcomes are guaranteed, and navigating uncertainty with limited visibility.

The companies that succeed are not necessarily those with the most resources, but those that can act at the right moment.

In this context, funding is not simply a financial tool. It is an enabler of timing, execution, and strategic flexibility.

Scaling a SaaS business and exploring your funding options?

If your business has recurring revenue and a growth opportunity that’s ahead of your current cash position, Revenue-Based Finance may be worth considering as part of your capital structure.

Financefair works with B2B SaaS and technology businesses across Ireland and the UK, structuring growth funding aligned to ARR, without dilution, without equity, and without slowing down.

 

Talk to Financefair about Revenue-Based Finance

Click here and discover more Real Growth Stories from businesses scaling on their own terms. 

Learn more about funding solutions designed for scale  or get in touch with one of our growth experts today.

Insights from Otonomee on what it really takes to scale fast, make decisions ahead of revenue, and keep momentum without losing control. 

 

Growing a business is supposed to feel exciting.
New clients. New opportunities. Momentum building. 

But at a certain point, that excitement starts coming with a different feeling. One that founders rarely talk about openly. 

Because when growth accelerates, risk does too. 

Suddenly, decisions need to be made before revenue lands. Teams need to be hired before contracts are fully paid. Expansion has to happen before everything feels “safe”. 

This is the moment where growth stops being theoretical and becomes very real. 

And for many fast-growing companies, it is also the moment where cash flow becomes the biggest constraint. 

 

When growth starts moving faster than cash flow 

For businesses built to scale, growth rarely waits for perfect timing. 

New clients come in. Demand increases. Expectations rise.
But cash does not always move at the same speed. 

Payroll, operational costs and expansion decisions often happen weeks or months before customer payments arrive. That gap creates pressure. Not because the business is failing, but because it is growing. 

This is one of the most common challenges faced by fast-growing companies, yet one of the least discussed. Especially publicly. 

And it is exactly where many strong businesses either slow down unnecessarily or make decisions that limit future growth. 

 

Otonomee and the reality of scaling before revenue 

Otonomee was built with scale in mind from the very beginning. 

A remote-first global BPO provider, operating across multiple countries and time zones, their model depends heavily on people. Hiring ahead of demand is not optional. It is essential. 

As the business grew, so did the pressure to move faster. New contracts required teams to be in place immediately. Operations had to launch before revenue caught up. Growth was exciting, but it was also capital-intensive. 

Like many founders in this stage, the leadership team faced a familiar question
How do you keep growing without losing control? 

Not by slowing down. And not by choosing funding that does not understand the pace of scale. 

 

This moment of growth and risk comes to life in our first Real Growth Stories video with Otonomee 

 

The decisions founders have to make before they feel ready 

 

Growth forces decisions before comfort. 

Hiring when you would prefer to wait.
Expanding into new markets without full certainty.
Committing to clients while managing long payment cycles. 

Behind every scaling business is a leadership team balancing optimism with responsibility. The responsibility to their team. To their clients. And to the future of the business. 

This is where the right kind of support matters most. Not just access to capital, but confidence in timing and flexibility. 

Because growth does not pause while funding decisions are being made. 

 

Why flexible funding matters at this stage 

At this point in the journey, funding is not about taking on more debt or maximising leverage. 

It is about alignment. 

Funding that moves at the same pace as the business.
Funding that grows alongside revenue.
Funding that does not slow down decision-making or limit future options. 

For businesses like Otonomee, Financefair Selective Invoice Finance solution provided access to working capital exactly when it was needed. Not months later. Not after lengthy processes. But in line with operational reality. 

The result is not just liquidity. It is freedom to act. 

 

What real growth actually requires 

Real growth is not linear.
And it is rarely comfortable. 

It requires founders to make decisions before everything feels ready. It requires structures that support momentum rather than restrict it. And it requires partners who understand that growth is not just about numbers, but about timing, pressure and ambition. 

Stories like Otonomee’s remind us that scaling successfully is not about avoiding risk. It is about managing it intelligently. 

With the right support, growth does not have to come at the cost of control. 

 

Real growth isn’t just exciting 

Real growth is exciting.
But it also comes with pressure, responsibility, and decisions that cannot wait. 

It requires structure, clarity, and the right kind of support behind the scenes. Stories like Otonomee’s show that growth is not about moving fast at any cost, but about having the confidence to keep moving when it matters most. 

 

Click here and discover more Real Growth Stories from businesses scaling on their own terms. 

Learn more about funding solutions designed for scale  or get in touch with one of our growth experts today.

The incoming peak season, with its Black Friday, Cyber Monday, and Christmas shopping frenzy, is a golden opportunity for eCommerce businesses.

It’s a chance to capitalise on surging customer demand and boost sales to new heights. But, as every online retailer knows, success hinges on being prepared.

The Urgency of Early Preparation 

Savvy shoppers are starting their holiday purchases earlier each year. If you’re not ready, you’ll miss out on valuable sales and potentially damage your brand.

This is especially true for eCommerce businesses with a retail presence. When retailers want to restock, they need inventory now—on demand. Failing to deliver could have knock on effects with future customers sales and brand reputation. Having the capability and flexibility to meet these demands builds customer loyalty and strong long term partnerships.

Supply Chain Challenges and Inventory Risks 

Global supply chain disruptions, shipping delays, and rising costs have made inventory planning more complex than ever. The risk of your shipments getting delayed or not arriving in time for Black Friday is higher than ever.

Not having enough inventory during this crucial period can lead to lost sales, impacting revenue growth and progress through the scaling stages.

The Cash Flow Conundrum 

Stocking up on inventory ahead of Black Friday, launching large scale marketing campaigns, and optimising operations for peak season all require significant working capital.

Traditional funding options and business loans, with their slow approvals, rigid repayments, and personal guarantees, simply aren’t agile enough to meet the demands of the modern eCommerce landscape, especially in the run up to peak season.

Financefair: Empowering Your Peak Season Success

Financefair understands the unique pressures eCommerce businesses face. We offer a smarter way to scale, providing fast, frictionless funding solutions that empower you to navigate peak seasons with confidence and access the working capital you need to drive sustainable growth.

Seize the Opportunity, Accelerate Growth
The upcoming peak season isn’t just about survival; it’s about thriving and driving your growth. To take full advantage of all the opportunities presented by increased consumer demand, you need to be proactive and strategic.

Financefair’s flexible funding options allow online businesses to:

• Get Ahead on Inventory: Secure the stock you need now to avoid missing out on online sales later.
• Boost Your Marketing Reach: Invest in targeted campaigns to attract and convert more customers during the peak season.
• Optimise Your Operations: Ensure your business can handle the increased order volume and provide exceptional customer service throughout peak season.

Leverage Future Revenue to Fund Your Business Now 

The time constraints associated with traditional bank loans will hinder your ability to secure the working capital you need to capitalise on the upcoming shopping season, and many eCommerce funding companies charge a premium for one-size-fits all short term financing options. Financefair offers a compelling alternative.

Working with Financefair for Black Friday, Cyber Monday and the Christmas period, you can:

• Invest in your growth now, using the funds for a combination of marketing initiative investment, inventory expansion and operational contingencies.
• Quickly access the type of funding you need to prepare thoroughly for peak season. Apply online in minutes and get funded in as little as 24 hours.
• Enjoy flexible repayments that align with your actual sales, easing cash flow concerns during slower periods. We give you the control to structure a repayment plan that fully suits your needs.

Why Choose Financefair for eCommerce Financing?

• More Cost Effective than Competitors: Our unique pricing structure ensures you keep more of your hard-earned revenue.
• Control Your Cash Flow: Unlike competitors who take a daily percentage of sales, our solutions keep your cash flow moving and strong.
• Truly Alternative Funding Option: We offer a range of business funding options to fit your specific requirements, providing a truly alternative solution to traditional loans and short-term funding providers.
• Supporting D2C and Wholesale Business Models: We understand eCommerce businesses cross this divide and we have financing solutions to support both models or a combination of both.
• Beyond the Rush: We’re committed to building a long-term partnership with your business, providing access to further funding and strategic guidance as you continue to scale.

 

Don’t Just Survive the Black Friday Rush, Seize the Opportunity to Scale Smarter
This peak season, equip your eCommerce business for success and scaling.
Partner with Financefair, access funding, secure your inventory, boost your marketing efforts, and unlock your full eCommerce growth potential heading into 2025.

Find out more or get in touch with one of our growth experts today.

As an ambitious Irish SME, you’re probably trying to figure out how to make the most of working capital. Should you opt for a conservative growth approach or a more aggressive strategy to scale your business? And once you’ve decided on your approach, how will you finance additional working capital?

This article will run you through your options for working capital financing strategies as an Irish SME. We’ll also discuss in detail the different kinds of funding available to Irish SMEs, how Financefair can help, and some examples of working capital financing strategies for SaaS, ecommerce, and recruitment businesses. 

In this article:

What should my working capital financing strategy be?
What are your options for working capital financing?
Revenue based finance: capital that grows with you
Online business line of credit: only pay for the funding you use
Selective invoice financing: get an advance on your invoices, to alleviate a cash flow pinch
How to choose the best working capital financing facility for your company
Working capital financing strategy for a SAAS business
Working capital financing strategy for an ecommerce business
Working capital financing strategy for a recruitment business
Why choose Financefair for your working capital needs? 

Are you an Irish SME looking for working capital to grow your business or alleviate a cash flow pinch? Apply today 

What should my working capital financing strategy be? 

Before picking a financing strategy, it’s worth thinking about how conservative or aggressive you want to be.

Here are the three most common working capital financing strategies: 

Conservative approach: if you’re debt-averse

A conservative approach prioritises safety and liquidity. SMEs who opt for this approach tend to minimise risk by maintaining high levels of cash reserves and relying less on external funding. 

This approach is often useful for debt-averse businesses in industries with volatile cash flows.

While a conservative approach offers stability, it can result in missed opportunities. For example, a business might miss out on a bulk-buy discount because it’s reluctant to rely too much on external finance to buy extra stock. 

If this is the approach you’d want to take, then an online business line of credit might be a good source of working capital for you.

This offers you a pre-approved revolving line that you can tap into when you need to. You’ll only pay for what you use, and you’re not locked into a long-term financial commitment. 

Alternatively, if you find yourself regularly waiting 30-60 days (or more) for your invoices to get paid, invoice financing might be a good source of working capital. This allows you to get an advance on your invoice and get paid within 24 hours. 

Matching approach(also known as hedging): if you’d prefer short-term borrowing

The matching approach aims to balance risk and return by aligning the duration of external working capital financing closely with the lifecycle of financed assets. For instance, if a business wants to take advantage of a bulk-buy discount, it might take out short-term debt that will be paid off quickly. Alternatively, it may decide to take out a term loan for a longer-term investment: such as for strategic projects such as product development, investment in marketing, hiring, and internal digital transformation.

This approach helps businesses manage liquidity risk and financing costs. However, it can be difficult to execute. Obtaining financing with terms that perfectly match a strategic product’s lifecycle can be challenging and can result in a resource drain in managing the administration of constantly setting up new, short-term finance deals. 

Likewise, a company relying on a matching approach may be surprised by sudden changes in the market and be slow to access funding: as setting up separate financing agreements for each asset requirement takes time. 

A business using the matching approach might find revenue-based finance useful. This funding is based on a percentage of your projected revenue. As this is tied to your business performance, there’s little chance of overborrowing. When you use Financefair, we can set up a revenue based finance facility that gives you an injection of capital when you need it most. 

Aggressive approach: if you’re comfortable with risk

An aggressive working capital financing strategy involves taking on high risk for (potentially) high returns. SMEs taking this approach use more short-term financing to fund current assets as well as a portion of long-term assets.

For instance, ​​a retail company might rely heavily on short-term loans to quickly increase its inventory before a major holiday season, betting on high sales to pay off the loans swiftly. This strategy amplifies potential profits but also increases the risk of financial strain (and overstocking) if the expected sales surge doesn’t actually materialise.

The choice between these strategies depends on various factors, including your risk tolerance, growth objectives, individual characteristics, and current market conditions. 

Selective invoice financing can be useful for a business taking a more aggressive approach. You can advance your customer invoices and get paid in 24 hours – meaning you don’t miss out on any growth opportunities while waiting for your customers to pay you. 

What are your options for working capital financing? 

Whether you choose a conservative, hedging, or aggressive approach, you’ll need a flexible source of working capital to manage cash flow gaps and capitalise on growth opportunities.

