Micro Finance Application Business Plan
Micro finance was created by government in the context of many businesses were turned down by the banks in 2001. For small enterprises, loans or upto €25,000 can be raised by application to Microfinance.
Main document they seek is
- Professional Business Plan.
- Cash Flow statements for First 12 Months
- Cash Flow Statements for 2 later years.
- Projected Profit and Loss Account.
- Management Accounts- If business is already up and running
- Bank Statements
- Applications forms
- Debtors/Creditors Listing.
- Business is based in Ireland.
- Applicant has PPS number and have a tax clearance certificate.
- Business plan– a necessary piece for loan assessment.
- Bank refusal
- We assist business in preparing applications for Loan with Microfinance.
The current rate applicable to loans is 8.8% (APR). A lower interest rate of 7.8% (APR) is applied to successful loans which originate
from the LEOs due to the perceived better quality of those applications.
Probability of Success:
- 1,100 loan applications per annum,
- 50% MFI loan approval rate i.e 550 successful applications.
- Average loan €16,000 – btw €8 M- €9 M being granted per annum
- 20% bad debts.
- 58% of approvals were start-ups businesses < 18 months
- 42% of approvals were granted to existing enterprises.
Please don’t hesitate to contact us at 0851477625 should you have any questions or need any help.