microfinance ireland presentation for leo donegal 08.03.16

“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