19 Mar 2019 | 09.00 am
Why Borrow From Microfinance Ireland?
Loan finance for startups and the small firm
19 Mar 2019 | 09.00 am
Demand for finance remains high among micro-enterprises, even in uncertain economic times. Microfinance Ireland is there to address the funding gap
Microfinance Ireland, the not-for-profit lender, was established by the government to offer an alternative source of funding by providing loans to small businesses that do not meet the standard lending criteria provided by banks and other commercial providers.
Microfinance Ireland continues to see a growing demand for loans year-on-year from small businesses that want to set up or grow their business, irrespective of what stage the economy is at. Microfinance Ireland addresses a market gap for micro-enterprises through all stages of the economic cycle from boom to bust and, in particular, through periods of great uncertainty in the market.
Loans from €2,000 to €25,000
Microfinance Ireland provide business loans from €2,000 to €25,000 to startups and to existing businesses for set-up costs, working capital or business expansion, with terms of between three and five years, with the aim of supporting the creation and retention of jobs.
As part of its loan packages, Microfinance Ireland also offers expert one-to-one mentoring to approved loan applicants through Local Enterprise Offices, increasing the chances of small businesses achieving commercial success, and helping to sustain jobs in the longer term.
Unsecured loan finance
As a not-for profit and award-winning lending organisation, Microfinance Ireland is unique in the SME market in offering unsecured loan finance at affordable pricing to small businesses which may be having difficulty in securing finance. The micro-enterprise sector, in particular startups, is a difficult sector for banks to lend to due to lack of experience, insufficient or no collateral and often coupled with legacy debt issues.
Last year saw application volumes rise by about 10%, with evidence from all sectors that even at a time of full employment there are still many people who not only have a strong entrepreneurial desire but actively make the choice to get into business for themselves.
Best finance provider award
In December 2018, Microfinance Ireland was very proud to receive a Chambers Ireland ‘In Business Recognition Award’ as Best Finance Provider to Micro-Businesses and Startups. As a small not-for-profit lending organisation, it was amazing to get such a strong acknowledgement of the work that is done in every town and county in Ireland, supporting businesses and creating jobs.
The businesses that MFI support can be very small businesses with between one and three employees. These firms are often the lifeblood of their communities, providing products, services and employment to their areas, and without them many local communities would fail.
MFI acts as a catalyst for ‘changing lives’ by supporting small businesses to start and succeed, enabling jobs to be created and helping people fulfil their business dreams.
• Go to www.microfinanceireland.ie for more information on how Microfinance Ireland can help your business start up, expand and succeed.
Photo: Brendan Whelan (left), Microfinance Ireland board member; Deirdre Parkinson, marketing manager; Garrett Stokes, CEO; and Cyril Forbes, chairman of Microfinance Ireland