Here are some of the most popular working capital financing options for an Irish SME: 

Working capital financing	Pros	Cons
Bank loans	• Access to a large amount of funds • Fixed interest rates and terms for predictable repayments	• Often have eligibility and credit requirements • Collateral often required • Can take a long time to apply and receive funds
Business Overdraft	• Allows account balance to fall below zero up to a set limit • Pay interest only on the overdrawn amount	• Higher interest rates than traditional loans • Fees for exceeding the overdraft limit • Can quickly become overwhelming
Business line of credit	• Pre-approved revolving credit line • Only pay for what you use • Fast access to capital	• Limited levels of funding • Interest cost can be high if poorly managed
Selective invoice financing	• Fills a cash flow gap and advances outstanding invoices • Doesn’t require traditional collateral or personal guarantee • Fast access to capital	• Limited to 90% of invoice value
Revenue based finance	• Based on projected revenue, no overborrowing risk • No need for collateral • Funding line grows with revenue	• More expensive than traditional loans • Suitable for companies with predictable revenues
Crowdfunding	• Raise funds from many investors without equity loss • Engages customers, aids in brand building	• Requires significant marketing effort • Funding target may not be met • Platform fees reduce available capital
Venture Capital	• Access to significant funds and resources • Valuable for network connections and business advice	• Highly competitive, lengthy process • Usually requires equity and control concessions • Comes with high growth and ROI expectations

At Financefair, we offer revenue based finance, selective invoice financing, and business line of credit.

These options can help you make the most of your working capital financing strategy: without getting into long-term debt or diluting the equity in your business. 

Read on to learn how each option works and which is best for your working capital financing strategy. 

Prefer to talk to an expert to find out the best working capital strategy for your business? Talk to one of our experts

Revenue based financing: capital that grows with you

Revenue-based finance offers your business an infusion of capital by strategically using the projected revenue from your existing contracts. By aligning the financing directly with your projected revenue streams, you can ensure that the capital boost you receive is sustainable and tailored to your business’s growth trajectory. 

This makes revenue-based finance an ideal choice for companies looking for access to working capital without compromising their equity or taking on burdensome debt.

The facility’s operation will differ depending on your financing provider. At Financefair, we’ll examine your forecasted revenue over the next 12 months and your predicted growth rate. This information allows us to determine how much funding we can offer you. We’ll also discuss your business needs with you in detail to ensure you have the right amount of working capital at the right time. 

At Financefair, your facility will be based on:

• 20% of your annual recurring revenue (ARR)
  or
• 70% of your quarterly revenue

Once we have all the necessary information, we’ll calculate and confirm the total approved amount we can offer you.

You’re eligible for a revenue based finance facility with Financefair if you meet the following requirements: 

• Limited company in Ireland with at least 2 directors
• Trading for at least 2 years
• Minimum turnover of €1M+

Revenue based finance is an excellent source of working capital because we base the size of your facility on your company’s revenue. This means you can get more funding as your revenue grows. And if your projected revenue decreases, you will still be able to access funding relative to the revenue you are generating.

You’ll pay three fees: a platform fee, a monthly facility fee, and a discount charge. Here’s an example of cost:

Annual recurring revenue, including VAT	Estimated amount of funding we can advance	Estimated cost per 30 days
€500,000	€100,000	€1,500
€750,000	€150,000	€2,250
€1,000,000	€200,000	€3,000

Try the calculator for yourself on our revenue based financing page

For an in-depth working example and more information, check out our revenue based financing guide. 

Invoice financing: plug cash flow gaps by getting an advance on your invoices

Invoice financing (sometimes called invoice discounting) is an innovative working capital facility that allows you to leverage your existing customer book to draw capital into your business. This eliminates the cash flow gap when waiting for your customers to pay your invoice for work completed (which can take 30-60 days, or even longer). 

With an invoice financing facility from Financefair, you can get an advance of up to 90% of that invoice within 24 hours of raising it. 

There are three types of invoice financing: 

1. Full book invoice financing: You get an advance on all your invoices.
2. Selective invoice financing: You only get an advance on the invoices you choose to raise. 
3. Invoice factoring: Your funding provider takes an operational role in your business and takes over credit control. 

Financefair is the only provider of selective invoice financing in Ireland. 

Invoice financing facilities are also either disclosed (non-confidential) or undisclosed (confidential). 

• Disclosed invoice financing: Your customers will know you’re using an invoice financing facility. 
• Undisclosed invoice financing: Your customers will assume they’re paying you directly. At Financefair, our invoice financing facilities are always undisclosed and completely confidential. 

Here’s the eligibility for invoice financing with Financefair:

• Limited company with at least two directors
• Trading for at least 2 years
• Minimum annual turnover of €1M+
• Average debtor book of €500,000

How does invoice financing work?

Invoice financing will work slightly differently depending on your finance provider, but here’s how it works at Financefair: 

1. You issue an invoice and raise it on our online platform. Unlike other invoice financing platforms, you only need to raise the invoices you choose at Financefair. 
2. We’ll give you an already agreed-upon portion of the invoice’s value (up to 90%) as an advance. We’ll pay this into your account within 24 hours. 
3. After the payment terms are up, your customer pays the invoice amount into an account with your company name, but controlled by Financefair – for 100% discretion. 
4. As we offer an undisclosed facility, your customers won’t know they’re paying us. 
   1. If you opt for a disclosed facility with a different provider, your customer will know you’re using invoice financing.
5. We’ll transfer you the remainder of the invoice value minus fees. 
   1. Our pricing structure at Financefair is simple and transparent. You’ll pay an annual platform fee minus any discounts for a strong credit rating. 

Here’s an example of what you might pay: 

Size of facility	Cost per 30 days
€150,000	€1,500
€500,000	€5,000
€1,000,000	€10,000

To get an exact figure for your business, try our invoice financing calculator.

For more information on invoice financing, read our guide.

Line of credit: only pay for what you borrow 

An online business line of credit gives your business access to a pre-approved line of funding when you need a boost of working capital. It functions similarly to a digital overdraft, and you only pay for what you use.  

A line of credit facility can be a good option for SMEs who need working capital of €50,000 to €250,000 annually. 

Here’s the eligibility for a line of credit facility with Financefair: 

• Incorporated limited company in Ireland
• Trading for at least 2 years
• Minimum annual turnover of €1M+

Many banks can offer you a line of credit, but you usually have to have been banking with them for a certain amount of time. 

The main benefit of a line of credit is quick access to working capital. Once we’ve set you up on our platform, you can initiate a transfer when you need an injection of capital and receive funds in your bank account in 24 hours. 

This is a more flexible funding option than more traditional funding, like a bank loan. A line of credit is a revolving source of working capital. Once you’ve paid what you owe, you have access to that funding again without having to reapply. 

Financefair is the only provider of a standalone line of credit in Ireland.

With a business line of credit, you’ll pay a platform fee and a monthly fee of 0.6-0.75%, minus any discounts for a strong credit score.  

For more information, read our online business line of credit guide. 

Three questions to ask yourself when deciding on a working capital financing solution 

When deciding on a facility, use these three questions to help you decide which type of working capital financing solution would work best for your company:

1. What are my cash flow requirements? 

Consider your cash flow requirements: 

• If your revenue fluctuates with the seasons, revenue based finance might be a great solution for your business. This option ties repayments to your revenue, reducing the risk of overborrowing during slower periods.
• If you’re experiencing a cash flow squeeze each month while waiting on invoice payments, selective invoice finance can provide up to 90% of an invoice’s value upfront, offering a quick capital boost.

2. How often do I need access to working capital? 

Consider how often you’ll need funding. Bank loans provide a predictable monthly expense and low-interest rates but lack flexibility if you need additional funds. On the other hand, solutions like revenue-based finance and line of credit offer a revolving line of funding, so you’ll always have access to working capital without having to reapply. 

3. Do I have any tangible assets or collateral? 

Traditional bank loans are based on businesses with tangible assets and collateral. If you’re a SaaS business that raises revenue from subscriptions, for example, you’ll find it difficult to get funding from a bank.

Thankfully, many innovative solutions are available that don’t require collateral or tangible assets, such as revenue-based finance, invoice finance, and a line of credit. Moreover, most lenders require a personal guarantee, which puts your personal assets at risk if the business fails. At Financefair, we don’t require personal guarantees on any of our facilities.
 
Read on for three examples of working capital financing strategies for SaaS, e-commerce, and recruitment businesses. 

How a SaaS company used revenue based finance to support their working capital financing strategy 

It’s rare for banks to lend to SaaS businesses, as they lack tangible assets and collateral. Thankfully, there are better options for accessing flexible working capital that work well with a SaaS model.  

At Financefair, we work with a lot of growing SaaS companies. We often recommend revenue based financing.

Revenue based financing is ideal for SaaS businesses with strong revenue streams but few tangible assets. Because payments align with your business revenue, there is no risk of overborrowing. Likewise, there’s no equity dilution, so you can maintain control of your business. 

We recently worked with a business that retrofits commercial vehicles with dashcams and offers comprehensive software for data analysis, working through a SaaS model.

The business approached Financefair, as they needed to secure working capital. They wanted to secure €4 million from investors to venture into new markets. However, they wanted to avoid diluting their ownership too much.

After discussing their situation and ambitions with our experts, the business decided on a revenue-based finance facility, which offers fast access to working capital without giving up equity. 

We could extend them a revolving funding line of €1.5 million. Based on their business forecasts and needs, we disbursed an initial capital injection and distributed the rest in stages. 

With a steady stream of working capital, the company was able to delay its search for investment by 12 months.

This allowed them the time to refine their funding strategy and reduce the size of the investment needed, thus keeping more of their business when they did find an investor. 

How a recruitment business could use invoice financing to alleviate a cash flow gap

Many recruitment businesses experience cash flow pinches. You pay your contractors, but you have to wait at least a month or two for the contract owner to pay you. 

Invoice financing works well for a recruitment business to alleviate that cash flow pinch and access working capital. At Financefair, we offer both selective and full-book invoice financing. These facilities are a great option for hybrid or temp recruitment businesses with a high volume of invoicing.

Invoice financing allows your business to get paid for your raised invoices in 24 hours rather than waiting 30, 60, or 90 days to receive funds. 

This gives you the peace of mind that you have the working capital you need to get through a cash flow pinch. 

Imagine a recruitment agency specialising in providing temporary staffing solutions. This agency faces a common challenge: they pay their contractors every week but must navigate a long waiting period before their clients settle invoices and the business gets paid. 

This leaves the recruitment company with a cash flow gap that can disrupt operations and cause financial stress.

To alleviate this cash flow pinch, the recruitment business could turn to selective invoice financing. This allows them to choose high-value invoices and get an advance of up to 90% on them. 

Here’s how it works:

• The recruitment business earmarks a high-value invoice, say for €60,000, with payment terms of 60 days.
• The business raises this invoice on the Financefair platform and receives 90% of the invoice’s value in their bank account (€54,000) in 24 hours. 
• This rapid injection of capital alleviates the cashflow bottleneck and also enables the business to take advantage of new opportunities and tender for new contracts. 

How an ecommerce business can use revenue based finance to grow their business

If you’re an ecommerce business, you’ve probably considered taking out a bank loan to use as working capital, perhaps to help with inventory management.

While you may have tangible assets to use as collateral for a loan, this type of financing lacks flexibility. Once the funds from the loan are gone, you’d have to re-apply to the bank to get another dose of working capital. Most banks are unlikely to offer you a second loan, and you can lack the working capital you need to manage and grow your business. 

At Financefair, we’ve helped many ecommerce businesses use revenue-based finance to access a revolving line of funds that act as fast injections of working capital. 

Consider an e-commerce business operating through Shopify, looking to scale operations and expand its market reach. This business, already showing promising growth with over €1m in annual turnover, is looking for a flexible financing solution to support its ambitions without diluting ownership or taking on restrictive debt.

Imagine that this company has applied to Financefair and passes on its sales data and growth projections. After getting back to the company (within 24 hours), we were able to set up a revenue-based financing facility within the week.

We could loan the company 20% of their future annual recurring revenue. There was an initial injection of capital, and then we strategically dispersed the rest of the funds throughout the year. After receiving funding (24 hours after setting up the facility), the company was able to put the capital to work by: 

• Making inventory levels and improving supply chain: Utilising discounts for bulk inventory purchases to improve margins and investing in a more cost-efficient supply chain. 
• Filling cash flow gaps: Smoothly managing operational expenses during periods of fluctuating sales.Ensuring timely payroll and contractor payments 
• Amplifying digital marketing efforts, including SEO, social media, and pay-per-click advertising, to drive sales and expand the customer base.

