Working capital finance in Ireland

Funding that covers your company's day-to-day running costs, such as wages, rent, stock and supplier bills, while it waits for customers to pay. It is meant for timing gaps, not long-term projects. It can be a short-term loan repaid monthly, a facility you draw on, or funding repaid as a share of sales, depending on how your company earns its income.

It depends on how your company gets paid. Companies selling to other businesses on credit often suit invoice finance; card-heavy businesses may suit revenue-based funding repaid from sales; a one-off gap often suits a short working capital loan with fixed repayments. Match the term to the gap, and compare options on the total amount repayable rather than the headline rate or fee.

An overdraft is a limit on your business current account, usually reviewed every year and repayable on demand. Working capital finance is often a separate loan with a fixed term and repayment schedule, or funding repaid from daily sales, and it frequently comes from a non-bank lender. A fixed term gives certainty; an overdraft gives flexibility but can be reduced or withdrawn at review.

Start with the gap: how much you pay out for wages, stock and bills before customers pay, at your busiest point. Our working capital calculator helps you estimate it. Lenders then size funding against turnover, how regular your income is and existing repayments, based on your bank statements. Sales-based funding is usually sized against monthly card or online takings.

Some providers say they can give a decision within 24 hours of a complete application, especially for sales-based funding where they read live card or bank data. Loans usually take longer because of document and identity checks. None of this is guaranteed, so apply before the gap becomes urgent: a rushed application usually costs more and has fewer options.

Yes, it can apply. Start-ups registered as limited companies in Ireland can apply. Most lenders look for some trading history, so options may be fewer for a new company. Some sales-based providers consider companies with a few months of steady card or online sales, while loan providers usually want 12 months or more. The Local Enterprise Office and Microfinance Ireland, which lends €2,000 to €50,000, are other places to look.

Yes, a general business loan can be used to pay corporation tax or VAT on time. Compare it with a Revenue phased payment arrangement first, because Revenue's published interest on a phased payment arrangement may cost less than a short-term loan with fees. Paying on time also avoids daily late-payment interest. Our tax and VAT funding page explains the comparison.

Loans charge interest, sometimes with an arrangement fee. Sales-based funding usually charges a flat fee agreed at the start, repaid through a share of your takings. A flat fee repaid over a few months can equal a high annual rate, so compare offers on the total amount repayable and the expected repayment period, not the headline fee.

No. Working capital finance bridges a temporary gap between paying out and getting paid. If the company is losing money month after month, borrowing more usually makes the position worse and may put a director's guarantee at risk. Speak to your accountant about the underlying problem; processes such as SCARP exist for viable small companies in difficulty.