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  • Small Business Finance - Information and guidance on how to finance your business.
    provide financing options that enable businesses to spread major payments over a longer period Business Overdraft This is the main form of financing for day to day expenditure or working capital requirements and is linked to the business s bank current account An overdraft allows you to spend more money than is actually in your account The amount by which your account can be overdrawn is agreed in advance and interest will be charged on the overdrawn amount The bank may also charge a set up or renewal fee for the overdraft facility Business Credit Cards Credit cards enable businesses to pay for and track expenditure and avail of short term credit The outstanding balance on the account is usually cleared each month If the account is not cleared interest on the remaining balance may be charged Invoice Discounting Businesses often have significant sums tied up in debtors money due from customers for goods or services provided and for which the business has issued an invoice for payment Invoice discounting allows a business to get cash from its sales invoices earlier than it would otherwise be able to It works by giving you access to a pre determined percentage of invoiced debt A bank may agree to immediately advance up to 80 of the value of approved outstanding invoices One of the main benefits of invoice discounting is that the amount of credit used increases or decreases in line with the value of outstanding invoices Factoring Businesses with unsatisfactory or inadequate internal credit management and administration systems may choose to sell off a portion of their debtors at a discount to a financial institution or company in return for a one off payment The factoring company plays a more direct role in collecting outstanding debts than with invoice discounting Overview

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/credit-options (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    other supports to businesses Government Supports Overview A number of government bodies and agencies provide funding and other supports to businesses particularly small businesses A network of 31 Local Enterprise Offices around the country provide advice information and support for starting up or growing a business For more details visit the Local Enterprise Office website here The Government has developed an online tool to help businesses find supports that meet

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/government-supports (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    the money it gets in is greater than the money it pays out Managing Your Cash A business can only survive in the long run if the money it gets in is greater than the money it pays out Businesses need to make profits to stay in business but many businesses can cope with short periods during which their expenses are greater than their income No business can survive without

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/day-to-day-own-funds (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    the business directly nor does it make the decision on whether a business should get a loan The funding is provided indirectly through partnered commercial banks and financial institutions These lenders decide whether or not to provide the loan to a business and set the conditions of financing interest rate loan period etc although the loan periods will typically range between five and 12 years To be eligible for the type of loan a business be an SME that is it should normally have fewer than 250 employees and the funds must be used to support new productive investments The benefit of EIB loans is that it can be cheaper for lenders to borrow funds to lend to small businesses loans from the EIB than from another source Participating banks pass on this cost advantage a given amount in basis points to eligible SMEs as agreed with the EIB which means that small businesses directly benefit from the lender s lower costs of borrowing This financial advantage is clearly communicated to the final beneficiary in the loan documentation How do I apply Small businesses interested in applying for an EIB loan should contact one of the EIB s intermediary banks The EIB maintains a list of current intermediaries and their contact details on its website here The EIF provides two types of funding supports for small businesses equity investment through venture and growth capital or credit products primarily guarantees Like the EIB the EIF does not provide finance directly to small businesses but works through intermediaries European Investment Fund Venture Capital Facilities The EIF acts as a fund of funds supporting venture capital and private equity funds that invest in small businesses particularly high growth and innovative companies that are in their early stages of development Most of the EIF supported funds investing in Ireland concentrate on companies involved in information and communications technology ICT or life sciences The EIF equity portfolio in Irish small businesses was 98 million by the end of 2010 How do I apply The EIF does not provide funding directly so entrepreneurs looking for investors with EIF backing should contact one of the funds supported by the EIF These funds decide make investment decisions based on their own commercial criteria A full list of all venture capital and private equity funds that have been backed by the EIF is available on the EIF website here What is venture capital Venture capital is medium to long term finance provided by professional investment companies in return for an equity stake The companies typically invest in businesses which are not listed on a stock exchange with high growth potential at the early seed or start up or growth stage of development For more information on venture capital in Ireland visit the website of the Irish Venture Capital Association here Competitiveness and Innovation Framework Programme CIP EU Guarantees The EIF also provides credit insurance guarantees and credit enhancements to institutions providing small business loans These guarantees are known as

