Microfinance Ireland (MFI), the government supported not-for-profit lender to small business, recently agreed a new €30 million funding line with SBCI. As this facility is priced at a lower rate than its previous bank lines, MFI has reduced its rates from 7.8% to 5.5% APR for all new loans.
MFI is permitted to lend up to €25,000 to businesses with fewer than 10 employees and turnover of up to €25,000 who are having difficulty securing finance from traditional lenders. MFI has loan products to serve both start-ups and expanding small business who need funding for capex or working capital.
A recent CRIF Vision Net report highlights that new business registrations were very strong in 2021 and this has also been reflected in strong demand for MFI’s loan products. MFI is expecting this strong loan demand to carry into 2022 and its new SBCI facility provides it with plenty of liquidity to service this expected increase in demand at more competitive rates.
Microfinance Ireland CEO Des McCarthy says, “We are a lender to small businesses who are finding it difficult to source funding. We know that our target customers are served by the many small accountancy practices throughout the country. While the first port of call when advising their clients on funding should be the conventional funders MFI offers an alternative if the traditional funders cannot fund all or a part of the clients funding needs. Our government support and not for profit ethos allows us to accept a much higher risk appetite than the commercial lenders. We are also willing to co-fund with the other lenders which means that MFI may be an option if the traditional lenders risk appetite leaves a funding gap.”
MFI loans are fixed rate with a three-to-five-year repayment period. While the fixed rate provides certainty as to borrowing cost, MFI permits borrowers the flexibility to prepay at any time without penalty should cashflows be better than expected. MFI loans are unsecured and MFI does not charge any fees.
Our application process is straightforward. Once an application is received, we expect to have a decision within 10 business days. Our process involves the usual checks and business and financial review. We always speak directly to the borrower to understand their business and their motivation ensuring that they get the chance to make the best case for their business.
“While MFI does not have a formal referral arrangement with any accounting firms, we would encourage Chartered Accountants to contact us should their clients fall within our criteria. We are serving a specific niche of higher risk businesses. We believe that by working together with accountancy practices throughout Ireland, we can ensure that vital funding is channeled to those higher risk businesses that need it most, thereby supporting local enterprise and jobs which is a win for all involved.”
For further information on MFI and our products please visit https://microfinanceireland.ie/loan-packages-july-21/
This article is sponsored by Microfinance Ireland.
LOADING...