Revenue based finance could be an invaluable growth tool for this ecommerce business. It can provide the liquidity they need to scale, without having or taking on long-term debt or giving up equity. 

Are you an ecommerce business looking for working capital to improve your day-to-day operations and grow? Read more here: Ecommerce financing: What are your options? 

Why choose Financefair for your working capital needs? 

Financefair (formerly InvoiceFair) was founded in 2015 in Dublin. Our team of experienced industry experts offers tailored working capital solutions to grow your business. 

We’ve been helping Irish SMEs grow with invoice finance, revenue based financing and business line of credit facilities. 

Here’s what you get with Financefair:

We’ll give you an indicative offer within 24 hours of applying

Our streamlined processes and expert team allow us to give you an indicative offer in just 24 hours. 

And once your application is approved and you’re set up on our platform, we can release your funds within 24 hours. 

We use advanced data analytics to get read-only access to your most recent accounting and open banking information. This gives us an accurate and real-time view of your business finances so we can offer you the best facility for your current needs. 

Access more working capital, thanks to our unique funding model

The funding a traditional bank can offer comes directly from its balance sheet. We work differently. We partner with a number of investors who advance the funding. This allows you to get a larger overall working capital funding. 

Bank loans also come with strict concentration and risk rules. Many banks don’t want to provide additional financing to a business that already has a credit line with them, making it challenging to access more funding on top of your existing loan.

Because we offer flexible working capital financing solutions, we can tailor your facility as needed and offer you more funding as your company grows – without you having to re-apply.  

Apply digitally for a seamless end-to-end experience, or reach out to our team 

We understand the importance of making funding as accessible as possible. That’s why you can start your journey with Financefair in under 5 minutes by completing our application form. 

Of course, if you’d prefer to speak to our expert team, you can always contact us to discuss how we can grow your business. 

Financefair is the only provider of revenue based finance, selective invoice financing, and a standalone business line of credit facility in Ireland. 

Here are some other benefits of choosing Financefair: 

• You can easily swap facilities: You might start out with a business line of credit and want to switch to revenue-based finance as your revenue increases. This is a simple process at Financefair. 
• You don’t need blue-chip debtors or tangible assets: At Financefair, we look at the strength of your revenue: we don’t need you to have tangible assets or blue-chip debtors. 
• We don’t require a personal guarantee from the business owner, so your personal assets, like your home, are never at risk. 
• Our pricing is simple: there are no hidden fees or costs.

Choose Financefair to support your working capital financing strategies 

At Financefair, we pride ourselves on offering tailored working capital solutions to ambitious Irish SMEs. 

By using our innovative financing methods – like revenue based finance, line of credit, and invoice financing – you can access a source of working capital without burdening your business with debt, or diluting equity. 

To get started with Financefair, complete an application form. Alternatively, reach out to our team of experts to discuss your options. 

 

The business financing world is in a period of transformation, fuelled by the cost of supply chain, inflationary pressures, and technological advancements. 

These changes are reshaping how businesses, especially SMEs, approach growth funding. While traditional business loans remain popular, more businesses are leaning towards more innovative and flexible financing solutions, like revenue based finance and invoice financing.

To help you understand the current landscape of business financing, we’ve compiled over 40 business loan statistics. We’ll focus on Ireland where possible, but we’ll also include relevant UK and US trends, as these markets often set precedents and influence global standards and practices for SMEs.

Here are five key business loan statistics: 

1. The volume of gross new lending from banks to Irish SMEs during the fourth quarter of 2022 amounted to €952 million, a 13% decrease compared to the previous year, showcasing the lowest level of new lending since the third quarter of 2021.¹
2. Forecasts expect the alternative lending market in Ireland to grow by 17.3% annually to reach US$357.2 million in 2023, with a projected increase to US$528.3 million by 2027.²
3. In the UK, the share of businesses using external finance was 33% in Q3 2022. This was a significant drop from 44% in Q3 2021 and the lowest level since the start of the pandemic in the first half of 2020.³
4. In Ireland, the small business loan sector has experienced a decline in debt levels, with a significant reduction from €27.1 billion in 2010 to €12.8 billion in 2020.⁴
5. In the UK, in 2022, a fifth (20%) of SMEs who applied for business finance had their applications rejected despite having a ‘good or excellent’ business credit score.⁵

In this article:

Where are SMEs borrowing from?
How much are SMES borrowing?
How much are SMEs paying for their business loans?
Why are SMES looking for finance?
Are businesses getting accepted for business loans? 
Is alternative business financing becoming more popular?
FAQ

Are you an SME looking for business financing in Ireland? Reach out to find out if Financefair can grow your business. 

Where are SMEs borrowing from? 

It’s probably not surprising to learn that traditional banks are the most common funders of business loans. The most recent financial reports show that: 

In Ireland:

• During Q4 2022, the gross new lending from banks to SMEs was €952 million – a 13% decrease on Q4 2021. This marks the lowest level of new borrowing since the third quarter of 2021.¹
• In 2022, there was an increase in gross total lending (including new and existing financing) to SMEs – around €4.2 billion. This is a 4.3% rise on 2021.¹

In the UK:

• 7% of SMEs had sought a business bank loan between 2019 and 2022.³
• Government grants and business credit cards were the most popular forms of business finance in this period, with 12% of SMEs using at least one from 2019-2022. It’s important to note that government grants during COVID-19 have influenced these stats.³
• According to British Business Bank research, bank loans and private lending rose in demand from 3% to 10% between 2021 and 2022.³
• Most other finance options didn’t increase in demand during this period, except for ‘loans from a director, individual, or other organisation’, which increased from 10% to 11%.⁶
• According to Statista, business bank loans and bank overdraft facilities have remained the most popular forms of financing for SMEs from 2019 to 2022.⁷

Image source: Statista⁷

In the US:

The business finance environment in the states significantly differs from the UK and Ireland. Many businesses receive loans backed by the U.S. Small Business Administration (SBA). 

These typically have lower down payments and more flexible overheads than traditional bank loans. 

• According to the data from the federal reserve (and reported by Forbes), US businesses that did opt for a traditional bank loan, 43% turned to large banks, 36% to small banks, and 23% to online lenders.⁸Image source: Forbes⁸ 

Challenger banks and digital lenders are becoming increasingly popular

There aren’t any reliable statistics on the popularity of challenger banks with SMEs in Ireland. 

• However, Statista expects the Irish digital banking market to reach a value of US$16.2bn (€15 billion) in 2024, with an annual growth rate of 10.30%. As such, we might expect to see challenger banks become a common source of business financing for Irish SMEs.⁸

In the UK:

• In 2021, digital platforms in the UK experienced sustained and increased expansion, building on the momentum gained in 2020 due to the widespread adoption of online services amidst COVID-19.⁹
• In 2022, the growth of these digital platforms slowed, and investment decreased, shifting back towards pre-pandemic funding levels.⁹
• Still, in 2022, challenger and specialist banks accounted for 55% of SME gross lending, up from 51% in 2021 and overtaking the big five banks for the second year running.³
• (The “big five” banks in the UK refer to Barclays, HSBC, Lloyds Banking Group, NatWest Group, and Standard Chartered).

In the US:

• Forbes found that 23% of small business loan applicants opted for online lenders in 2021 – an increase from 20% in 2020.⁸

How much are SMEs borrowing?

In Ireland

• It’s hard to find exact statistics on how much Irish small businesses typically borrow. But we do know that the total money owed by small businesses decreased significantly: from €27.1 billion in 2010 to €12.8 billion in 2020.⁴

In the UK

• A study by the British Business Bank noted a rise in the average loan size for SMEs from 2021 to 2022. In 2022, the median loan amount reached £14,000, marking a 40% increase from the previous year’s median of £10,000.⁶

Image source: British Business Bank⁶

• According to SME Finance Monitor, 36% of SMEs used external financing in 2022, with one-third of these businesses taking out loans exceeding £25,000. This marks a 7% decrease from 2021.¹⁰
• Only 23% of sole proprietorships (businesses without any employees) secured loans above £25,000. In contrast, 84% of larger SMEs, those with 50 to 249 employees, borrowed more than £25,000.¹⁰
• Nearly half (48%) of SMEs in the UK were categorised as permanent non-borrowers, indicating they had yet to receive current loans, nor were they expected to seek borrowing in the future.¹⁰

In the US: 

• According to Nerd Wallet, the average short-term loan from a traditional bank (and not under the SBA scheme) was $20,000, and $110,000 for a medium-term loan.²⁷

Image source: Nerd Wallet²⁷

How much are SMEs paying for business loans? 

The last few years have seen inflation increase significantly in many parts of the world, meaning that the cost that SMEs are paying for their business finance is constantly changing. 

In Ireland:

• The average interest rate on new SME loans reached 5.23% at the end of 2022, and the average interest rate on outstanding SME loans also rose to 4.47%.¹
  Image source: Central Bank of Ireland¹
• Since then, interest rates have increased. In January 2024, AIB listed a variety of business lending interest rates, including an SME Variable Business Loan rate at 5.95% and an SME Fixed Rate Loan at 7.45%​​.¹¹
  
• Meanwhile, Bank of Ireland offers unsecured business loans with a variable rate of 7.05% and secured loan variable rates at 6.05%​​.¹²

In the UK:

In the UK, the Bank of England’s (BoE) base rate is the central reference for interest rates set by the country’s central bank. This rate has experienced significant fluctuations over the past few years.

On 3 August 2023, the BoE’s base rate was adjusted to 5.25%, marking its highest level since 2008. This sharp increase from the historic low of 0.1% in 2020, during the COVID-19 pandemic, was part of a broader strategy to curb inflation that began escalating in 2021.¹³

• In 2020, the environment of low base rates led to relatively low-interest rates for business loans. At this time, the average interest rate for new business loans was around 3.44%.¹⁴
• The increase in the BoE’s base rate in August 2023 led to a rise in the interest rates for business loans, at an average of 6.97% for new business loans.¹⁴
• As of January 2024, unsecured business loan interest rates range from 6% to 15%.¹⁶

Why are SMEs looking for financing? 

In the UK

• According to a NerdWallet study of 500 senior SME decision-makers, a third of SMEs need access to business finance to survive the next six months.¹⁷
• Statista reports that in 2022, the top reason 60% of small and medium businesses (SMEs) in the UK sought external funding was for working capital. Additionally, 42% of these UK SMEs sought funding to buy fixed assets.¹⁸

Image source: Statista¹⁸ 

In the US:

• According to a Forbes survey, most US business owners spent their loans on growing their business, with 42.4% naming it as one of their top three uses. Buying equipment was the second most popular choice, mentioned by 29.4% of those surveyed. 28.6% of those surveyed mentioned that they would use the loan for marketing and advertising expenses.⁸

Image source: Forbes⁸

Are businesses getting accepted for business loans? 

There’s limited information on loan approval rates in Ireland, and the US has a significantly different loan landscape (thanks to SBA loans). 

So to understand how many businesses are getting accepted for business loans that meet their financing needs, it’s helpful to look at UK statistics.

In the UK:

• In 2022, just 64% of SMEs received the complete sum of financing they sought from their preferred provider, while an additional 12% were only approved for amounts lower than their initial request.⁹
• This represents a notable decline from the previous four years, during which more than 80% of SMEs typically received the requested amount in full.
• Sole proprietorships (businesses without employees) experienced the lowest acceptance rates, with lenders approving only 57% of their finance applications. Conversely, businesses employing between 50 and 249 individuals saw their loan applications succeed at a high rate of 98%.⁹

Due to this, we’re seeing SMEs consider more than one lender. 

• In the UK, in 2022, nearly one-third (32%) of SMEs reported considering multiple finance providers, such as online lenders, up from one in five (20%) in 2021.¹⁹ 
• The overall count of SMEs contemplating external finance sources also rose in 2022, with 91% considering at least one finance provider, an increase from 85% in the previous year.¹⁹

Image source: Finder¹⁹

Is alternative business financing becoming more popular? 

We’ve seen that challenger banks and digital lenders are becoming increasingly popular with small business owners and entrepreneurs.

But recent statistics have also shown that alternative business financing is quickly becoming a popular option for SMEs. 

