Crowe has been actively working with SME clients on funding solutions to meet short-term liquidity requirements. The process is not without its challenges, but we have had positive outcomes. A starting point is to make a realistic assessment of the funding needs of the business and the ability to support future repayments. With this information, we can quickly assess the most suitable funding options for the business and help navigate the credit process.
SBCI Working Capital Loan Scheme
We recently secured funding of €100k for a business in the wholesale / on-line retail sector. The business was experiencing working capital difficulties due to a short-term collapse in wholesale sales. While it expected revenues to pick up within the next six months as restrictions ease, this is dependant on meeting existing supply terms and replenishing stock. The most suitable funding product in this case was the SBCI Working Capital Loan Scheme as it provided immediate liquidity to support a short-term funding requirement.
SBCI Credit Guarantee Scheme
For another client we were able to secure €500k under the SBCI-backed Credit Guarantee Scheme. The business was operating in the manufacturing and design sector. Funding was needed for short-term working capital needs and to support future product development. The key selling point of the Credit Guarantee Scheme in this instance was the ability to term out repayments over a six-year period. This is in contrast to the three-year repayment period under the Working Capital Loan Scheme. This afforded the business with the cash flow capacity to invest in its product and support a positive growth trajectory in the medium term.
SBCI Future Growth Loan Scheme
We have found the SBCI-backed Future Growth Loan Scheme to be useful for businesses who are seeking capital to expand and grow their operations. Loans under this scheme have an 8-10 year repayment horizon and provide funding on an unsecured basis up to €500k. We note that there is limited lending capacity with the banks for this scheme at present. The funding line is expected to be replenished in the coming months.