Compare Loans for business with lenders in Ireland
Are you running a business? A business needs a constant supply of cash, and sometimes this supply gets disrupted. There could be several factors for poor cash flow, such as sales decline and economic recession. If this is a temporary phase, you can consider small business loans to fund the gap. They are available from direct lenders, banks and credit unions.
It can be hard to choose the right business loan because interest rates and repayment schedules vary by provider. Further, it is not possible to get offers without submitting multiple applications. This increases the risk of credit history damage. Do not forget that your credit history plays a crucial role in determining affordable interest rates.
Your credit history should be perfect to qualify for lower interest rates. Experts suggest that you compare business loans before submitting a formal application so that you can choose a suitable deal. Here comes the role of a broker.
A reputed broker has a wide panel of lenders. They can pick a couple of lenders on your behalf based on your overall credit profile. You will have all the information to draw a comparison, based on which you can easily pick a lender for you.
Lenders providing business loans in Ireland
Here are the Irish lenders that provide business loans:
AIB
- You can borrow up to €60,000.
- Business loans from AIB are ideal for short-term business needs.
- They come with fixed interest rates and flexible repayment terms.
- Early repayment charges are not applicable.
- A change in your repayment schedule will require you to submit a new credit application.
- Choosing flexible repayments might impact the repayment amount and term.
- AIB also offers loans over €60,000 and a business sustainability loan.
PTSB
- PTSB offers term business loans whether you need money for expansion or to keep the business ticking over.
- The minimum amount you can borrow for your business from PTSB is €5,000.
- The repayment term could be short-term or long-term, depending on the loan amount. The maximum repayment period is up to 10 years.
- PTSB offers business loans at variable interest rates.
- You will be liable to pay fees of 1% of the total loan upfront.
Linked Finance
- Linked Finance provides flexible business loans from £10,000 to €500,000
- The repayment term of these loans varies between 6 months and 5 years.
- There are no restrictions on the usage of these loans. You can use them for a wide range of expenses such as working capital and equipment purchasing.
- Business loans from Linked Finance are unsecured and require a personal guarantee.
- No early repayment charges are applied.
- You will get the decision the same day.
Microfinance Ireland
- Microfinance Ireland supports businesses that struggle to secure business loans from traditional lenders.
- You can use funds for expansion or buying equipment. They are highly suitable if you are struggling with working capital.
- Microfinance Ireland is supported by the Irish government, so the interest rates they offer will be more competitive than those of other private lenders.
- You can borrow up to €50,000.
- The repayment term of business loans from Microfinance Ireland is up to 60 months.
365 Finance
- 365 Finance provides revenue-based financing (merchant cash advance), which means repayments are tailored to the ups and downs of your business.
- You can borrow between €10,000 and €250,000.
- You can receive the approval decision within 24 hours.
- You must have at least €10,000 per month in card sales and have been trading for six months to be eligible for a merchant cash advance from 365 Finance.
Capitalflow
- This lender specialises in providing asset-based financing rather than traditional business loans.
- From equipment to technology, the lender is known for financing everything.
- The lender offers flexible financing options which include hire purchase, leasing and refinancing.
- Finance rates differ from business to business.
What things should you consider while borrowing from a lender?
At the time of taking out business loans, you should consider the following factors:
Loan size and purpose
How much you want to borrow and why you want to borrow are two important factors when choosing a lender. For instance, if you need a large amount of money, Linked Finance will be a better option. However, if you are looking to finance a vehicle, Capitalflow can come in handy.
If you choose a broker, they will understand your business and then pick lenders who can easily fit your needs.
Approval speed
Approval speed is another factor. You should choose a lender who can make the decision within the same day you put in your loan application. In case you are refused, you have a chance to apply to another lender without unnecessary delays. This prevents your business from having its productivity hampered.
Banks usually take a long time to make the decision. Apply through a broker, as they can help you get the offer from lenders without further ado.
Repayment flexibility
You should also check whether your lender is willing to offer flexible repayment schedules. Ideally, this is not possible with traditional business loans. Revenue-based financing allows for flexible payments because payments are a fixed percentage of your card sales.
Applying with a broker can help you choose a repayment schedule that best suits your financial circumstances.
Cost transparency
Choose a lender that lets you know a clear APR. It is vital to know beforehand what APR they will charge. If you apply through a broker, they will let you know APRs from different lenders, so you can easily compare based on the total cost of the loan.
The bottom
If you need money to fund your business, you can apply for business loans from various lenders. Since every lender offers money at different terms and repayment schedules, you should carefully analyse your needs and suitability. A broker can help you choose the most possible deal without hassle.
FAQs
What interest rates do lenders typically charge in Ireland for a business loan?
Most Irish lenders may be able to offer a quote only after assessing your business condition. Every business is different, so business loan deals cannot be the same for two different businesses. They will offer tailored solutions.
What is the impact of a personal guarantee?
Most lenders offer unsecured business loans. They will require a personal guarantee, which means you will be personally liable to discharge the debt in case your business fails.
What documents will I need to apply for a business loan?
Most of the lenders will require you to submit the following documents:
- Bank statements
- Tax returns
- Proof of identity
- Registration details of your business
- Profit and loss accounts
Lenders will let you know what documents they will need when you submit your application.