Alternative business financing is anything that isn’t a typical business loan: including revenue based financing, peer-to-peer lending, and invoice financing. 

Here are some statistics on alternative business financing: 

In Ireland:

• The alternative lending market in Ireland is on an upward trajectory, with projections indicating a yearly growth of 17.3%, targeting a valuation of US$528.3 million by 2027.²

In the USA:

• Forecasts expect the alternative lending market in the United States to reach approximately $8.68 billion in transactions in 2022. It’s predicted to expand at an annual growth rate of 2.4% from 2021 to 2025.²⁰
• Globally, the alternative lending market was valued at approximately $334.28 billion in 2021, and is expected to grow at a compound annual growth rate of 4.70% between 2021 and 2025.²¹

In the UK:

• In 2023, the alternative lending market was valued at US$ 48.06 billion.²²
• Forecasts expect this to expand at a growth rate of 10.8%– increasing from US$ 39.98 billion in 2022 to US$ 72.48 billion by the end of 2027.²²

Looking for alternative business financing in Ireland? Financefair offer revenue based financing, invoice finance, and online business line of credit. Reach out to find out more. 

Revenue based finance

A common form of alternative business lending is revenue based finance.

Unlike fixed-repayment traditional loans, revenue based finance offers dynamic, growth-aligned financing based on business projections. Essentially, an SME can use their future revenue as working capital. Financefair is the only provider of revenue based finance in Ireland.

This option is popular for asset-light but revenue-steady companies like SaaS firms, who often struggle to get funding from most traditional financial institutions.²³

Worldwide: 

• The market for revenue-based financing is on a sharp upward trajectory, and is set to expand from a valuation of $1.98 billion in 2022 to $3.38 billion in 2023, marking a growth rate of 71.2% year over year. Looking ahead to 2027, forecasts suggest the market will balloon to $25.94 billion, demonstrating a steady growth rate of 66.4%.²⁴

In Ireland: 

• Financefair is the only provider of revenue based finance in Ireland. 

Peer-to-peer business lending

Peer-to-peer (P2P) business lending functions like a business loan, but the business borrows from investors through a digital platform – rather than a traditional bank. They’re often faster and easier to get than traditional loans, but come with more risk.

In the UK:

• Since 2012, the peer-to-peer business lending market in the UK has seen consistent growth, reaching a total of 4.02 billion British pounds by the year 2020.²⁴

Image source: Statista²⁴

Invoice finance:

Invoice discounting allows businesses to receive an advance on the money owed in unpaid invoices, effectively using these invoices as collateral. This method provides quick access to funds without a traditional loan, helping fill cash flow gaps and provide working capital. While there is no statistics on invoice finance in Ireland specifically, it can be helpful to look at UK trends: 

In the UK: 

• A study by Time Finance UK revealed that invoice finance is emerging as a preferred alternative financing method for many businesss. They reported that 32% of financial intermediaries expect invoice finance to become the primary mechanism for supporting cash flow.²⁵
• According to a 2022 report by UK Finance, invoice finance funding reached an average quality advance of nearly £21 billion. This is a 32% increase on 2021, which was just below £16 billion.⁹

Image source: UK finance[9]

To learn more about how invoice financing works, check out our guide. 

FAQ

How much does the average SME borrow on a business loan?

In Ireland: Specific figures on average loans for Irish SMEs aren’t readily available, but businesses are borrowing less overall. Total debt has decreased from €27.1 billion in 2010 to €12.8 billion in 2020.

In the UK: The median business loan amount for SMEs was £14,000 in 2022, up from £10,000 in 2021.

In the US: The average short-term loan from a traditional bank was $20,000, and $110,000 for a medium-term loan.²⁷ 

How much does a business loan cost an Irish SME in interest?

In Ireland, the average interest rate on new SME loans was 5.23% at the end of 2022, and the average interest rate on outstanding SME loans rose to 4.47%.[1] Interest rates have increased since then, with AIB listing various business lending interest rates, including an SME Variable Business Loan rate at 5.95% and an SME Fixed Rate Loan at 7.45% in January 2024.¹¹

What are the alternatives to business loans?

Alternatives to business loans include revenue based finance, invoice financing, and online business line of credit. The alternative lending market in Ireland is predicted to reach a value of US$357.2 million in 2023.²

What is revenue based finance?

Revenue-based finance provides funding for businesses with consistent revenue streams by aligning capital amounts with projected income. This option doesn’t require a business to have blue-chip debtors and is popular with SAAS businesses, which often receive revenue through subscriptions. 

What is invoice financing?

Invoice financing (also known as invoice discounting) allows businesses to receive an advance on the money owed to them in unpaid invoices, using these invoices as collateral. This method provides quick access to funds without needing a traditional loan, helping to provide cash flow for working capital. 

The future of business financing

While business loans will always be an important tool for growing businesses, we’re seeing a significant increase in alternative financing options, like revenue based finance and invoice financing. 

Financefair is at the forefront of this transformation in Ireland, offering innovative financing solutions tailored to the unique business needs of SMEs. We offer revenue-based finance, invoice financing, and business line of credit to Irish businesses looking to grow. 

To find out how we can support your business, fill out an application form. 

Sources

¹ https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/business-credit-and-deposits/2022q4_trends_in_sme_and_large_enterprise_credit_and_deposits.pdf?sfvrsn=8acb991d_4
² https://www.globenewswire.com/news-release/2024/01/30/2819745/0/en/Ireland-Alternative-Lending-Business-and-Investment-Opportunity-Report-2023-Market-will-Increase-from-304-6-Million-in-2022-to-Reach-528-3-Million-by-2027.html
³ https://www.british-business-bank.co.uk/wp-content/uploads/2023/02/J0189_BBB_SBFM_Report_2023_AW.pdf
⁴ https://www.oecd-ilibrary.org/sites/92f28ade-en/index.html?itemId=/content/component/92f28ade-en
⁵ https://www.nerdwallet.com/uk/business-loans/access-business-finance/
⁶ https://www.british-business-bank.co.uk/wp-content/uploads/2023/04/BBB_SMEFinanceSurveyReport_2022.pdf
⁷ https://www.statista.com/statistics/460373/sme-methods-of-finance-united-kindom/
⁸ https://www.forbes.com/advisor/business-loans/small-business-loan-statistic
⁹ https://www.ukfinance.org.uk/system/files/2023-06/Business%20Finance%20Review%202023%20Q1%20-%20FINAL.pdf
¹⁰ https://www.bva-bdrc.com/sme-finance-monitor/
¹¹ https://aib.ie/business/interest-rates/business-lending-rates
¹² https://businessbanking.bankofireland.com/credit/business-loans/business-loan/
¹³ https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2023/august-2023
¹⁴ https://www.bankofengland.co.uk/statistics/money-and-credit/2022/may-2022
¹⁵ https://www.bankofengland.co.uk/statistics/effective-interest-rates/2023/august-2023
¹⁶ https://www.money.co.uk/business/business-loans/average-business-loan-interest-rate
¹⁷ https://www.nerdwallet.com/uk/business-loans/access-business-finance/
¹⁸ https://www.statista.com/statistics/460353/sme-reasons-to-seek-external-financing-united-kindom
¹⁹ https://www.finder.com/uk/business-loan-statistics#
²⁰ https://www.leadsquared.com/industries/lending/alternative-lending/
²¹ https://www.creditsuite.com/blog/small-business-lending-statistics-and-trends/
²² https://www.fintechfutures.com/techwire/united-kingdom-alternative-lending-market-report-2023-challenger-banks-and-digital-lenders-are-recording-strong-growth-amid-the-current-macroeconomic-environment/
²³ https://blog.tbrc.info/2023/11/revenue-based-financing-market/
²⁴ https://www.globenewswire.com/news-release/2023/11/20

You might be experiencing the following funding problems as a recruitment company: 

• You regularly experience a cash flow gap. You pay your contractors but then have to wait for the contract owner to pay you. 
• You might find it difficult to secure a traditional term loan, or you may avoid them due to their inflexibility and long-term commitment. You may be unsure about working with a specialist recruitment company.
• A business overdraft is becoming tricky to manage, and you’re worried about overborrowing. 
• You need funding fast, and you don’t want to wait weeks to hear back from the banks just to find out how much they can lend you. 

This article will explain your options as a recruitment financing company, whether you should opt for a specialist recruitment financing company, and go into detail on invoice financing. 

In this article: 

What are your options as a recruitment financing company?
Invoice financing: alleviate cash flow pinches by getting an advance on your invoices
How a recruitment agency can use invoice financing to cover cash flow gaps
How to get started with Financefair
Why choose Financefair? 

Talk to our experts to find out how Financefair can grow your business 

What are your options as a recruitment financing company? 

You’ve probably already looked into getting a business loan to give your business some breathing room while you wait for unpaid invoices. Finding funding as a recruitment company can be difficult due to the stringent requirements and inflexibility inherent in traditional funding systems. 

Fortunately, there are other financing options that might be a better fit. Here’s an overview: 

Financing Option	Pros	Cons
Bank loan	Fixed interest rates and predictable payments.	Requires collateral and has strict qualification criteria Lengthy application process Requires a personal guarantee
Business overdraft	Access funds as needed Quick setup compared to loans	Higher interest rates than loans: fees for exceeding limit Not suitable for long-term financing, can encourage overspending
Selective invoice financing	Get an advance only on your most significant invoices: less resource intensive than full book Funds in your account within 24 hours (with Financefair) Doesn’t require a personal guarantee (with Financefair)	Can cost more than traditional financing, like business term loans Less working capital than if you opted for full book
Full book invoice financing	Get an advance on a large amount of working capital (from all of your invoices) Funds in your account within 24 hours (with Financefair) Doesn’t require a personal guarantee (with Financefair)	Can be operationally intensive, especially if you have lots of smaller contracts
Invoice factoring (including specific recruitment financing products)	Outsourced credit control. The factoring company manages collections Quick access to funds: improves cash flow	Customers deal with the factoring company, which could impact customer relationships Fees and the percentage of invoices taken as commission can be high.

 

At Financefair, we can offer solutions directly aligned to the receivables generated when you generate your revenue (even if that’s on a recurring revenue basis). We offer invoice financing (both selective and full-book), to enable you to get an advance on funds already owed to you, so you can alleviate a cash flow pinch and take advantage of growth opportunities – without giving up equity or getting into long-term debt. 

Read on to learn more about invoice financing and why it’s an excellent fit for recruitment companies. 

Invoice financing: alleviate cash flow pinches by getting an advance on your invoice 

Invoice financing, also known as invoice discounting, is a financing facility that allows you to use your existing customer book to inject capital into your business. 

This facility enables you to get advance on existing invoices to alleviate the cash flow pinch that comes with waiting 30-60 days for your invoice to be paid. 

Invoice finance facilities are either undisclosed or disclosed: 

• Undisclosed or confidential: Customers don’t know you’re using invoice financing. This is a discreet option, meaning you continue to handle your own invoices, payments, and collections. Financefair offers confidential invoice financing. 
• Disclosed or non-confidential: Disclosed invoice finance means your customers will know that you’re using finance. A lender might decide to impose a disclosed facility on a company based on risk factors. One form of disclosed invoice financing is invoice factoring. With this facility, the lender takes an operational role in the business, essentially taking over credit control and payments. Financefair offers undisclosed facilities. 

You have the option to choose between full book and selective invoice financing: 

• Full book invoice financing means raising all of your business’s invoices. While this allows you to advance more capital, it can be resource-intensive and time-consuming, so it’s best suited for a larger recruitment company. 
• Selective invoice financing involves raising only your most significant invoices. This is a popular option for recruitment companies with a few large and many smaller invoices. It’s less operationally intensive and easier to manage than full book. Financefair is the only provider of selective invoice financing in Ireland. 

Here’s how invoice financing works in action: 

1. You’re waiting to get paid for an outstanding invoice from the contract owner but are committed to paying your contractors weekly. As such, you’re experiencing a cash flow gap.
2. You raise an invoice (either all of your invoices if you have a full book agreement or specific invoices if you’re on selective invoice financing). 
3. Your facility provider will send you an advance. This will be a pre-agreed percentage (agreed upon when you set up with us). At Financefair, we can offer you up to 90% of the invoice value and deposit the money in your account within 24 hours.  
4. Your customer will pay for your invoice in a separate account managed by your financing provider. If it’s a disclosed facility, your customers will know: if not, they’ll assume they’re paying your business directly. 
5. Once your customer has paid the invoice, your provider will send you the remaining percentage of the invoice minus fees. 

