Unsecured business loans in Ireland

A lump sum lent to your company without a charge over property, vehicles or equipment. Your company repays it in fixed instalments, usually monthly, over an agreed term. Because there is no asset behind the loan, the lender relies on trading history, bank statements, filed accounts and, usually, a director's guarantee. Rates tend to be higher than secured lending to reflect that risk.

Yes, if your company trades steadily and can show it can afford the repayments. Non-bank lenders and the banks offer unsecured loans to limited companies with no charge over property or equipment. In place of collateral, lenders rely on bank statements, filed accounts, tax compliance and, usually, a director's guarantee. Expect a higher rate than secured lending and an amount limited by turnover.

Lenders work from affordability: your turnover, profit and the repayments the company can carry, based on its bank statements. Some non-bank lenders lend up to €500,000 unsecured, but many cap the loan at a share of annual turnover and take existing debts into account. Borrowing more than the purpose needs raises the cost and the risk, so start with a clear figure and what it will be spent on.

Usually, with non-bank lenders. With no asset to fall back on, most ask one or more directors to guarantee the loan, and terms vary: some guarantees cover the full balance plus costs, others are capped. Government-backed SBCI loans up to €500,000 generally have no personal guarantee. Read any guarantee as carefully as the loan agreement and take independent legal advice before signing.

It depends on the lender. Many non-bank term lenders want around two years of trading and accounts filed with the CRO, while some will consider about 12 months if bank statements show steady income. Start-ups registered as limited companies in Ireland can apply through Welcome Finance, although options may be fewer. The Local Enterprise Office and Microfinance Ireland are other places to look.

Some lenders say they can make a credit decision within 24 hours of a complete application, with funds following once the agreement is signed and checks are done. This is not guaranteed. Most delays come from missing paperwork, so have your accounts, six months of business bank statements and director ID ready before you apply.

Often, yes. Some lenders let you settle early and save the remaining interest; others charge an early-repayment fee or calculate the settlement figure so that you save less than you might expect. Check the early-settlement terms in the loan agreement before you sign, and ask the lender for a written settlement figure before you repay.

Contact the lender as soon as you see a problem. Missed payments can lead to default interest, recovery action and, if a director signed a guarantee, a demand on that director, and lenders that report to the Central Credit Register will record the arrears. Regulated lenders must follow the Central Bank's SME Lending Regulations for borrowers in arrears. Your accountant can advise on options such as SCARP or examinership.

It can. The Central Credit Register does not give a credit score. Lenders that search the Central Credit Register leave a record of the enquiry on your company's report, and lenders must check the register for applications of €2,000 or more. Loans of €500 or more are reported, though not every non-bank lender reports to the register. Applying to many lenders at once leaves a trail of enquiries.

Often, if your company qualifies. A term loan charges interest on a reducing balance over a longer term, while a merchant cash advance usually charges a fixed fee repaid quickly from card sales, which can equal a high annual cost. Compare the total amount repayable and the expected repayment period, not the headline rate or fee.

It is a business loan arranged through an online lending platform rather than a bank branch. Your company borrows and repays as it would with any term loan, with fixed repayments, and the lender checks the company in the usual way. Linked Finance, one of our panel lenders, is an Irish platform of this kind.