microfinance ireland presentation for leo donegal 08.03.16
TRANSCRIPT
“How to Raise Finance for your Business’’
National Enterprise Week
8th March 2016
Microfinance Ireland
Sources of funding for micro- enterprises
Micro-enterprise Equity/ Investment
Banks
Microfinance Ireland- Loan Finance €2k - €25K
Local Enterprise
Office
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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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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
Who can apply
Loan details
Our lending policy
Some exclusions
Microfinance loan product
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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
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
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
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)
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 1
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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
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?
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