There are specialist recruitment financing solutions that will do this for your business. However, you often have to take a larger financial package – including credit control, payroll, etc. 

While this might suit some recruitment businesses, it can be expensive, and many business owners prefer to retain more control. 

Interested in a selective facility? Learn more in our selective invoice financing guide

What to consider when choosing an invoice finance provider

There are a few things to keep in mind when you’re choosing an invoice financing provider:

1. Advance rate: With invoice financing, your lender will offer you a percentage of the invoice value. This usually depends on the lender’s risk appetite and your business circumstances. Financefair offers up to 90% of the invoice value. It’s essential to ensure you get a high enough rate so you have enough access to capital to get you through a cash flow pinch.
2. Cost of funding: Our invoice financing costs range from 0.75% to 1.50% per 30 days. Here’s an example of what a invoice financing facility might cost you: 

Size of Facility	Cost per 30 Days
€100,000	€1,000
€500,000	€5,000
€1,000,000	€10,000

Our pricing is simple. We’ll charge you an annual platform fee and monthly facility fee (on full book facilities)– minus any discount for a high credit score.

(To get a specific cost for your business, try the calculator on our invoice discounting page)

3. Full book or selective invoice financing: Full book involves financing all your raised invoices. It’s slightly more expensive than selective financing and requires more operational effort. On the other hand, selective invoicing is slightly more cost-effective and permits the financing of only the invoices you choose to raise. Financefair is the sole provider of selective invoice financing in Ireland.

Here are the invoice finance providers in Ireland, the facilities they offer, and their advance rates:

Provider	Facilities Offered	Invoice Value
Financefair	Full book invoice financing, Selective invoice finance facility	Up to 90%
Close Brothers¹	Full book and invoice factoring facilities	Up to 90%
Bibby²	Full book and invoice factoring	80-100%
AIB³	Full book invoice financing	Up to 85%
Bank of Ireland⁴	Full book invoice financing	Up to 85%

Banks tend to offer disclosed facilities, meaning that your customers will know you’re using invoice finance. Alternative providers offer a mix of disclosed and undisclosed facilities, depending on your individual circumstances. 

Financefair offers undisclosed invoice financing, so your customers aren’t aware you’re using the facility. 

Unsure if selective or full book invoice financing is right for your business? Get in touch with our team

Should you choose invoice factoring or a standalone invoice finance facility? 

Many financing companies offer a ‘recruitment finance’ product, which is usually a form of invoice factoring. This is where your financing company essentially takes over the credit control of your business.

Invoice factoring can be a good fit for your recruitment business if: 

• You have a small team and limited time: Invoice factoring can be a good fit for small teams who need external support in managing credit control.
• You’re willing to entrust aspects of your business to a third party: Entrusting operational aspects such as credit control to a third party can ease your workload, allowing you to dedicate attention elsewhere.

On the other hand, taking out financing through a standalone invoice financing, like Financefair, might be better for you if:   

• You want low-commitment, flexible funding: Invoice financing is a fairly low-commitment option, especially if you choose selective invoice financing. You only need to raise invoices you choose to, so you’re not obligated to take out financing each month. Invoice factoring can require more commitment and have increased administration.
• You have budget constraints: Invoice factoring facilities are typically more expensive than standalone invoice financing, due to the financing company managing credit control. 
• You’d prefer to maintain business control: While some business owners are comfortable outsourcing significant business operations, others prefer to keep control in-house.

To discuss your funding needs and get the best facility for your business, get in touch with our experts

How a recruitment company can use invoice financing to cover cash flow gaps

Consider a recruitment company that supplies temporary workers: they pay contractors weekly but must wait 30 days (or longer)  for contract owners to settle invoices, leading to a significant cash flow gap. This strain on liquidity hampers daily operations, causes anxiety, and stalls potential growth opportunities.

The business initially completed an application form for Financefair, which they were able to do completely online. However, they decided to contact our expert team for personalised advice on their financing. After discussing their business and growth ambitions with our team, the business decides on invoice financing. They opt for selective invoice financing in order to improve business operations by minimising friction in obtaining working capital.

Here’s how it works in practice: 

• The recruitment agency identifies a high-value invoice—say, €30,000—due in 30 days. 
• They raise the invoice through Financefair selective invoice financing and receive 90% of the invoice value (€27,000) in their account within 24 hours. 
• This capital injection alleviates the cash flow pinch, enabling the recruitment company to meet payroll, invest in marketing, and take on additional contracts without waiting for the payment cycle to complete.

Financefair’s solution uniquely suits the recruitment sector, offering local expertise and the flexibility to increase funding as your customer base expands and revenue grows. 

This means the recruitment agency is not locked into a one-size-fits-all approach but has access to a range of solutions, including revenue based finance and business line of credit, ensuring they can adapt their financial strategy to match their evolving needs.

How to get started with Financefair

We can work with Irish recruitment companies who meet the following eligibility criteria:

• Limited company with at least two directors
• Trading for at least 2 years
• Minimum annual turnover of €1M+
• Average debtor book of €500,000
  

Getting started is easy:

1. To apply:
   1. Contact our team, who can discuss your company’s funding requirements. We can let you know if your company is eligible and our recommended facility for your needs. Call +35315252486, email busdev@financefair.com, or book an appointment with an expert. 
   2. Complete a funding application form. This takes less than 5 minutes. 
2. Offer: We’ll send over an indicative offer within 24 hours. 
3. Onboard: If you’re happy with the offer and wish to accept it, we’ll onboard you onto our online platform and run KYC and AML identity checks.
4. Funding: Once we’ve set your facility up, we can get funds into your bank account within 24 hours. 

Ready to get funding? Apply today 

Why choose Financefair for invoice financing?

Invoice finance solutions are becoming an increasingly popular option for recruitment companies. It allows you to alleviate a cash flow pinch without getting tied into long-term debt or giving up equity. But why should you use Financefair? Here are a few reasons:

We offer selective invoice financing, so you don’t have to finance your whole debtor book

At the time of writing, we’re the only provider of selective invoice financing in Ireland. While we offer full book financing, selective financing can be a good choice for recruitment companies with a few significant contracts and many smaller ones who want to limit operational resources. 

Here’s an example of where selective invoice financing could be a good fit: 

• You currently have three large contracts and seven smaller ones. 
• You pay your contractors but have to wait 30-60 days to get paid by the contract owner.  
• The three large contracts cause the cash flow pinch, and you’re happy to wait for the smaller ones. 
• Selective invoice financing allows you to get an advance only on the three large contracts, without the admin and operational costs of raising all ten.

Financefair can advance invoices from €30,000 and provide a facility of up to €5m (if your company meets our criteria). 

Since we’re a standalone invoice financing solution, you won’t have to pay the additional fees that come with a specialist recruitment agency.

We can alter your funding solution as your business grows 

Whether you choose selective or full book invoice financing, you won’t be trapped in a long-term commitment. We regularly check in with your business to ensure you get the best possible funding solution to grow your business.

For instance, you might decide to start with selective invoice financing, but soon have many larger contracts and a bigger team. In that case, we can simply move you from a selective to full book invoice financing facility. We also offer two other forms of financing: 

• Revenue based finance: Where you use your projected revenue to inject capital into your business. 
• Line of credit: A pre-approved funding line, where you can access instant working capital and draw on it when needed. You only pay for what you use. 

The Financefair team has decades of financial services experience. When you reach out, we’ll take the time to understand your business needs. We’ll use data analytics to assess your funding requirements, to get you the best growth option possible for your business.

Our platform is seamless, and won’t take up your teams time and resources 

Many invoice discounting providers require you to upload financial information on a specific day of the week (sometimes even at a specific time). If you don’t, you could be subject to fees. This manual process can be time-consuming and eat up a lot of your team’s resources. It can be hard to focus on your company growth when you’re bogged down by frustrating admin.

But with Financefair, our platform accesses your financial information seamlessly through secure data analytics so we can automatically get the data we need. This means you don’t have to worry about checking in each morning to update your financials, and saves you and your team valuable time and resources.

The seamlessness of the Financefair platform enables us to provide your business with an indicative offer in just 24 hours. And once we have all of the necessary documentation and you’re onboarded to the platform, we can disperse funds in 24 hours. 

Use invoice financing from Financefair to cover cash flow pinches and grow your recruitment business 

As a growing recruitment business, a cash flow pinch can seriously harm the health of your business. 

With invoice financing from Financefair, you can get an advance on up to 90% of your future invoices. This gives you the peace of mind that you have the capital you need to get through a cash flow gap and grow your business – without getting into long-term debt. 

Ready to get started? Apply today

Sources:

¹https://www.closeinvoice.co.uk/

²https://www.bibbyfinancialservices.com/funding/invoice-finance-products

³https://aib.ie/business/loans-and-finance/finance/invoice-finance

⁴https://businessbanking.bankofireland.com/credit/finance/invoice-finance

Funding the scale of your software as a service (SaaS) business can be challenging. Banks often won’t loan to you as you don’t have tangible assets, and your financing options might feel limited to taking on bank debt, or giving up equity – both of which have restrictive terms. 

In your search for financing, you’ve probably experienced the following: 

• You want to get your funding sorted as soon as possible: you don’t want to wait weeks for an answer.
• You’re struggling to be accepted for traditional funding. Traditional funders typically don’t support SAAS business models.
• You don’t want to commit to a multi-year term loan and want a more flexible, lower-commitment option. 
• You don’t want to give a personal guarantee and put your home and personal assets at risk. 

This article will run you through your options for financing as a SaaS company. 

In this article: 

• What are the finance options for a SaaS company?
• Revenue based financing: capital that grows with you
• Line of credit: funding you can tap into when you need it
• Why choose Financefair?
• How a SaaS company used revenue based financing to grow their business and retain equity

Are you an Irish SaaS business looking for business funding? Get in touch

What are the finance options for a SaaS company? 

Here’s an overview of the most popular forms of financing for a SaaS company:

Type of Funding	Description	Pros	Cons	Growth Stage
Bank loans	Traditional term loan from banks	No equity dilution Clear repayment terms Can have lower interest rates than alternative lending	Requires proof of profitability or collateral Difficult to get accepted for as a SaaS business Inflexible: you’re tied in for the length of the loan	Scaling (mature businesses)
Revenue based financing	Financing tied to your future business projections	No dilution of equity Flexible repayment terms based on business performance No long-term commitment No personal guarantee (if using Financefair)	Can be more expensive than a traditional bank loan	Early Growth to Scaling
Online business line of credit	Works similarly to a digital overdraft	Only pay for what you use Revolving credit: once you pay off your borrowed amount, that funding is available again No long-term commitment No personal guarantee (if using Financefair)	Business banks usually require you to have a current account with them (unless you use a standalone lender like Financefair)	Early stage to early growth
Venture Capital (VC)	Investment from venture capitalist firms in exchange for equity	Access to significant capital, mentorship, and networks	Loss of equity Often high expectations for growth Highly competitive process to get funding	Early growth to scaling
Angel investment	Investment from high-net-worth individuals	More flexible terms than VC Access to investors’ expertise and network	Equity dilution Smaller amounts of capital compared to VC	Seed to early stage SaaS startups
Crowdfunding	Raising small amounts of money from a large number of people, typically via online platforms	Access to capital without giving up equity (if reward-based)	Requires significant marketing effort Not suitable for large funding needs Lack of consistent funding Can give up equity (equity crowdfunding)	Seed to early stage SaaS startups

As a provider of revenue based finance and line of credit, we’re going to go into detail about each option, so you can decide whether they’re right for your SaaS business. 

It’s worth noting that both revenue based finance and line of credit can be used in tandem with other finance options – like a bank loan, VC, or even crowdfunding. 

Prefer to talk to us right away to find out how RBF and LOC can help your business grow? Get in touch.

Revenue based financing: capital that grows with you

Revenue based finance gives you access to working capital that’s directly connected to the  revenue growth of your business. This allows you to grow your company independently leveraging off your future revenue from existing contracts, eliminating the need for long-term debt or an over-reliance on equity financing. 

Because we’re writing this article, we’ll run you through how revenue based financing works at Financefair. It might work slightly differently depending on the lender you use.  

If you’re an Irish business that meets the following criteria, you’re eligible for revenue based finance with us:

• Limited company in Ireland with at least 2 directors
• €1M+ Annual Revenue
• 2+ Years Trading
• B2B Revenue Model

Our process involves examining your forecasted revenue over the coming year alongside your anticipated growth trajectory.  When you apply for revenue based finance, we’ll start by evaluating your business’s cash flow forecasts for the upcoming 12 months. This helps us determine your maximum funding requirement—the largest amount of capital you anticipate needing within this timeframe.

