Microfinance Ireland briefs Mullingar Chamber on Access to Finance for SMEs

patMicrofinance Ireland briefs Mullingar Chamber on Access to Finance for SMEs

Microfinance Ireland briefed the board of Mullingar Chamber to brief them on the unique service they offer which allows micro-enterprises to access finance at a competitive rate.

Microfinance Ireland (MFI) was launched to provide loans from €2,000 up to €25,000 to enterprises with less than 10 employees and with a turnover of less than €2 million per annum.  The loan fund exists to provide support to businesses that have formally or informally been declined credit or sufficient credit by their bank.   The objective is to support the maintenance and creation of jobs in local communities throughout Ireland.  New start-ups and existing businesses set up as Sole Traders, Partnerships or Limited Companies are all eligible to apply.

Lorna Coleman, Business Development Manager, Microfinance Ireland said “We are delighted to have this opportunity to brief Mullingar Chamber on what we do and how we can help their members who may be having issues with access to finance. MFI offers one simple product for both working capital and capital expenditure and the same interest rate of 8.8% APR fixed is charged regardless of the purpose of the loan.  This fixed interest rate offers both good value and certainty for customers that their monthly repayments will not change.”

The majority of MFI’s loans are for working capital to fund wages, business overheads, marketing and purchase of stock.  Loans for these purposes are provided over 3 year terms. MFI’s interest rate is competitive by comparison with bank overdraft rates. There are no other fees or charges connected with a loan from MFI.  Loan repayments may be increased or repaid earlier with no other penalty charges.

Speaking in advance of the briefing Pat Whelan, Mullingar Chamber President said “Working capital is the number one issue for small businesses at the moment and we are happy to support any avenue that allows micro-enterprises to get this in an easy and cost effective manner. I look forward to hearing more about what Microfinance Ireland has to offer and how it can support our members.”

MFI is not competing with banks – co funding with banks is a common feature of MFI loans for businesses that have not been approved sufficient credit by their bank.  MFI also works with the banks to promote the loan funds by including reference to MFI on their bank decline letters.

Key Microfinance Ireland stats to date include:

  • Almost 500 jobs supported
  • €3.5m approved to 210 micro-enterprises
  • 50% approval rate
  • 60% start-up businesses / 40% existing businesses

Pictures from MicroFinance Ireland and Pat Whelan, President Mullingar Chamber of Commerce in The Annebrook House Hotel for the Chamber AGM

For further information contact lcoleman@microfinaceireland.ie.

To check out the Chambers Ireland InBusiness Q2 2014. Click Here.

Website: http://microfinanceireland.ie/

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