Frequently asked questions

We do not require Asset security for our loans. However, if you are applying for a business loan through a Limited Company (LTD Company) / Designated Activity Company (DAC) , we will request that you (Directors / Shareholders / Key Business Influencers) sign an Indemnity which is your commitment to take responsibility for repaying the loan if the business cannot do so. Microfinance Ireland is required to report all such Indemnifiers to the Central Credit Register (CCR).

The Max Exposure is €50,000, which you can have with Microfinance Ireland. We offer small business loans from €2,000 – €50,000 to start-ups and established businesses who are having difficulty getting a loan from other loan providers. You can register to apply here. 

The Max Exposure is €50,000, which you can have with Microfinance Ireland. If your previous loan was for less than the max exposure amount, you may reapply once your total loan amount from us doesn’t exceed the €50,000 limit.

At Microfinance Ireland, we do not compete with the banks. We provide small loans through the Government’s Microenterprise Loan Fund. The purpose of the fund is to help startups and established businesses get the financing they need for their business. As we are government-supported, we do have a high risk appetite! We want to help you, your business and support employment levels in the country. To find out more about what we do, click here. 

Microfinance Ireland can only lend to businesses having difficulty obtaining loans from the banks or other funding providers and we may seek evidence that you have not been able to get funding elsewhere.

When our loan assessor is reviewing your application, they will be able to determine if your loan application would be approved by a bank, or if you are indeed not bankable.

If you go to your bank and they do reject your application, you can get referred to us. Applicants that are referred to us by their bank receive a 1% discount on the loan interest rate.

If you are dissatisfied with the credit decision, you do have the right to appeal through Microfinance Ireland’s internal credit appeals procedure for loans over €5,000. You should submit your appeal in writing directly to us, setting out the basis for the appeal.

The Credit Assessor who was involved in the original decision will not be involved in the appeals decision. A written response will be sent to you within 15 business days of receipt of your written appeal.

Typically, if an application is declined, you will need some time to address the business issues or concerns that were raised during the credit application process. In general, we recommend that you wait for 6 months approximately. before reapplying or until the issues raised have been addressed or resolved.

We provide business loans up to €50,000 to both Start-ups and Established businesses that are having difficulty in getting access to funding.

Those that are setting up a business, have been in existence less than 18 months, and businesses that have been established over 18 months are all welcome to apply.

You can register to apply here. 

Microfinance Ireland will entertain an application to acquire/purchase an existing business.

The standard eligibility criteria are important insofar as the proposal is not a bankable deal, not operating in a restricted sector, etc.

To find out more about who we lend to, click here. 

Previous credit history does not prevent you from applying for a business loan with us.

If you can demonstrate that you are dealing with your current debt issues and that your business has the capacity to repay a new loan, we will consider your application.

Microfinance Ireland’s customers come from a diverse range of industry sectors and from all across Ireland. Our loans can be used for expansion, equipment purchase, working capital, etc and depending on the case, vehicles for the business.

Microfinance Ireland lends to small businesses based in the Republic of Ireland with fewer than 10 employees, and the annual turnover must be less than €2 million (micro-enterprises).

The loan you get from us must create or sustain 1 full-time position in the business, either for you or for somebody else.

Once you satisfy the above and your business is not listed on our Excluded Sectors list, we welcome you to apply.

Your local enterprise office can help you with filling out your forms, putting together your cashflows and business plans, and if you apply via your Local Enterprise Office, you will get a 1% discount on your loan interest rate.

Find your Local Enterprise Office here. 

Please see the list of requirements and eligibility criteria. Once you meet our criteria, you are more than welcome to apply for a small business loan with us.

Requirements

• Applicants must be over 18 years of age.
• The business must be located in and registered in the Republic of Ireland, and at least 1 full-time job must be created/sustained in the Republic of Ireland.
• The Applicant must also reside in their private residence on the island of Ireland (32 counties)
• The Applicant must have an Irish PPSN number, and for limited Companies, this includes Executive Directors/Shareholders with a Shareholding greater than 25% or any Natural Person whom MFI deem to be in control of this business.
• The business must find it difficult to get a loan from other financial providers.