We can offer you a maximum of 20% of your ARR or 70% of your quarterly revenue. These funds can be disbursed either quarterly or monthly, with adjustments made according to your growth projections.

Because we base the size of your facility on your company’s revenue, you can unlock higher funding amounts as your revenue grows. 

We’ll work with you to make sure that you have enough capital to manage any shortfalls in cash flow. Once we have all the information we need, we’ll calculate and confirm the total approved amount we can offer you.

For instance, we might authorise a credit line of €500,000 for the year, initially releasing €200,000, with subsequent disbursements timed to address provide capital injections at key growth periods where cashflow is maximised. This setup allows you to move forward over the next several months with confidence that you have secure funds available to handle a cash flow pinch. 

You can learn more about how it works in our revenue based financing guide. 

What happens if your revenue decreases? 

If your projected revenue increases (or decreases), the amount of funds you can access will change. However, we won’t just cut off your facility.

As a fintech company, we can use our advanced data analytics to quickly check how your company is performing, eliminating the need for constant updates on your financial standings. This means we can be proactive about reaching out to discuss potential changes in funding for the upcoming quarter based on your projected revenue.

How much does revenue based financing cost?

The terms and pricing for your revenue-based financing are established at the start of a 12-month arrangement. 

Your fee is based on:

• Your company
• Your company’s experience
• Average debtor days
• Average debtor book
• Turnover
• Funding limit
• Credit score

Our fees are straightforward

• Platform fee: This works like a joining fee. If you renew your facility after 1 year, the renewal fee will be 50% of the initial platform fee. 
• Monthly facility fee: This is a fixed fee charged on the facility limit we provide.. 
• Discount charge: The higher your credit score, the higher a discount we can offer on your agreed pricing.

You can pay for your financing in two different ways: 

• Per 30 days
• As a percentage of the cost of funding

Here’s what it might cost your SaaS business: 

Annual Recurring Revenue Including VAT	Estimated Amount of Funding We Can Advance	Estimated Cost per 30 Days
€500,000	€100,000	€1,500
€750,000	€150,000	€2,250
€1,000,000	€200,000	€3,000

Actual costs will vary, depending on your business.

Try the calculator for yourself on our revenue based financing page. 

The benefits of revenue based financing

• You’ll get a line of funding that’s directly related to the growth of your business. This reduces the chance of under or overborrowing, and your funding will scale up as your business grows. 
• It’s flexible and not a long-term commitment. Unlike with a term loan, you’re not tied into a multiple-year agreement with revenue based financing. 
• No need for additional applications: If you find that you need a higher level of funding to make the most of growth opportunities, there’s no need to fill in another application form. Just reach out to us. 
• It’s relatively low risk, which means we can keep security to a minimum. Because the money is only out for 90 days at a time, the risk is moderate. This reduces the security documentation you need to complete when you apply. 
• If you’re planning on bootstrapping, revenue based finance is a great working capital solution that doesn’t require giving away equity. However, it also works well alongside other forms of investments, such as venture capital or angel investors. If you decide to go after Series A funding in the future, a higher ARR can help increase your company valuation.

You can find out more in our revenue based financing guide. 

Line of credit: funding you can tap into when you need it

If your business isn’t quite ready for revenue based financing, or you just want to finance a smaller amount, a business line of credit is a great option for a SaaS company. 

A business line of credit functions like a digital overdraft facility, that you can tap into whenever you need it. You’ll only pay for what you use. 

Line of credit is best for SaaS businesses who need access to around €10,000 to €250,000 annually. 

Here’s the eligibility for a line of credit facility with Financefair: 

• Incorporated limited company in Ireland
• €1M+ Annual Revenue
• 2+ Years Trading
• B2B Revenue Model

As a SaaS business, you’ve probably found that there are certain points of the quarter where you experience a cash flow dip. Or perhaps you want the ability to make the most of growth opportunities, without worrying if you have the capital to do so.

With a business line of credit, you have quick access to a source of working capital. You can initiate a transfer through our online platform, and receive funds in 24 hours. 

This is a far more flexible and efficient option than more traditional funding, like a term-loan, where you have to lock in for a certain amount of time. Likewise, this is a revolving line of credit – once you pay the funds off, you can access them again. 

Many banks offer a business line of credit, but you usually need to have a current account with them, and have had your account open for a certain amount of time.

Financefair is the only provider of a standalone business line of credit in Ireland. 

Our pricing is transparent: costs typically range from 0.75% to 1.50% per 30 days, depending on your business.

You’ll pay:

• A monthly fee of 0.6-0.75% 

• The platform joining fee 

• Depending on your credit rating, there may be a discount applied

The benefits of business line of credit

• Allows you to fund milestone needs in the business. Perhaps you need to upgrade expensive equipment as your operations expand, or work on product development for your software. A line of credit facility gives you the funds to do so.
• SaaS funding that you can access quickly to make the most of a growth opportunity. Perhaps you have the chance to tender for a big client, but want to make sure you have the upfront capital to deliver. You can tap into your line of credit funding and get paid within 24 hours.
• It’s flexible, and you only pay for what you use. With a business line of credit, you’re not stuck in a long-term financial commitment. We won’t charge you if you don’t use it.
• No equity dilution, and no personal guarantees. We won’t take any equity in your business, and we won’t ask for a personal guarantee – so you’re not putting your personal assets at risk. 

A business line of credit gives you the peace of mind that you have the funds there if you need them.

Interested in a business line of credit? Apply today in 5 minutes

Why choose Financefair for your SaaS financing? 

You might be interested in revenue based financing and line of credit for your SaaS company: but why should you choose Financefair?

Here are a few reasons:

Get more funding sooner, thanks to our innovative business model

Thanks to our unique business model, we’re able to advance a larger amount of funds to business without tangible assets – like SaaS companies. 

That’s because unlike banks, we don’t fund directly from our balance sheet. We partner with enthusiastic investors who understand SaaS businesses, and can advance the funding you need to grow. This means you might get 20% from one, 50% from another, and so on. This diversification enables you to get more funding than you would with a traditional lender. 

You have more flexibility to choose multiple types of financing 

Both revenue based financing and line of credit are far more flexible than a bank loan. You’re not left waiting until your term-loan ends before you can apply for a higher amount of funding. 

And when you sign up to Financefair, it’s simple to move from one funding facility to another. 

For example, you might be an early stage SaaS business who is best suited to an online line of credit in the short-term. However, your business plans works as planned and your monthly revenue is increasing – soon, the funding level of a line of credit might not be enough. In that case, you can easily switch to a more appropriate financing solution, like revenue based finance.

Once you’re on-boarded, our experts are always on-hand to discuss your facility, and move you to a different one if it will suit your business better. 

Get an indicative offer within 24 hours

It can be frustrating waiting to find out how much financing you can receive from a lender. You can spend weeks waiting, just to find out the amount you can borrow is too low. 

At Financefair, we can give you an indicative offer in one business day. And when you’re onboarded on our platform and we have all your documentation, you can access funds within 24 hours.

We’re able to do this because of our platform and our use of data analytics. We’ll have access to real time account data metrics, and can make a decision quickly, reducing friction and admin time. We’ll also regularly check-in to discuss your business, and discuss how we can change your facility – based on your needs.  

Our team has decades of experience in financial services, and we can help guide you to the best solution for your SaaS business. 

Other benefits of using Financefair include:

• None of our funding options require you to give up equity in your business. 
• We’re the only provider of revenue based financing and standalone business line of credit in ireland. 
• You don’t need a personal guarantee. There’s no need to put your home and personal assets at risk to grow your business. 
• You won’t be charged any hidden annual fees or costs. Our pricing and monthly payments are clear from the outset. 

Interested in Financefair but not sure where to start? Reach out to our friendly team, who can help find the best solution for your business.

How a SaaS company used revenue based financing to grow their business and retain equity

A company specialising in retrofitting fleet vehicles with dash cameras for enhanced security and providing software for data collection approached us for financial guidance.

Their technology bolstered security and gathered valuable data for businesses and the insurance sector.

Despite their innovative service they found themselves in a financial dilemma when it came time to scale.

Eager to secure €4 million in additional funding to penetrate new markets and solidify their vision, they were reluctant to dilute their ownership by parting with more equity.

Understanding their predicament, we proposed a solution tailored to their growth objectives without the need for equity sacrifice: revenue based financing. This flexible financing model aligned perfectly with their working capital financing strategy, allowing them to leverage their incoming revenue for growth capital.

We extended to them a €1.5 million revolving funding line, which we disbursed in stages, calibrated closely with their business forecasts. This strategic funding approach provided them with the immediate capital required to forge ahead, while also granting them the flexibility to manage their finances more effectively.

Thanks to this arrangement, the company was able to postpone its search for investment funding by approximately 12 months. This crucial period of financial breathing space enabled them to not only refine their funding strategy but also to significantly reduce the amount of additional investment needed. As a result, they successfully preserved a larger share of their business ownership, positioning themselves more favourably for future growth and success.

Choose Financefair for your SaaS financing 

Without tangible assets, it can be a challenge to get a level of funding you’re satisfied with from a traditional lender. 

However, with facilities like revenue based finance and business line of credit from Financefair, you can secure the funding and support you need to grow your business – without diluting equity.

If you’re a SaaS business in Ireland that meets our eligibility and is looking for non-dilutive financing, apply today, and let’s discuss how Financefair can grow your business. 

As an ecommerce business looking for funding, you’ve probably experienced the following: 

• You need funding as soon as possible, but you don’t want to wait weeks to get accepted for a bank loan and even longer to get the funds. 
• You’re looking for more flexible financing. You want to avoid committing to a multi-year term loan, and you’d prefer funding that is always available: without having to make al on application. 
• You’re reluctant to give a personal guarantee. You don’t want to put your personal assets, like your home, at risk. 
• You’re an Irish ecommerce business and need a financing partner that can fund you in Ireland. 

At Financefair, we’ve helped many ecommerce companies grow, using facilities like revenue-based finance and business lines of credit. We’ll discuss these two facilities in depth and how they can benefit an ecommerce business.  

In this article: 

• What are the finance options for an ecommerce company? 
• Revenue based financing
• An example of this in practice: How revenue-based financing helped this ecommerce business grow without debt or equity
• Online business line of credit
• Why choose Financefair?

Wondering how we can help you grow? Get in touch with our expert team

What are the funding options for an ecommerce company? 

Bank loans are the most common form of funding for most businesses. But there might be some other funding options that you’re not aware of that might be better suited for a growing ecommerce store:

Funding Type	Description	Pros	Cons
Bank loans	Term loans offered by banks with fixed repayment terms and interest rates	Generally lower interest rates than alternative lenders	Strict qualification criteria Long approval times Lacks flexibility Requires a personal guarantee
Revenue based finance	Funding that’s tied to your projected revenue	Flexible repayment terms Based on your projected revenue, so can increase as your business grows No personal guarantee (with Financefair)	Can be more expensive than traditional loans Not suitable for new businesses (less than 2 years)
Business line of credit	A revolving credit that businesses can draw upon as needed, up to a predetermined limit. Works similarly to a digital overdraft	Flexible Only pay interest on what you use No personal guarantee (with Financefair)	Requires good credit Can have high-interest rates if not managed well
Merchant cash advance	An advance on future credit card sales, repaid via a percentage of those sales	Fast access to cash No need for traditional collateral	High costs and fees Percentage of credit sales can significantly impact profit margins
Crowdfunding	Funding your business through small investments from a large number of people	Access to a wide pool of investors	No guarantee of reaching funding goals Public failure if goal not met Requires a significant marketing effort Loss of equity (depending on crowdfunding type)
Angel investing	Individual investors providing capital for a business start-up, usually in exchange for convertible debt or ownership equity	Potential for valuable mentorship	Loss of some control and equity It can be challenging to find the

At Financefair, we can offer ecommerce businesses revenue based finance and line of credit. We’ll go on to explain each option in more detail to help you decide if it’s right for your business. 

Both revenue based finance and line of credit can be used alongside other finance options, including bank loans and VC. 

Rather get started right away? Get in touch

Revenue based financing: capital that grows with you

Revenue based finance is a financing facility that unlocks trapped liquidity in your business. 

