My Business is Starting up

Applying for Finance

19March-275x275

Come talk to us

Before you start preparing any application for credit, your first step is to contact with your AIB Business Relationship manager or a member of your branch or business centre and advise them you are seeking credit. Your branch or business centre will record your details and outline the information they will require from you to support your application.

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Prepare a business plan

Prepare a business plan which will help you present your business and demonstrate the viability of your proposal.

 

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Financial information to support your credit application

Prepare relevant financial information and other documentation that you will need to support your application to the bank e.g. bank statements (if you are new to AIB), cashflow projections, history of business, tax statements, etc.

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Your meeting with AIB

Arrange a meeting with your AIB Business Relationship Manager to complete the formal credit application process and, where necessary, complete an SME Business Lending Application Form.

Other Finance options available

Please note that the provision of this product or service does not require licensing, authorization or registration with the Central bank of Ireland and, as a result, it is not covered by the Central Bank's requirements designed to protect consumers or by a statutory compensation scheme.

Most new businesses need some financial help to get started, grow and develop.

  • How much do you need?
  • What are you prepared to invest in the venture?
  • What other support is available?

Finance for business comes in three different forms - equity, grants and bank finance. Before approaching the bank, first investigate the other forms of finance - grants and financial supports - available to you.

For start-up businesses there is a rough rule of thumb for finance - the optimum finance mix for getting your business off the ground is one third equity, one third grant funding and one third bank finance. However,  it is becoming more common that instead of grant-aid, support agencies seek an equity stake in new businesses. 

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Other Options

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    Invest in yourself – Personal Equity

    Personal equity is the portion of your own money which you are putting into the business. Personal equity is a sign of your commitment to the business and will help reduce the level of finance needed and can assist in securing grant aid.

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    Apply for support – Grant Aid

    Start-up businesses can access business advice and grant aid for activities including feasibility studies, employment, research and development, training and marketing.

    National grant aiding authorities for Start-ups include:

    Enterprise Ireland  – supporting the development of businesses which normally employ greater than 10 people.

    City & County Enterprise Boards  - fostering early stage businesses employing less than 10 people in local and regional areas.

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    Third party investors – Seed Capital

    Seed Capital is when a third party investor exchanges funds for a percentage ownership of your business. We have committed €75 million in seed funding for early stage businesses through

    (1) the AIB Seed Capital Fund and

    (2) the AIB Start Up Accelerator Fund.

    Both funds are set up with the support of Enterprise Ireland and managed independently of the bank and Enterprise Ireland by a team of professional fund managers.

    More information about seed capital funds operating in Ireland is available from the Irish Venture Capital Association.

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    Business Angels

    Business angels are private investors who invest smaller amounts of finance in early stage companies. In Ireland, there is a national Business Angel Partnership network to bring together the private equity activities of Enterprise Ireland, InterTrade Ireland and the Irish Business and Innovation Centres by matching private investors with pre-screened investment opportunities in start-up, early stage and developing businesses. More information on business angels is available from The Halo Business Angel Partnership.

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    Social Finance

    Social finance is about the availability of loan finance at affordable interest rates to fund community based projects and micro-finance. AIB along with 11 other financial institutions contributed €25million to Social Finance Foundation Fund. Social Finance Foundation Fund supports micro-finance and very small business which cannot access mainstream financial sources because of unemployment or lack of tangible security.

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    Tax Relief Incentive Schemes

    Currently there are two tax relief incentive schemes:

    (1) the Seed Capital Scheme and

    (2) the Business Expansion Scheme

    The Seed Capital Scheme provides for a refund of tax already paid by an individual, when that individual sets up and takes employment in a new qualifying business. The Business Expansion Scheme provides tax relief for investment in certain corporate trades.

    For more information check Revenue.

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    Microfinance Ireland

    Where we decline a request for credit, we will advise you directly, giving you a clear reason for our decision and making every effort to work with you to find an alternative solution.

    If you own a micro-enterprise (turnover less than €2m, staff less than ten), you may be eligible for a Microfinance Loan.

    Microfinance Ireland has been funded by the Irish Government to provide loans to newly established and growing micro-enterprises across all industry sectors that do not meet the conventional risk criteria applied by banks. In the first instance, you should approach your bank for credit. In the event that credit is declined, you are eligible to apply to Microfinance Ireland for a loan.

    Microfinance Ireland works in partnership with the County & City Enterprise Boards who can assist with training and guidance in preparing your business plan. They will also conduct an initial evaluation of the quality of your business proposal for a loan application.

    Established in 2012, Microfinance Ireland is now open for business and accepting qualifying applications. The company offers loans to viable businesses that have been declined for credit by a bank and are seeking up to €25,000.

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    Crowdfunding

    Crowdfunding (also known as crowd financing, equity crowdfunding or crowd-sourced fundraising) is the collective effort of individuals who network and pool their money, to support efforts initiated by other businesses.

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    More Information

    More information on support packages available to Irish businesses is available from the Government's website - Business Access to State Information and Services and from the European Union support programmes for SMEs.

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