Short-term business loans in Ireland

A loan your company repays within 12 months, often in weekly or monthly instalments. It suits a defined, temporary need with a clear source of repayment, such as a large order that pays in 60 days, a bulk stock buy at a discount or an urgent repair. It is not designed for long-term projects, which is usually cheaper to spread over a longer term.

Short-term lenders often size the loan against your monthly income, so the repayments fit within the term. They look at three to six months of bank statements, regular takings and existing commitments. If the amount you need would take more than a year to repay comfortably, a longer loan or a different product is usually a better fit.

Pick the shortest term your company can comfortably repay from expected income. A 6 month business loan costs less in total but has higher instalments; a 12 month business loan spreads the cost and eases cash flow but usually costs more overall. If repaying within a year would strain the business, a longer loan or a different product is likely to suit better.

Usually, when measured as an annual rate, because lenders charge more for speed and short commitments. The total cost can still be lower than a longer loan, because you pay for fewer months. Short-term lenders may quote interest, a fixed fee or both, so compare the total amount repayable and the repayment schedule rather than the headline figure.

Some lenders say they can decide within 24 hours of a complete application, but this is not guaranteed, and same-day funding is rare. The money arrives only after the agreement is signed and identity checks are complete. Bank loans and larger amounts usually take longer. Having recent bank statements, director ID and details of existing borrowing ready makes the biggest difference to timing.

Many do, even for small amounts and short terms. The guarantee usually lasts until the loan is repaid in full, so a missed final payment can still lead to a demand on the director. Ask the lender whether the guarantee is capped and what it covers, and get independent legal advice before signing.

Some lenders will top up or renew a loan, but repeated short-term borrowing can strain cash flow and become expensive, because fees are charged each time. If your company keeps needing short-term funds, it may need longer-term finance, or a closer look at its cash cycle with your accountant.

Contact the lender straight away. Short-term loans have tight schedules, so a missed payment can quickly trigger default fees, extra interest and recovery action. Lenders that report to the Central Credit Register will record arrears, and a lender holding a director's guarantee can call on it. Regulated lenders must follow set procedures for SMEs in arrears.

Sometimes. Many short-term lenders want 6 to 12 months of trading with steady income through a business bank account, and some will look at 6 to 9 months if takings are regular. Start-ups registered as limited companies in Ireland can also apply through Welcome Finance, although options may be fewer. The Local Enterprise Office and Microfinance Ireland are other places to look.