The funds a lender will advance are directly linked to your future business performance. This means you won’t over or under-borrow – which is especially important for an ecommerce business, where sales can ebb and flow.

At the time of writing, Financefair is the only revenue based finance provider in Ireland. 

Here is our eligibility criteria for revenue based finance:

• Limited company in Ireland – at least two directors
• You’ve been trading for at least one year
• Minimum turnover of €1m

Our experts will examine your projected revenue and predicted growth trajectory over the next year. This information allows us to calculate your maximum funding requirement (how much you might need within 12 months).

From there, we can offer you a maximum of either:  

• 20% of your Annual Recurring Revenue (ARR)
• 70% of your quarterly revenue

We can pay your funding monthly, quarterly, or a mixture of both.

Our goal is to ensure that you have the capital you need to manage any cash flow pinches and take advantage of growth opportunities. For example, we might offer your company a credit line of €500,000 for the year. We’ll initially release €200,000 and disburse the rest of the funds when your business experiences a cash flow dip.

And because your available funding depends on your company’s projected revenue, you can access higher funding levels as your business grows.

If your company’s projected revenue decreases, we’ll advance fewer funds but won’t cut off your facility. And because we’re a fintech company, we can use advanced data analytics to determine how your company is performing and be proactive, without the need for constant check-ins.

Learn more in our revenue based financing guide. 

How much does revenue based financing cost?

The costs of revenue-based finance are transparent––you’ll know what you’ll pay at the start of the 12-month agreement. There are no hidden costs. 

We’ll calculate your fee based on:

• Your company
• Your company’s experience
• Average debtor days
• Average debtor book
• Turnover
• Funding limit
• Credit score

You’ll pay:

• Platform fee: This fee covers your joining our platform. If you stick with your facility after one year, you’ll pay less. The renewal fee is 50% of the initial platform fee.
• Monthly facility fee: This is the fixed fee we charge you based on the facility limit we’re providing. 
• Discount charge: We can offer you a discount on pricing based on your credit history.

You have two options in how you pay for your funding: 

1. Per 30 days
2. As a percentage of the cost of funding

Here’s an example of what revenue based finance might cost your business: 

Annual recurring revenue including VAT	Estimated amount of funding we can advance	Estimated cost per 30 days
€500,000	€100,000	€1,500
€750,000	€150,000	€2,250
€1,000,000	€200,000	€3,000

Please note: actual costs depend on the individual circumstances of your business 

To get a more specific cost for your business, try the calculator on our revenue based financing page. 

The benefits of revenue based financing

Revenue based financing is an excellent option for ecommerce businesses in a growth stage.

Here’s why: 

• You’ll receive funding that aligns with your business’s expansion. This approach minimises the risks associated with borrowing too little or too much, allowing your funding to grow concurrently with your growth. 
• It offers flexibility without the need for a lengthy commitment. In contrast to traditional term loans, revenue based financing doesn’t lock you into a multi-year contract.
• There is no extra paperwork required. If you need more funds to capitalise on growth opportunities, you won’t have to submit a new application. You can simply contact our friendly team.
• Less admin and paperwork. Revenue-based financing is a relatively low-risk form of lending. We only advance funds for 90 days at a time, so we need less security documentation, reducing admin time. 
• Revenue-based financing is compatible with other investment types, including traditional bank loans, venture capital, and angel investments.

When does it make sense to use RBF as an ecommerce company?

If your ecommerce business encounters any of the following, revenue based finance can help:

• You experience seasonal fluctuations, with your sales ebbing and flowing throughout the year. Revenue based finance offers the flexibility to manage inventory and marketing efforts in line with these peaks and troughs, allowing for strategic investments during high-demand periods without the pressure of fixed repayments in slower seasons.
• You’re aiming to expand your product range or enter new markets, so you need an immediate capital injection. Revenue based finance provides scalable funding aligned with your sales performance, so you can facilitate growth without overburdening your business financially with long-term debt.
• You want to take advantage of bulk-buy stock discounts. As an online seller, understocking can significantly affect your profitability – but you might be nervous to invest too much capital into stock. Revenue based finance gives you the confidence to manage stock levels, and take advantage of bulk-buy discounts. 

An example of this in practice: How revenue-based financing helped this ecommerce business grow without debt or equity can grow an ecommerce business

Imagine your Shopify ecommerce business experiences a monthly revenue growth rate of 25%, starting from an initial revenue of €250,000. This growth trajectory forecasts the following revenues over the next six months:

Month 1	Month 2	Month 3	Month 4	Month 5	Month 6
€250,000	€312,500	€390,625	€488,281	€610,352	€762,939

After taking the time to discuss your business needs with you, we agree to advance funds based on your revenue forecast, starting quarterly (for an initial boost of capital) and then moving to a monthly basis.

Here’s how it works: 

Initial quarterly advance: 

• At the start of month 1, we offer an advance based on 70% of the combined forecast revenue for the first three months (€250,000 + €312,500 + €390,625 = €953,125).
• Therefore, 70% of €953,125 equals €667,188. This is the amount we’ll initially advance at the start of month 1.

Monthly advances: 

• By the end of Month 1, with your anticipated revenue of €250,000, you will be positioned to start repayments. Specifically, you’ll repay 70% of the funding we advanced based on your Month 1 revenue. This means you will repay €175,000 at the end of Month 1 (70% of €250,000).
• With your quarterly advance paid, as agreed, we’ll move to a monthly advance schedule. At the end of Month 1 (or the beginning of Month 2), we will advance 70% of your projected Month 4 revenue, which amounts to €341,797 (70% of €488,281).
• At the end of Month 2, upon receiving your actual revenue of €312,500, you will repay 70% of this amount, totalling €218,750.

This pattern continues with advances and repayments based on the upcoming month’s projected revenue and the actual revenue received.

In this scenario, the advances you receive functions as a revolving credit line, grounded in your projected income for the upcoming month. This setup enables you to leverage your forthcoming revenue as a means to grow. 

With the financing in place, an ecommerce company can use the funds to:

• Capitalise on bulk inventory discounts to enhance profit margins.
• Address cash flow variances, ensuring smooth operation despite sales fluctuations and securing timely payroll and contractor payments.
• Boost digital marketing efforts across SEO, social media, and pay-per-click campaigns, driving sales and expanding its customer base.
• Invest in new product development, or expand your base of operations 

Through Financefair’s revenue based financing solution, an ecommerce company can sustain its upward trajectory and lay a foundation for future growth – without taking on long-term debt or diluting equity. 

Wondering if revenue based finance might be the right business funding for you? Apply today 

Online business line of credit: only pay for the funding you use 

An online business line of credit works like a digital overdraft. You have a line of funding you can tap into when you need to, and you’ll only pay for what you borrow. The credit line is revolving, so once you’ve paid it off, it’s accessible again.

This form of business financing is usually better suited to online sellers that aren’t quite ready for revenue based financing, and looking for yearly funds from €10,000 to €250,000.

Here are the eligibility requirements:

• Must be an incorporated limited company registered in Ireland.

• Have been operating for a minimum of one year.
• Achieve a yearly turnover of at least €250,000.

As an ecommerce business, you’ll know that it’s common to encounter cash flow challenges during specific periods of the quarter. You might also be looking for funding to take advantage of business growth opportunities. 

A business line of credit offers fast and easy access to working capital. With Financefair, you can transfer funds and receive them within 24 hours.

This method is significantly more convenient than traditional funding solutions, like business loans, which require a commitment to a set duration (usually three to five years). Unlike with a loan, you can pay off your credit line, and instantly have access to that funding again. There’s no need to re-apply. 

While many banks provide business lines of credit, they often require you to hold a current account with them (usually for at least a year). 

Financefair is the only provider in Ireland that offers a standalone business line of credit, without needing an accompanying bank account. 

Our pricing structure is clear and straightforward: charges usually vary between 0.75% and 1.50% every 30 days, based on the specifics of your business.

You’ll pay: 

• A monthly fee ranging from 0.6% to 0.75%
• The fee for joining the platform
• A potential discount based on your credit rating

How much funding could you get?

Your approved line of credit depends on your annual turnover. Here are a few examples: 

Annual turnover including VAT	Line of credit you could be approved for
€250,000	€50,000
€750,000	€150,000
€1,250,000	€250,000

The benefits of business line of credit

There are four key reasons to consider a business line of credit: 

1. Flexibility: A line of credit offers the flexibility to finance key milestones within your business. Whether it’s upgrading costly equipment as part of your operational growth, or advancing product development, a line of credit means you always have an easy-to-access source of capital. 
2. Fast access to capital: If you’re presented with the chance to bid for a significant client but need assurance of upfront capital for delivery, a line of credit can be tapped into, with payment received in just 24 hours.
3. Only pay for what you use: With a line of credit, you only pay for what you use, avoiding any long-term financial obligations. It’s also a revolving line of credit, so you can reaccess those funds once you pay off what you owe. 
4. No dilution of equity or personal guarantees: Opting for a line of credit doesn’t dilute equity, and we don’t require a personal guarantee. As a business owner, this means your business equity remains intact, and your personal assets are not at risk.

A business line of credit gives you the peace of mind that funds are available whenever yo need them. 

Apply today in just 5 minutes

When does it make sense to use line of credit as an ecommerce company?

Line of credit differs from revenue based finance in that it’s not tied directly to your projected growth. Instead, it works more like an overdraft and might be a better fit for early-stage ecommerce businesses who: 

• Need immediate, flexible access to capital for short-term needs. With a line of credit you can access funds only when you need them, and you aren’t penalised for having an available line of credit. You only pay for what you use. By having a line of credit facility, you can better prepare your business financially for short-term business expenses, without the commitment of a loan.
• Are looking to smooth out cash flow irregularities. Ecommerce businesses often experience volatile cash flows due to seasonal sales patterns or varying payment processing times. A line of credit can provide a buffer to manage these irregularities, ensuring you have capital on hand to cover operational expenses as they arise.
• Would prefer a revolving fund without a direct tie to revenue. If you’re an early-stage ecommerce business, your projected revenue may not be strong enough yet for revenue based finance.  A line of credit offers similar benefits by giving you a revolving fund you can draw from, payback, and then draw from again, offering ongoing access to capital. 

Looking to learn more about other types of financing? Read our other guides:

• Invoice discounting: How to get started
• Term loans: What you need to know, and the alternatives

Why choose Financefair for your ecommerce financing? 

Both revenue based financing and line of credit can be a powerful growth tool for ecommerce businesses. But what makes Financefair the right finance provider for you? 

Here are three reasons to consider us: 

1. Our innovative business model means you can get more funding

Thanks to our innovative business approach, we can offer significantly more funding to ecommerce businesses than banks might be able to. 

Banks’ funding is limited to their balance sheet. At Financefair, we collaborate with a network of investors ready to provide financial support for your business’s expansion.

This could mean securing 30% of your funding from one investor, 40% from another, and varying percentages from additional sources. 

This diversification strategy allows us to offer higher funding levels than what’s typically available through conventional lenders.

2. Low commitment: flexibility to switch financing solutions with ease 

Both revenue based financing and lines of credit offer greater flexibility than traditional bank loans. There’s no need to wait for a term loan to conclude before seeking additional funds.

For even more flexibility, transitioning between financing solutions at Financefair is straightforward.

For instance, if you’re in the early stages of your ecommerce business, a line of credit may initially suit your needs. But as your business and revenue grow, you might outgrow this option and need a higher level of funding. 

At that point, our experts can help you switch to a better solution, like revenue based finance, without having to go through a funding application process again. 

3. Receive an indicative offer in just one day 

Waiting for funding approval can be tedious and disheartening, especially when the offer falls short of your expectations.

With Financefair, you can get an indicative offer within a single business day. Once we’ve gathered all the necessary documentation and fully onboarded you to our platform, accessing funds can take as little as 24 hours.

Thanks to our innovative platform and analytics capabilities, we can access real-time account data to make fast funding decisions and minimise wait times. 

Additional advantages of choosing Financefair include:

• None of our facilities require sacrificing equity in your business.
• We are the sole provider of both revenue based financing and independent business lines of credit in Ireland.
• You don’t have to put your home and personal assets at risk: we’ll never ask for a personal guarantee
• Our pricing is transparent from the beginning. There are no hidden fees or hidden charges.

Got questions?  Contact our team, who will help you find the best funding solution for your business 

Grow your ecommerce business with flexible funding options from Financefair 

For a growing and ambitious ecommerce business, traditional bank loans often don’t cut it –  due to their long approval times and inflexible terms.