You will need to be able to show that from the loan you obtain from Microfinance Ireland:

• You are supporting/ creating one full-time job
• You have fewer than 10 Full-time employees
• Turnover is less than €2 million
• You are not on our excluded sectors list

Your Local Enterprise Office, Local Development Company or other community-based Enterprise Centre may be able to assist you in preparing the documents required for your Application to Microfinance Ireland.

Alternatively, you can call us on 01 260 1007, and we will help point you in the right direction and get you the support you need.

If you are applying for a loan of less than €5,000, you need to fill out the application form and also send in 6 months’ bank statements, personal and business.

You should also send in your financial and management accounts for the previous year.

If you are applying for more than €5,000- up to €50,000, you will also need to send in a cashflow forecast.

If your company is an LTD company, you will also need to send in a personal CCR report for each director with more than 25% share.

Under the current rules of the Central Credit Register (CCR), MFI is legally obliged to conduct a credit search in the name of the borrower with CCR.

While MFI complete a credit search in the name of the limited company, we are precluded from undertaking a credit search in the personal names of Company Directors and/or Shareholders.

Therefore we request all Directors and Shareholders with a 25% or more shareholding in the company to obtain their own personal credit report from CCR and submit to MFI along with the limited company application.

At Microfinance Ireland, we can only count it as a referral if the customer give to us the proper referral letter, and then they can avail of the 1% discounted interest rate if approved for a business loan.

We can support start-up businesses at the very early stages of their journey. If you are a Sole Trader, you can apply before registering.

However if the company will be a Partnership or a Limited Company, it must be registered with the CRO before applying.

Yes, you can apply for a loan with us if you are starting a new business and in receipt of Social Welfare. You will need to show that you will be supporting or creating one full-time job as a result of this loan.

You will need to fill out your application and provide the relevant documents as required. If you don’t have a business bank accounts set up, your 6 months personal bank statements will suffice for now.

To be eligible to apply for a loan with us you need to show that you will be creating or sustaining at least one full-time position, and not be in employment elsewhere.

One full-time position is classed at 37.5 hours per week. Part-time employees can also be taken into account once the total hours per week equates to 37.5 hours, so for example 2 part-time staff working at least 18.75 hours each.

We must be provided with a formal decline letter/email from an Asset Finance Provider when the loan proposition is to fund the purchase of (i) any type of vehicle (new or second hand) and (ii) any commercial machine/machinery (new or second hand) which is suitable for asset finance type funding.

1. CONNECTED ENTERPRISES:

   MFI is obliged under the European Commission Ref. Ares (2016)956541 – 24/02/2016 “User Guide to the SME Definition” to consider what ownership links a Microenterprise business has with other businesses to calculate the aggregate Turnover/Head Count/ Total Assets (Fixed Assets + Current Assets) outlined in the Financial Statements to ensure each Applicant business complies with MFI’s Lending Criteria.

   There are 3 types of Microenterprises:

   • An Autonomous Enterprise.
   • A Partner Enterprise (ownerships of >25% and <50%)
   • A Linked Enterprise (ownerships of >50%).

    

   The Turnover/Head Count/Total Asset Values as per the Balance Sheet (variables) calculations are different for each type of microenterprise of which there are 3 types of Microenterprises:

   • An Autonomous Enterprise: The variables calculation is done on a standalone basis, that is, 100% of the variables of the Applicant Enterprise,
   • A Partner Enterprise: The variables calculation includes 100% of the Applicant business and a percentage of the variables of the Partner Enterprise based on the percentage ownership held,
   • A Linked Enterprise: The variables calculation includes 100% of the variables of the Applicant Business and 100% of the variables of each Linked Enterprise business (ownership stake held >50%). In case a relationship of this kind occurs through the ownership of one or more individuals (acting jointly), the enterprises involved are considered as linked if they operate on the same or adjacent markets (adjacent markets, or closely related neighbouring markets, are markets i.e. where products or services are complementary to each other or when they belong to a range of products that is generally purchased by the same set of customers for the same end use).