Starting a New Business Part 6 - Financial Equity, Grants and Loans

Financial support is a key requirement when starting up a new business and there are a number of schemes available to assist new and developing businesses in Ireland. 

Grants

The following list gives details of some bodies that may provide grants or other financial assistance, it is not the only options:

• County Enterprise Boards    County enterprise boards develop economic and entrepreneurial activity at city and county level.  They offer a variety of financial support package to assist the start-up, development and expansions of small businesses in the manufacturing and services sectors employing ten or less people.        
• Enterprise Ireland   Enterprise Ireland is the government agency responsible for the development and promotion of the business sector.  They can provide financial support towards the cost of establishing, growing your business.  The funding is typically a mix of equity and grant aid and is targeted at manufacturing or internationally trading services of companies intending to employ 10 to 249 employees.
• Seed Capital Scheme  An employee who leaves employment and invests by means of shares in a company, which carries on a new business, may claim a refund of income tax paid in previous years. An unemployed person may also avail of this facility.

Investors
There are many potential investors out there if you go looking family members, friends, companies who may offer investment.  The Irish Investment Network  is a service that matches entrepreneurs with angel investors. They do charge a fee to match your proposal with potential investors but this only gives you the contact you still need to do the work selling your idea to the investor.


Other Business Loans
There are companies out there that will also offer business loans albeit at a higher rate of interest than the banks an example of this would be First Step Micro Finance.  There is also an option to agree loans with family or friends.



Bank Business Loans
Take time to look around at the major bank lenders and to those promoting small business packages, I looked at AIB, Bank of Ireland and NIB.  Have your business plan ready, especially finance sections we covered in part 4,  to go through with them

• Some offer 2 years transaction free banking
• Some offer 2 years internet business banking
• Some offer discount vouchers to business tools
• European Investment bank loans 2.66%
• Standard business loans vary 3.85% to 4.15%
• Business overdraft facility average 8%