Despite availability of the State-backed €2billion COVID-19 loan scheme, many businesses are not borrowing right now. Government supports such as – EWSS and CRSS – are keeping things afloat and businesses are averse to taking on further debt. This may change as businesses reopen. We recommend planning ahead, looking at short to medium-term cash flow and being proactive about any financial support your business may require.
If you haven’t done so already three of the best business loan schemes we recommend you look into are the Covid-19 Working Capital Loan Scheme, Future Growth Loan Scheme and Revenue Commissioners’ Tax Debt Warehousing Scheme.
If you are approaching banks for financial supports do so as early as you can as there may be delays due to high demand. We also recommend that you come prepared with a good overview of your financial position. A short terms cash flow model provides an overview of monies coming in and going out over the next quarter. A rolling model, can quickly determine if you are facing a short-or medium-term financial crisis and can demonstrate to the bank the extent of the crisis and the amount of financial support required.
We are here to help. If you have any questions on any of these schemes or need assistance with any aspect of financial planning, contact Jamie O’Hanlon and team on 0818 303 087 or email email@example.com
Read on for full details of all three schemes:
1. Covid-19 Working Capital Loan Scheme
This is a good option for those businesses with short- or medium-term requirements.
This scheme offers loans up to five and a half years. Loans are flexible to suit your business needs whether that’s future working capital requirements or you need to fund innovation, change or adaptation of the business to mitigate the impact of Covid-19. Repayment terms are flexible – interest only for a period of time or a short-term moratorium – as long as the loan is repaid in the 5 and half years time frame.
How To Apply
Covid-19 Working Capital Loans are available through AIB, Bank of Ireland and Ulster Bank. Before approaching a lender, businesses must first receive their eligibility letter from the Strategic Banking Corporation of Ireland (SBCI).
A part of the applications process, you must provide a business plan. The rationale behind providing a plan is to assist you in reviewing your business and to help you plan for Covid-19 and future business strategies. To get you started, SBCI provides a Business Plan template setting out suggested headings and content required.
Further information on the loan application process including detailed eligibility criteria, loan terms and the business plan template can be accessed here.
2. Future Growth Loan Scheme
This is a long-term loan (7-10 years) that can be used to support organic growth, or it can support an acquisition.
(April 2021) Close Brothers and KBC Bank are accepting loan applications for the Scheme from businesses meeting SBCI eligibility. Potential borrowers in the Agriculture sector should be aware that KBC’s product range is aimed at SME business customers only and that it does not offer funding in the Agriculture sector. AIB, Bank of Ireland, permanent tsb and Ulster Bank FGLS capacity has been fully subscribed and is no longer available.
Successful applicants can access loan amounts from €25,000 to a maximum of €3,000,000 per eligible applicant. Maximum loan interest rate of 4.5% for loans < €250,000 and 3.5% for loans >= €250,000 with optional interest-only repayments available in certain circumstances. Loan terms range from 7 to 10 years
Applicants for loan in excess of €250,000 must submit a business plan to the relevant financial provider. Again SBCI provides a template outlining the content required.
Further information on the Future Growth Loan Scheme application process including detailed eligibility criteria, loan terms and the business plan template may be accessed via SBCI’s website
3. Tax Debt Warehousing
The Debt Warehousing Scheme allows tax debts incurred by businesses during the period of restricted trading caused by Covid-19 to be ‘parked’ on an interest free basis for 12 months following the resumption of trading.
At the end of the 12-month interest free period, the warehoused debt may be paid in full without incurring an interest charge or paid through a phased payment arrangement at a significantly reduced interest rate of 3% per annum.
This compares to the standard rate of 10% per annum that would otherwise apply to such debts.
The key condition to avail of the scheme is that you must file your taxes on time . Further information available on Revenue’s site here
- Avoiding cash flow issues when your business re-opens, 31 March 2021, Jamie O’Hanlon in conversation with Fiona Alston, RTE Boost My Business
If you need any assistance with accessing capital, applying to business loan schemes or any aspect of financial planning, do get in touch with Jamie O’Hanlon and team at firstname.lastname@example.org or call us on 0818 303 087.
"A breath of fresh air. Your firm demonstrated enormous commercial understanding in turning around negotiations with a potential target vendor. I admire your style and ability to drive the deal forward. Many thanks."
"I would like to say I'm very happy with your service, especially the audit team, your staff are always friendly, helpful and a pleasure to deal with."
"Your business approach to clients is very impressive. I have always found that when explaining the types of service on offer, it is always concise and straight forward. The level of trust that clients place in your company and its staff speaks volumes."
"I would like to take this opportunity to say how much we are impressed with your company's professionalism, it has been a pleasure working with you all and we look forward to working with you in the future."
"Avid Partners - Accountants & Business Advisors are an excellent firm of accountants, their quality ethos is outstanding."
"I have dealt with Jamie O' Hanlon, of Avid Partners - Accountants & Business Advisors Chartered Certified Accountants, for a number of years as he is auditor to one of my clients. I have always found him to be professional and responsive in his approach."
"Service is second to none; there is always someone at the end of the phone for any business advice. The staff are very easy to get along with, very approachable and know exactly what they are talking about"
We at Fitzies Bar have worked with Avid Partners - Business & Financial Advisers for over five years. We find that the advice and support offered to us in addition to all of our book-keeping requirements to include payroll, VAT, etc. is invaluable and has helped to contribute to our continued growth especially in these challenging times. I would have no hesitation in recommending Avid Partners.
Jamie and his staff are a pleasure to work with. They respond promptly to any queries we have and are critical to our financial planning and the future needs of our business. I would highly recommend them to anyone interested in accounting services.
We at Stillorgan Cycles have used Jamie and his Team at Avid Partners – Accountants and Business Advisers for over five years. We have found that the retail advice and support offered to us is second to none and has helped to contribute to our continued growth especially in these challenging times. I would have no hesitation in recommending Avid Partners.
I met Avid Partners through a local business networking group. We had been using the same accountants for years and found that in these harsh economic times that we were not getting good enough value or service. We were very impressed by the company's professionalism and enthusiasm and genuine interest in helping us get the most out of our business. As a result we are now clients of Avid Partners and are thrilled with our decision.
After meeting Avid Partners with a view to changing our accountants, we came away with a better deal financially and a feeling that we were in capable hands. We feel that Avid Partners has a personal interest in the welfare of our business. Avid Partners have given us great advice, help and support and respond to our day to day queries with speed and efficiency. We feel it was a great move for us to change to Avid Partners.