This document provides information about obtaining microfinance loans from Microfinance Ireland for small businesses. It summarizes Microfinance Ireland's loan offerings, eligibility requirements, and application process. Specifically, it notes that Microfinance Ireland provides loans between €2,000 to €25,000, at a fixed interest rate of 8.8% APR, for both new and existing businesses with under 10 employees and annual turnover under €2 million. The application process involves working with your local enterprise office, who can help prepare the application, and Microfinance Ireland aims to make a credit decision within 10 days of receiving a completed application.

1. “How to Raise Finance for your Business’’
National Enterprise Week
8th March 2016
Microfinance Ireland

2. Sources of funding for micro- enterprises
Micro-enterprise
Equity/
Investment
Banks
Microfinance Ireland
- Loan Finance €2k - €25K
Local
Enterprise
Office
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3. Our story so far ……………….
1,639 applications
770 loans approved
58% of approvals granted to Start-Ups
€11.7M funding provided
1,821 jobs created/sustained
Wide geographic coverage: 21% of loans granted in Dublin and
79% in the rest of the country
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4. What our customers say…….
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Customer survey completed annually:
 Over 90% of customers are satisfied with the loan offering
 85% would apply for further funding to Microfinance Ireland (only
eligible customers surveyed)
 96% would recommend Microfinance Ireland to a friend, family
member or other individual
Source: Microfinance Ireland Customer Survey December 2015

5. Loan
details
Our
lending
policy
Some
exclusions
Microfinance loan product
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6. Who can apply
• Both new and existing businesses
with <10 staff and an annual turnover
of less than €2M
•Sole Traders, Partnerships and limited
companies from any sector
•Commercially viable business

7. Loan details
• Loans from €2,000 to €25,000
• Terms up to 5 years (3 years working capital /5
years capex)
• Fixed Interest Rate – 8.8% APR (1% discounted
APR if submitted via LEO’s)
• Unsecured lending

8. Our lending policy
• Create /maintain a job
• Full disclosure of credit history and evidence that
other debt is being managed
• Loan product is not intended to compete with the
Banks

9. Some exclusions
• No restructuring of loans from other lenders,
Lending for R&D, Bridging Loans
• Certain sectors – e.g. Gambling, Arms, Alcoholic
Beverage production, Tobacco, Human cloning etc
• Some restrictions on primary agriculture (max €15K)

10. Prepare Application
Submit / LEO
Assessment
Documentation issued
Fund Lodged / Repayments by Direct Debit
The Local Enterprise Office plays a key role in
supporting a customer’s application for Microfinance
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How your Local Enterprise Office can help
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Microfinance Ireland aims to provide credit
decision within 10 days of receipt of
application and supporting documentation
More information on www.microfinance.ie/how-to-apply

11. Microfinance Ireland assess a loan application based on the following:
 Quality of the application submitted
 Viability of the business proposal
 Realistic business plan including cash flow projections and market research
 Promoter - Skills, experience, character and commitment to the business
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How an application is assessed?

12.  Get someone to ‘sense check’ your application prior to submission
 Know your market – remember that ~ 50% of businesses fail in the first 3 years!
 Think about your cashflow and your cash cycle – a seasonal business will not
create monthly cashflow
 If you are a Start-Up, take a realistic approach to sales and/or growth in Year 1.
Demonstrate how you will generate sales as part of your business plan
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Some tips when completing an application

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Application forms and further information is available on:
www.microfinanceireland.ie
OR
www.localenterprise.ie
Further information
Loans from Microfinance Ireland benefits from a guarantee
funded by the European Union under the Employment & Social
Innovation (EaSI) programme