Business funding options for Irish SMEs: How to access debt, equity and alternative finance

Irish SMEs rely on access to finance to support expansion, strengthen operations and pursue long-term growth. Whether a business is investing in new equipment, entering a fresh market or planning an acquisition, choosing the right type of funding is essential. This updated guide outlines the core financing routes available to SMEs and provides practical advice on preparing for the funding process.

Bitesize briefing

• Debt remains the most commonly used type of finance for SMEs, with options ranging from senior bank lending to more flexible alternative lenders.
• Equity investment can support growth plans where additional capital and strategic expertise are needed.
• The choice between debt and equity depends on risk appetite, access to funding markets, growth trajectory and the business’s ability to service repayments.
• A clear funding proposal and strong business plan underpinned by robust financial projections significantly improve the chances of raising finance.

Funding options

Debt finance

Debt continues to be the primary avenue through which SMEs raise capital. Senior lending from traditional banks is often the most cost-effective option, offering structured repayment terms and competitive pricing. However, availability can vary depending on the strength of the business, the security offered, and the lending appetite of the bank.

In recent years, SMEs have increasingly explored alternative lenders. These providers often assess businesses with a broader perspective and may offer greater flexibility around repayment structures. This can include interest-only periods or balloon repayments at the end of the loan term. Although the cost of borrowing is typically higher with non-bank lenders, they can accommodate businesses seeking faster decisions, repayment profiles that support growth, or greater leverage.

SMEs weighing up debt options should consider the level of security they can provide, their ability to meet ongoing repayments and the degree of flexibility they need during the loan period.

Equity finance

While debt has historically been the default choice for many businesses, equity finance can be a powerful tool, particularly for SMEs with clear expansion opportunities. Equity investors inject capital into growing businesses in exchange for a share of ownership. This not only brings funding but often also access to experience, networks and strategic guidance.

Equity investment tends to suit businesses who have a capital requirement to support growth potential. It can also reduce short-term pressure on cash flow because equity does not typically carry structured repayment obligations. However, it requires owners to accept a dilution of ownership and take on a partner with a defined investment horizon.

For the right business, equity can accelerate growth, fund acquisitions or support entry into new markets, especially where early profits may not be sufficient to service debt.

How to access funding

Securing finance can be challenging for SMEs due to the number of options and the varying requirements of lenders and investors. A well-prepared and well-evidenced proposal is critical.

Businesses should start by clearly defining the purpose of the funding and detailing how the capital will be deployed and the expected return. Robust projections that demonstrate repayment capacity or long-term value creation strengthen any application. Lenders and investors want to see realistic assumptions supported by reliable financial information.

A structured approach helps. This includes preparing a full business plan, maintaining up-to-date financial statements, and presenting a clear narrative around the company’s strategy. Understanding the requirements of different funders can shorten the process and improve outcomes, whether the goal is securing bank finance, approaching an alternative lender, or engaging with an equity partner.

Many SMEs find value in working with an experienced adviser who can help refine proposals, engage appropriate funders and negotiate terms that align with the business’s long-term goals.

How Crowe can help you

Crowe’s corporate finance team specialises in advising SMEs through every stage of the funding journey. We help businesses assess the right mix of debt and equity, prepare detailed financial projections and develop clear and credible proposals for lenders and investors. Our team supports negotiations and ensures a smooth process from application to drawdown.

Whether your objective is growth, refinancing, or strengthening your financial structure, Crowe can guide you in securing the funding solution that fits your business.