Microfinance Ireland

Transcription

1 Microfinance Ireland Allowing small businesses to start-up, expand and succeed SFA Business Bytes Preparing for Success 7 th February 2017

2 Funding Options for Small Businesses Credit Institutions Government Supports Competitions & Programmes Non-bank commercial lenders

3 Alternative sources of finance Grants & Funds Financial supports & assistance through a wide range of grant and fund programmes LEOs, Enterprise Ireland etc. Can help at feasibility, proof of concept and early trading stages..sometimes grants can be refundable! Crowd Funding Online lending platform (currently unregulated) that enables people with savings to connect and lend to businesses that wish to borrow Revenue A number of supports and initiatives including tax incentives - tax reliefs, deductions and exemptions as well as supports and other initiatives Business Angels Private individuals who invest capital in companies and in addition, contribute their know-how or experience in company management and can offer valuable expertise and guidance And then there is Microfinance Ireland

4 Purpose of MFI MFI s main objective is to support economic growth and job creation across Ireland by: lending on an unsecured basis and at affordable rates to both start-ups and existing businesses, that are "financially excluded operating a credit risk appetite that is unique in the marketplace Our target market: MFI supports applicants from all business sectors, with commercially viable proposals that do not meet the conventional risk criteria applied by commercial lending providers. Our primary target segments include: youth, unemployed, females, migrants and mature entrepreneurs Impact since inception 1,567 businesses supported 3,544 jobs supported 22.6m in loans approved 78% of loan recipients located outside Dublin 56% to Start Ups 30% to people in receipt of the Back to Work scheme 26% to Females 18% to non-irish passport holders

5 Small Business Loans from 2,000 to 25,000 What we offer For all loans: Fixed Interest rate of 6.8% APR (1% discount), if applying through your Local Enterprise Office, Local Development Company or referred by your bank Not priced for risk Lending is unsecured Term of 3-5 years No fees or charges Some exclusions: Some excluded sectors: Alcoholic Beverage production Gambling Tobacco Cannot fund R&D, Debt Restructuring or Bridging Finance Primary agriculture 15K loan threshold

6 4 Key Considerations for Microfinance Ireland 1. The Promoter 2. The Project / Business 3. Loan Purpose 4. Cashflow 5. Repayment Capacity

7 New & Existing businesses with less than 10 employees and an annual turnover of less than 2M All types of businesses are eligible: Sole Traders Partnerships Limited Companies Creating/sustaining a minimum of one job Who can Apply? What s Required? Forms & Templates are available on our website

8 How to Apply? Microfinance Ireland aims to provide a credit decision as quickly as possible following receipt of application and supporting documentation (10 days max) Credit Assessment Loan Offer 4 Funds Lodged Begin Repayments 5 Post-approval Mentoring 6 Submit through LEOs, LDCs or directly to MFI The Local Enterprise Office/Local Development Company plays a key role in supporting a customer in making an application for Microfinance Ireland funding More information on

9 Mentoring MFI Mentoring programme launched in May 2016 in conjunction with LEOs Mentoring sessions available for approved MFI loan applicants Start-Ups : Up to 3 sessions in Year 1 and 1 session in Years 2 & 3 Existing Business: Up to 3 sessions over the lifetime of the loan, where deemed necessary by MFI Mentoring is a critically important tool to help MFI customers establish and/or grow their business Recent survey demonstrates strong positive feedback so far 93% of respondents have made business improvements following mentoring 85% found mentoring beneficial /exceptionally beneficial for their business

10 To summarise MFI provide loans from 2,000 to 25,000 to small businesses who may be having difficulties in accessing credit from elsewhere Four loan packages tailored to your business stage and your funding requirements New & Existing businesses with less than 10 employees and an annual turnover of less than 2M are eligible to apply Submitting an application through one of our referral partners (LEO, LDC and Banks) means that you can avail of 1% off the standard fixed interest rate currently 7.8%APR Mentoring also available for approved loan applicants

11 Contact Details Deirdre Parkinson Marketing & Channels Manager Register your interest on us at: Call us on: Loans from Microfinance Ireland benefit from a guarantee funded by the European Union under the Employment & Social Innovation (EaSI) programme