As in many other countries in the world, the impact of coronavirus on Irish businesses and the economy has been significant.
Disruption to supply chains, falling demand among consumers and the shutdown of several industries, have threatened the short-term survival prospects for many businesses and a deep economic recession in the longer term.
But while business owners are rightly concerned, they will be doing all they can to balance the finances and safeguard their futures. Even when orders are reduced and customers are delaying payments, payroll obligations, supplier costs and other bills continue to mount.
That’s why it is more important than ever to unlock a reliable source of business funding.
Uncovering new sources of business funding in Ireland
For many businesses, taking on loans to overcome short-term financial challenges can compound the problems of increased debt burdens.
Businesses which were in good financial health at the start of the pandemic may now be finding that cash reserves are running low. And while Government-backed initiatives have provided financial support in the short term, having robust financial plans in place is necessary for future survival.
That’s why alternative business finance options are increasingly being considered by organisations of all shapes and sizes in Ireland. The Irish Asset and Invoice Finance Association (IAIFA) revealed that 1,600 SMEs used €28.6bn in invoice finance and other asset-based financing in 2019.
Alternatives to traditional bank loans - such as Invoice Finance - are a way for businesses to maintain reliable cash flow without storing up long-term debt for the future.
Find a financial provider which answers your needs
Accessing business funding in Ireland can fill many with apprehension. Financial service organisations are sometimes criticised for a lack of clear, jargon-free information about products and services.
And many traditional funders will demand evidence of an impeccable credit history before accepting any application. When funding is urgently needed to help stay afloat, it’s unsurprising that business owners can feel they’re at a disadvantage when requesting a loan from an unsympathetic bank manager.
But this should not stop you from demanding clear information and support tailored to your specific needs from a prospective funder. You shouldn’t settle for a business relationship that offers anything less than flexibility, speed and understanding.
Be prepared when applying for business finance
Before approaching a business funding provider, there are several ways to ensure you’re in a strong position:
- Be clear about what you need – how much funding do you require? Do you want a short-term solution or a longer-term financial partner to match your future growth ambitions?
- Explore your options – look beyond those funding sources that you’ve considered in the past. Using credit cards or applying for traditional bank loans might be right in some circumstances, but alternative business funding options are an increasingly viable choice
- Don’t just consider the bottom line – costs are important but just as valuable can be the expertise, industry knowledge and commitment to good client relationships which funders should demonstrate
- Don’t just take their word for it – review available customer case studies to gain an insight into the true value of partnering with a business funding provider
- Have the right information to hand – most funders require similar documents and information in order to process an application. This is to ensure decisions are based on accurate facts and figures. These will include financial records as well as proof of identification
Download your free Essential Funding Application Checklist
To help you with any funding application with financial providers, we have produced a clear checklist to ensure you have the right paperwork ready.
By following this checklist, you will be armed with the right information when it’s needed so you can avoid delays and get a fast decision on your funding request.