Applying For A Business Loan In Ireland

Posted by on 12th November 2022


Applying For A Business Loan In Ireland or  Business loans come in a wide variety, and the terms and interest rates will change depending on your credit score and the amount you’re applying to get.

When requesting a business loan in Ireland, there are several things to consider. These comprise your credit history, present financial status, required loan amount, and loan terms.

If you’re looking to get a business loan in Ireland, Linked Finance provides financing to support your company’s expansion, whether you want to increase the size of your space, buy new equipment, finish a renovation, or take care of any other difficulties that require funding. The platform has worked with a variety of various industries, including takeaways, restaurants, cafes, online shopping, fitness businesses and gyms, and garages, to mention a few, to assist owners in achieving their long-term company goals.

Are you improving or growing your company? Contact us immediately to discuss our Business Loans and receive the best funding solutions for your company.

Improving or growing your company? Contact us right away to talk about our Business finance options and receive the best funding solutions for your company.

Types of Business Loans

Small-business loans come in various forms, such as merchant cash advances, term loans, and business lines of credit. Choosing the best one for your company will depend on when and for what purpose you need the money. Some of the most typical types of company loans are listed below:

  1. Term Loan: A standard term loan at a fixed rate of interest and terms of 6 months to 5 years. The loan is repayable in monthly instalments by direct debit.

Examples you can use it for:

  • Working Capital including stocking 
  • Asset Finance (such as the purchase of new machinery, vehicles or technology)
  • Capital Expenditure  including premises purchases or refurbishment
  1. A Merchant Cash Advance which is a flexible loan repaid over a maximum of 12months up to €150,000. With an MCA, the facility is repaid daily using a fixed % percentage of your credit and debit card sales which matches the turnover through your machines.

Examples you can use it for:

  • Stocking 
  • improving working capital
  1. Billpay:  A Bill Pay loan at a fixed rate of interest* and a term of 12 months. The loan is repayable in monthly instalments by direct debit.

Examples you can use it for:

  • Annual tax bill
  • Insurance premiums
  1. Advances on merchant funds: You receive an upfront lump sum of cash that can be used to finance your business. Instead of making a single monthly payment from a bank account, as you would with a term loan, you make payments on a merchant cash advance by deducting a percentage of your daily credit and debit card sales or by making fixed daily or weekly withdrawals from your bank account.

The Application Process

For all applications we need these documents from your business:

  1. Company bank statements for the past six months. This can be provided to us via Open Banking and we can pull the necessary information without the need for you to send us copies of your bank statements.
  2. Your most recent set of ‘signed-off’ accounts
  3. Tax clearance information

Occasionally, we may request additional information, such as management accounts or proof of contracts, in order to support your loan application. If required, these will be requested, in a clear and timely manner. 

It is significantly simpler to qualify for a business loan at Linked Finance. Just three documents are required for us to assess your application. To apply with us for a business loan, we please need:

  • 6-Month Bank Statements
  • Tax Certificate
  • CRO Number

Rates and Terms of Business Loans in Ireland

If you’re in the market for a business loan, there are a few things to keep in mind. Controlling the rate and term in mind when looking for a business loan in Ireland is important. The interest rate on business loans can be variable, but it’s usually higher than on consumer loans. The average interest rate on a business loan on Linked Finance is between 6% to 16%. Terms of business loans range from from 6 months to five years, but the intermediate time is about three years.

Remember that borrowing money isn’t always easy. Still, by following these tips, you can ensure you get the best terms and rates on your business loan.

Things to Consider When Applying for a Business Loan in Ireland

Whether you’re trying to borrow money from a pillar bank or a alternative lender such as Linked  Finance, there are a few things to consider when applying for a business loan in Ireland. 

Have your financial documents ready: For a lender to review your loan application you will need to submit documentation in the form or bank statements and/ or transactions statements. Usually this involves sourcing and send via email PDF copies. A better and more secure way to share this information is to submit financial documents is to use Open baking.

Open Banking removes the need for PDF statements and gives you the option to securely share your current account information in read only format directly from your current account by using Plaid. Open Banking provides you with complete control over your data and allows Linked Finance to process your loan application quickly.

Purpose of loan is important: Depending on your loan purpose will determine how much you can apply for. At Linked Finance you can only apply business loans with the purpose of  Working Capital up to €300,000 to a mac of 3 years. If applying for a business loan with the purpose of asset finance or capital expenditure this can be granted up to 5 years up to €500,000.  Please note that this is all subject to a review by our credit team to determine whether repayments can be made with the term on offer. 

Conclusion

You must do a few things before asking for a business loan if you’re considering starting or growing your business in Ireland. Make sure you clearly understand the goals you have for your company before anything else. Next, calculate how much cash you believe it will require to launch and run your Business. 

Finally, learn more about the many loan options available to small businesses in Ireland and choose the one that best suits your needs. You can ensure that your application runs as easily as possible and that you get the best funding for your project by following these easy steps. To learn more our products and services, get in touch with us at linkedfinance.com

 

Keep your business moving forward

With fast and flexible financing from Linked Finance.

Business Loans but Different

A Better Way to Borrow for Your Business

Linked Finance connects great local businesses who need loans with thousands of individual lenders. This is about using technology to bring business lending back to basics; real people with savings lending to great local businesses at attractive interest rates. Businesses get the funds they need to grow, lenders make a fair return. Everybody wins!

If you need a loan to grow your business, talk to Linked Finance

  • You get a same-day credit decision.
  • You can borrow up to €500,000.
  • No early repayment penalties.
  • A friendly, no-hassle approach.
  • Promote your business.
  • Win new customers as part of the process.

 

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