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/invest-grow (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    from January 2012 Please visit the Central Bank s website here to see the current and revised Codes For a listing of credit intermediaries including non bank providers of asset finance authorised by the National Consumer Agency NCA please visit the NCA s website here For more information on managing your credit and dealing with your bank as well as information on agri or social finance please click here The Government launched the Credit Guarantee Scheme and Microenterprise Loan Fund in 2012 to facilitate greater access to credit for SMEs For more information please click here Medium term Finance Term Loan A term loan is usually associated with the purchase of a major asset such as a motor vehicle or plant and machinery or with business expansion although businesses can also use term loans for a range of other purposes Leasing Finance Lease For businesses that cannot afford to buy a business asset such as a motor vehicle or machinery leasing may be an attractive option This enables the business the lessee to lease or rent the asset from a financial institution the lessor in return for regular payments over a fixed period of time The lessor retains ownership of the leased asset Leasing Contract Hire Operating Lease This is similar to a finance lease agreement except that the lessor is usually responsible for maintenance and servicing of the leased asset Hire Purchase The business makes regular payments to a lender in return for use of the asset as with leasing When all repayments have been made you then become the owner of the asset Ownership of the asset only transfers to you when the last payment has been made but you will have full use of the asset from the beginning of the agreement Long term Finance Fixed Asset

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/invest-grow-credit-options (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    business aims to set itself apart from the competition It could be an entrepreneur testing the potential for a new business proposition or an established company researching new markets or developing new products or services Innovation helps businesses to differentiate themselves from others in the market and to plot a course for future growth Some entrepreneurs and businesses choose to fund innovation or research and development from their own resources

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/innovate-grow (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    Employment and Investment Incentive EII and the Seed Capital Scheme SCS are tax incentive schemes designed to encourage investment in businesses The EII which replaced the Business Expansion Scheme BES in 2012 provides tax relief for investors in companies involved in certain corporate trades while the SCS provides for a refund of income tax already paid by an individual when that individual sets up and takes employment in a new qualifying business Both schemes qualify as State aid and are subject to certain restrictions The SCS is intended for those who are or were in PAYE type employment To be eligible the entrepreneur must enter into a full time employment contract for at least one year with the company as an employee or a director and he or she must acquire at least 15 of the issued share capital of the company The EII allows a qualifying individual who makes a qualifying investment up to a maximum 150 000 for any one year in a qualifying company to avail of income tax relief The investor can initially avail of income tax relief of 30 on the cost of the investment from their total income in the year of the investment If after a three year holding period the company has increased either its number of employees or its expenditure on research and development a further relief of 11 of the cost of the investment will be allowed taking the total relief to 41 The relief may be carried forward to future years if the investor cannot take the full deduction to which they are entitled in any one year The relief is currently scheduled to end in 2013 Both schemes apply only to certain qualifying trading operations and some of these must be certified by relevant development agencies or government departments Full details relating to the investment the company and the qualifying activities of the company are available on Revenue s website here Business Angels Business angels are private individuals who invest relatively small amounts of money in new businesses in return for a share in a start up or early stage business and also contribute their expertise in business management and their personal network of contacts They may invest on an individual basis or as part of business angel syndicates Individual business angels typically invest between 20 000 and 250 000 according to the EBAN the European trade association for business angels seed funds and other early stage investors Two organisations in Ireland seek to match business angels with businesses needing investment the Halo Business Angel Partnership is a joint initiative between Enterprise Ireland InterTradeIreland and the Irish Business and Innovation Centres which is managed by Dublin Business Innovation Centre Limited the Halo Business Angel Network HBAN is joint initiative of Enterprise Ireland and InterTradeIreland which is aimed at developing angel investor syndicates across the island of Ireland Venture Capital Venture capital is private equity provided by professional investment firms Venture capital firms generally look for opportunities to invest

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/innovate-grow-equity (2016-02-16)
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  • Small Business Finance - Information and guidance on how to finance your business.
    please click here For more information on managing your credit and dealing with your bank please click here Credit Guarantee Scheme The Irish government has announced plans for a partial credit guarantee for small businesses in 2012 This scheme will initially provide guarantees on qualifying new credit to qualifying businesses for one year but the scheme could be extended for up to two further years The credit provided may be loans or invoice finance facilities although other lending products or facilities may be covered Each loan or invoice finance facility provided will be guaranteed for up to three years although the loan repayment term may be up to ten years The scheme aims to facilitate additional lending to small businesses who can demonstrate that they can service and repay the credit but lack security or collateral to support the application or whose business involves a novel business model market sector or technology It is up to the lender to decide whether or not the business is eligible for credit under the scheme and credit provided is subject to the lender s normal commercial terms and pricing The borrower must also pay the government an annual premium to the government based

    Original URL path: http://www.smallbusinessfinance.ie/grow-your-business/category/innovate-grow-credit-options (2016-02-16)
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