If you’re trying to start a business or are looking to grow your business, it’s necessary to have funding. Many companies need to look into procuring business loans to make things happen. If you want to obtain a business loan in Ireland, there are a few things that you should know. Take a look at the information below so that you can have the easiest time possible to get the business loan you need.
Understand the Three Main Types of Financing
Before moving forward, you should understand the three main types of financing. There is debt, which refers to borrowing from an external source such as a bank. Equity involves having an investor put cash into the business in exchange for being given a stake in the business. Finally, cash can be inserted into the business by borrowing from family or procuring grants from government agencies.
Consider Visa Business Cards
Visa business cards are a good alternative to traditional business loans. They are a great cash management tool that allows business owners to make necessary purchases for their businesses. Businesses can make purchases without having to utilize the cashflow for 37 days, and the purchases are interest-free. All businesses in Ireland can benefit from making use of these cards for short-term needs and small purchases.
Term Loans Might Be Appropriate
Term loans are one of the most common types of business loans that companies elect to use. Most business loans in Ireland last from three to five years and businesses are expected to make monthly payments on the loan. These business loans make sense for large purchases and they give businesses a way to pay back the loan with very reasonable terms.
Asset Finance Is an Option
Asset finance is an option when you need something specific for your business. You can have the bank buy the asset and they will then lease that asset to you via a certain type of agreement. Typically, these asset finance lease agreements last for three to five years, and businesses will need to make monthly payments on the lease. At the end of the lease period, businesses can choose to extend the lease or buy the asset outright.