For many Irish SMEs, some of the biggest financial commitments arrive as one-off bills.
Your annual tax return bill might come due at the same time as insurance premiums, commercial property tax, equipment costs or other essential business expenses. Even when your business is performing well, paying several large bills at once can put unnecessary pressure on your cash flow.
That’s where BillPay business finance can help.
Rather than paying a large expense entirely from your available cash, BillPay allows eligible businesses to pay the cost upfront and spread repayments over a 12-month term.
What is BillPay?
BillPay is a simple business finance solution designed to help SMEs manage large, one-off payments.
Instead of using a significant portion of your working capital to cover a major bill in one go, you can use a BillPay loan to pay the expense upfront and then repay the loan over 12 months.
This can make it easier to plan your monthly outgoings and keep cash available for the day-to-day running of your business.
For example, a business facing a €24,000 annual expense could potentially spread the repayment across 12 months rather than having the full €24,000 leave its bank account at once, subject to approval and the applicable interest rate.
What can you use BillPay for?
Large business expenses can come in many forms. BillPay can be used to help fund a range of one-off costs, including:
- Annual tax bills
- Commercial property tax
- Insurance premiums
- Other significant business expenses
The aim is simple: give your business more flexibility over when and how you pay large costs.
Protect your working capital
Cash flow is one of the biggest challenges facing small and medium-sized businesses.
Even profitable businesses can experience periods where cash is tied up in stock, customer invoices, wages or other operating costs. Having to make a large one-off payment can reduce the cash available to deal with these everyday expenses.
Spreading a large payment over 12 months can help you maintain a more predictable cash flow position.
Instead of a substantial amount leaving your account on a single day, you can budget for regular monthly repayments.
Why does cash flow matter?
Having cash available gives your business greater flexibility.
It can help you:
- Cover everyday operating expenses
- Manage unexpected costs
- Purchase stock when you need it
- Pay suppliers on time
- Take advantage of new opportunities
- Maintain a healthy cash buffer
Of course, taking on finance is a financial commitment, so it’s important to make sure the repayments are affordable for your business before applying.
BillPay vs paying a large bill upfront
There isn't necessarily a right answer for every business. If you have sufficient cash reserves and paying a large expense won't affect your ability to operate comfortably, paying upfront may make sense.
However, if paying a large bill would significantly reduce your working capital, business finance could provide another option.
| Paying upfront | Using BillPay |
|---|---|
| Large amount leaves your account immediately | Cost is spread across 12 months |
| Can reduce available working capital | Helps keep more cash available |
| Simple and straightforward | Predictable monthly repayments |
| No borrowing cost | Interest applies to the finance |
The right choice depends on your business's cash position, expected income and ability to comfortably manage repayments.
How much can you borrow with BillPay?
BillPay loans start from €10,000, with the amount available to you depending on your business and financial circumstances.
You can work with a Linked Finance lending specialist to determine the level of finance that suits your needs.
Linked Finance provides unsecured SME lending, meaning you don't need to put up business assets or property as collateral. Personal guarantees are required.
Who can apply?
To qualify for a Linked Finance business loan, your business must generally:
- Have been trading for at least two years
- Have annual turnover of more than €100,000
You'll also need to provide financial information as part of the application, including:
- Six months of bank statements
- Two months of merchant statements
- 12 months of financial accounts
- Tax clearance certificate
Providing this information allows the lending team to assess your application and understand your business's financial position.
A simple application process
Applying for business finance doesn't have to be complicated.
With Linked Finance, the initial application takes as little as two minutes.
1. Complete your application
Fill out the online application with some basic information about your business and the finance you require.
2. Speak to a lending specialist
A lending specialist will contact you to discuss your business and financial requirements. You'll need to provide your relevant financial documents.
3. Receive a decision
Linked Finance aims to provide a decision in as little as 24 hours, subject to receiving the required information and completing the assessment.
4. Access your funds
If your application is approved, you can draw down your finance and use it to cover the expense.
Don't let one large bill disrupt your business plans
Large one-off expenses are part of running a business. The challenge is making sure they don't disrupt your wider plans.
Whether it's an annual tax bill, insurance premium or another significant business cost, spreading the expense over a 12-month term could help you manage your cash flow while keeping your business moving forward.
BillPay is designed to make managing large business expenses simple, straightforward and more predictable.
If you're considering finance for a large upcoming payment, speak to a Linked Finance lending specialist to discuss your options and apply for BillPay loan today.