In this article, we’ve explored more innovative financing solutions that align with the unique needs of ecommerce businesses in Ireland: revenue based finance and online business line of credit.

Whether you’re navigating seasonal sales fluctuations or looking to expand, Financefair’s founding solutions offer the support your business needs to thrive.

Ready to fuel your ecommerce growth? Get funded

Term loans are a popular option for businesses in Ireland. They’re easy to understand — you borrow a certain amount, at a fixed interest rate, for a set length of time. 

However, you might face the following problems:

• Frustration at the inflexibility of loans and how long it takes to extend your funding if your business needs change.
• Issues getting the funding amount you need from your business bank at an interest rate you’re happy with. 
• Waiting weeks for a decision on a loan application and potentially missing growth opportunities. 
• You need to know in advance if you can get the funding you need to fulfil a contract you want to tender for.

This article will look at the providers offering business term loans in Ireland. We’ll then consider three alternatives that could be better for your company’s situation and needs: revenue-based finance, invoice discounting, and line of credit facilities. 

We’ll cover:

• Term loans in Ireland: What options are available?
• Term loan alternatives
• Why choose Financefair?

Reach out to us to discuss how we can fund your company with solutions that are much more flexible than a term loan. 

Term loans in Ireland: What options are available?

Your options for term loans in Ireland include: 

• Banks: Term loans are available from the three main banks in Ireland:
  • Bank of Ireland: For loans up to €120,000, you can apply online and should hear back within 24 business hours, while loans over €120,000 can take longer to arrange. You can borrow up to €120,000 with an unsecured loan, with terms of up to 7 years.1
  • AIB: For loans up to €300,000, download the online application form and return it to your branch or relationship manager. For loans over €300,000, you’ll need to speak directly to your branch or relationship manager.²
  • PTSB: Download the application form online and take it to your local branch. Both short- and long-term loans are available, with terms of up to 10 years.³
• Peer-to-peer lenders: A term loan from a traditional bank involves borrowing from a single, regulated financial institution under standardised terms. A term loan from a P2P lender involves borrowing from multiple individual investors through an online platform, often with more flexible terms and eligibility criteria. Some SMEs are offered lower interest rates with peer-to-peer loans. A well-known lender in Ireland is Linked Finance, who offer loans from €10,000 to €500,000 (that last up to 5 years).⁴

Term loan alternatives

With term loans, you borrow a fixed amount and pay off the loan in monthly installments, plus interest, based on your agreed repayment schedule.

While this arrangement may be suitable for personal loans, it can limit business growth due to the difficulty in quickly adjusting funding. However, other well-established options offer greater flexibility and an approach to finance more tailored to your business.

Here are three of these solutions, all of which we offer at Financefair: 

Revenue-based finance

Revenue based finance is a funding method that offers an advance on funds tied up in your monthly recurring revenue. It takes your regular monthly earnings and turns them into a funding source that you can use to grow your business. It’s a good option for companies that don’t have physical assets but have recurring contracts or non-contracted revenue, like subscription-based or SaaS businesses.

The main advantage of revenue-based finance over a term loan is the flexibility. With a term loan, lowering your repayments can be difficult. This can be challenging if your business experiences a cash flow pinch. Likewise, if your business does better than expected, you might want to increase your funding to make the most of growth opportunities.

With revenue based finance, we base your funding amount on your future projections. We review your funding regularly, meaning your repayments can decrease or increase as appropriate. Unlike with a loan, where you have a set amount to repay with fixed payments, revenue based financing adjusts to the peaks and troughs of your company’s revenue.

Here’s how it works: 

• We review your projected income for the next 12 months.
• This allows us to offer you up to 20% of your Annual Recurring Revenue (ARR) or up to 70% of the next quarter’s revenue. 
• We can provide the funds monthly or quarterly and adapt them to fit your revenue growth.

Here are some scenarios where revenue based finance can work well:

• You don’t have blue-chip debtors, but your recurring revenue is stable.
• You’re scaling your company.
• You want to manage your working capital more effectively and stop operating month to month.
• You have some contracts ongoing, but you want access to extra cash to tender for new contracts.
• You’re considering raising equity in the future. Revenue based finance can also be used alongside VCs and other types of investors.

In Ireland, revenue based finance is only available from Financefair. To be eligible, your company needs:

• To be a limited company with at least two directors
• To have been trading for at least 2 years
• A minimum turnover of €1M+

For more details, read our article: Revenue based financing: What it is and how to get started. 

Invoice discounting

Invoice discounting, also known as invoice financing, allows businesses to access cash by using their existing customer invoices to fund new contracts. It’s a convenient way to unlock funding without committing long-term to a loan.

There are two types of invoice discounting: selective and full book.

Selective invoice financing lets you choose which invoices to finance. This means you can select your largest, most significant invoices without raising invoices with much smaller sums. Selective can be a good option for smaller companies with only a few larger contracts (and many smaller ones). We are the only provider of selective invoice finance in Ireland.

With full book invoice discounting, you finance all of your invoices, which is slightly cheaper but can be more operationally intensive. Full book works well for businesses with larger teams and the resources to manage it.

Depending on the provider, you may be able to choose between disclosed (also known as non-confidential) or undisclosed (also known as confidential) invoice discounting. With a disclosed facility, your customers know you’re using invoice discounting. Invoice factoring is a common type of disclosed invoice finance where the funding provider effectively takes over your credit control. 

With undisclosed invoice financing, your customers won’t know you’re using invoice discounting. You’ll be in charge of sending invoices and collecting payments as usual.

Here’s how invoice discounting works:

1. You create an invoice.
2. The provider gives you a pre-agreed advance, usually a percentage of the total invoice value (for example, up to 90%).
3. Your customer pays the invoice amount to an account managed by the provider. If the facility is undisclosed, your customer assumes they’re paying you, but if it’s disclosed, they’ll know they’re paying a third party.
4. The provider then sends you the invoice balance minus any fees.

In Ireland, there are several providers offering invoice discounting:

1. Financefair: Choose either selective or full book invoice discounting and get an advance of up to 90% of the invoice value. You can apply for and manage your facility online, and once it’s approved, we’ll deposit funds into your account within 24 hours. To estimate the cost of invoice discounting, try our calculator. Our eligibility criteria requires that you:  
   1. Are a limited company with at least two directors 
   2. Have a trading history of at least 2 years
   3. Have a minimum annual turnover of €1M+
   4. Maintain an average debtor book of at least €500,000
2. AIB: Full book invoice discounting that you can manage online, with an advance of up to 85% of the invoice value.⁵
3. Bank of Ireland: Full book invoice discounting, typically for invoices that have been outstanding for up to 90 days. Provides an advance of up to 85% of the invoice value.⁶
4. Close Brothers: Invoice factoring and full book invoice discounting, with an advance of up to 90% of the invoice value.⁷
5. Bibby: Invoice factoring and full book invoice discounting that you can manage online.⁸

These providers may offer disclosed and undisclosed options based on your company’s perceived risk. Banks usually offer disclosed facilities, but all of Financefair’s invoice financing is undisclosed.

For more information about invoice discounting, read our article: Invoice discounting: How to get started. 

Line of credit

A line of credit is a type of financing that works similarly to a digital overdraft. It allows you to quickly access working capital whenever you need it, while only paying for what you use. 

A line of credit gives your business lots of flexibility. For instance, you might need to place a large order of stock to fulfil a new contract or to make the most of a bulk-order discount. Line of credit can help you make the most of these opportunities. 

Line of credit providers, like Financefair, can often offer businesses more funding than a traditional overdraft – up to €250,000 per 12-month period in our case. Additionally, these credit lines are more flexible than bank overdrafts. If you have a bank overdraft or loan, increasing your funding requires a new application, but with a line of credit, it’s easier to arrange a funding extension.

Once we’ve set your facility up, accessing the funds is simple. Unlike with invoice financing, you don’t need to redirect customer payments to a separate account. When you need to access funds, we’ll deposit them into your bank account via a bank transfer.

A line of credit might be the right choice for your business if you:

• Need quick access to a flexible cashflow for a milestone or project.
• Prefer a flexible funding option without a long-term commitment. 
• Don’t want to divert incoming payments to another bank account.
• Need funding fast and don’t have time to wait for the decision on a small business loan application.

AIB is currently the only Irish bank offering line of credit facility to current account customers. Financefair is the only provider offering it as a standalone option. To qualify for our line of credit facility, you must: 

• Primarily operate as B2B.
• Have a debtor book – but your clients don’t need to be blue chip.
• Connect your financial software with our platform.
• Fit the other rating criteria we look at. This includes your business credit score, history and creditworthiness, and business performance.

Why choose Financefair?

Established in 2015 by industry professionals, Financefair is an alternative lending platform that provides customised working capital solutions to Irish businesses. Previously known as InvoiceFair, our focus is offering businesses the funding they need to grow.

To do this, we offer business line of credit facilities, selective invoice finance, full book and selective invoice discounting, and revenue based financing. 

Here’s why you should consider working with Financefair to grow your business:

Get business funding plus the flexibility to switch solutions if you need to 

The financing we offer at Financefair offers more flexibility than a fixed-term loan: you’re not stuck waiting until your loan ends before you can apply for a higher (or lower) loan amount. Also, you can have a business finance solution with Financefair and a traditional loan from your business bank. 

When you reach out to us, we’ll assess your current funding needs and discuss where you see your business going in the long run. From there, we can determine which funding solution might be the best fit for you. 

Because we know how important flexibility is, we make switching to another funding solution easy if your needs change. As the only provider in Ireland that provides revenue based finance and a standalone line of credit, we can provide you with a wide range of options that other providers can’t – all on one easy-to-use platform. 

Here’s what else you should know about our financing products:

• The business owner doesn’t have to give a personal guarantee: Term loans usually always require some kind of personal guarantee. Financefair never requires a personal guarantee: so your home and other personal assets aren’t at risk. 

• Our pricing is transparent: No hidden fees will crop up later on. You’ll know from the outset exactly what the cost is. 

• You don’t need blue-chip debtors to get funding from Financefair: If your business has a subscription or recurring revenue model, securing funding from a bank can be difficult. 

Find out in one business day if we can fund your business.

One of the problems with term loans is how long it can take to find out if the bank has accepted your application. We know how important it is to be able to move fast if a business opportunity comes your way. For that reason, we ensure your indicative offer is with you in one business day. 

If you decide to accept our offer, you’ll need to complete some paperwork, and we’ll then set you up on the Financefair platform. When that’s all sorted, you can access your funding within 24 hours. To ensure we can move quickly, we use a combination of data analytics and a knowledgeable team with decades of industry experience. 

Benefit from decades of financial services experience 

When your facility is up and running, we’ll still be on hand if you want to discuss your funding, particularly if things change and you think another solution may suit your business better. We’ll speak to you directly to make sure we have a good understanding of which funding solution might best suit which situation. 

For example, we’ve seen that e-commerce businesses wanting to scale can do so more effectively with revenue based finance. Because revenue based financing is a more flexible option, it allows businesses to get hold of the funds they need faster. This lets them move more quickly than they might be able to if they had a loan and needed to secure more funding. 

Scale your company with frictionless, flexible funding from Financefair

In this article, we’ve looked at the options for term loans in Ireland, along with some of the most popular banks and peer-to-peer providers. 

We’ve also pointed out the limitations of term loans: namely, the lack of flexibility and ability to adapt as your business grows.

At Financefair, we offer innovative, more flexible funding alternatives that can grow with your business: revenue based financing, line of credit, and invoice discounting. 

If one of those solutions sounds like it might work well for your company, get in touch with the team today to find out more. 

Sources

¹https://businessbanking.bankofireland.com/credit/business-loans/business-loan/
²https://aib.ie/business/loans-and-finance/loans-up-to-60k
https://aib.ie/business/loans-and-finance/loans-from-60001-300k
³https://www.ptsb.ie/business-banking/term-loans/
⁴https://www.linkedfinance.com/business-financing/
https://www.linkedfinance.com/borrower-faqs/
⁵https://aib.ie/business/loans-and-finance/finance/invoice-finance
⁶https://businessbanking.bankofireland.com/credit/finance/invoice-finance/how-does-it-work/
https://www.closeinvoice.co.uk/invoice-discounting
⁸https://www.bibbyfinancialservices.com/funding/invoice-finance-products
https://www.bibbyfinancialservices.com/funding/invoice-finance-products/invoice-discounting