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Business finance glossary: Irish terms explained

Plain-language definitions of the business finance terms Irish limited companies meet, from what a factor rate is to what a balloon payment means. Search, pick a topic or jump to a letter.

A Revenue tax relief that lets a company write off the full cost of qualifying energy-efficient equipment against its taxable profits in the year it is bought, rather than over several years. Finance Act 2025 extended the scheme to 31 December 2030. Equipment must meet the published energy-efficiency criteria, so check eligibility with your accountant before relying on the relief.
The percentage of an invoice, asset or stock value that a lender will pay out upfront. In invoice finance, for example, a lender might advance a set percentage of each approved invoice and release the balance, less its fees, when the customer pays. The rate offered depends on the lender's view of your customers, sector and records.
The gradual repayment of a loan through regular instalments that cover both interest and part of the capital, so the balance falls to zero by the end of the term. Early instalments are weighted towards interest. Loans that are not fully amortised leave a lump sum, such as a balloon payment, due at the end.
A standardised measure of the total yearly cost of credit, including interest and certain charges. Its legal basis in Ireland is consumer-credit law, which requires lenders to show it to individuals. Lenders to limited companies are not always required to quote an APR, and many quote a flat rate, factor rate or fee instead, so compare the total amount repayable rather than looking for an APR.
A one-off fee for setting up a loan or facility, charged by the lender or a broker, either paid upfront or deducted from the funds advanced. It adds to the total cost, so include it when comparing offers.
An umbrella term for funding used to acquire vehicles, plant, machinery, equipment or technology, where the asset itself usually acts as security. The main forms are hire purchase and leasing. Because the lender can recover the asset if repayments stop, asset finance can be easier to arrange than unsecured borrowing, subject to status and lender approval.
The annual return every Irish company must file with the Companies Registration Office, usually with its financial statements, no later than 56 days after its annual return date (ARD). Late filing brings a fee of €100 plus €3 a day up to €1,200 and possible strike-off. Since 16 July 2025, under the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024, a small or micro company loses its audit exemption only for a second or later late filing within five years, not the first. Lenders routinely check filing history.
A larger final payment due at the end of a hire purchase or loan agreement, which reduces the regular monthly instalments. It is common in vehicle and equipment finance. You must plan to pay, refinance or settle the balloon when it falls due, and total interest paid is usually higher than on a fully amortised agreement.
The representative body for banking and payments in Ireland, with over 125 domestic and international member institutions. It represents the banking and payments sector in Ireland and at EU level.
A taxable non-cash benefit an employee or director receives from their employer, such as private use of a company car or van. The employer works out its value and collects the tax through payroll under PAYE, with PRSI and USC where they apply. Company vehicle BIK rules depend on the vehicle type and other factors, so check Revenue’s current guidance before choosing a vehicle.
Short-term funding used to cover a gap until another source of money arrives, such as a sale, refinancing or longer-term loan. It is usually more expensive than longer-term borrowing, and lenders want to see a clear and realistic exit route.
Tax relief that lets a company deduct the cost of plant and machinery used in its trade from its taxable profits over time instead of as a single expense. The standard wear and tear allowance is 12.5% of the cost a year over eight years. Some assets, such as qualifying energy-efficient equipment, can qualify for faster relief.
The number of days it takes a business to turn money spent on stock and costs back into cash from customers. It is calculated as stock days plus debtor days minus creditor days. A longer cycle means more cash is tied up in the business, which is why lenders look at it when assessing working capital or invoice finance needs.
Ireland's financial regulator and part of the Eurosystem. It authorises and supervises banks, credit unions and many other financial firms, sets consumer protection rules such as the Consumer Protection Code and SME Lending Regulations, and operates the Central Credit Register. Not every business lender is regulated by it.
A database operated by the Central Bank of Ireland holding information on loans of €500 or more. Lenders must check it when assessing applications of €2,000 or more. Loans stay on record for up to five years after they are repaid or settled. A company can request its own report free once a year, with a fee of €6.35 for further requests in the same year. Guarantees given on new loans since 1 February 2025 are reported, so a director who guarantees a company loan will see it on their personal report.
A vehicle, such as a van or truck, that Revenue does not treat as a passenger car for VAT purposes. A VAT-registered company can generally reclaim VAT on a commercial vehicle used for its taxable business, while VAT recovery on passenger cars is heavily restricted. Some vans with extra seating can be treated differently, so confirm the classification before you buy or finance.
The State body that registers Irish companies and business names and keeps their public filings, including constitutions, director details, annual returns, financial statements and registered charges. Lenders and brokers search the CRO to confirm a company exists, is up to date with its filings and to see what charges are already registered against its assets.
The State body that enforces competition and consumer protection law in Ireland. In credit, it authorises credit intermediaries that arrange consumer credit and oversees rules on the advertising of consumer credit.
An Irish law, in force for contracts entered into after 25 July 2016, that sets payment rules for construction contracts and gives a right to statutory adjudication of payment disputes. Payment is due no later than 30 days after the claim date. Contracts worth €10,000 or less and some small residential contracts are excluded.
The main Irish law protecting individuals who borrow or buy on credit, covering matters such as cost-of-credit information, cooling-off rights and the authorisation of credit intermediaries by the CCPC. It applies to consumers acting outside their business, so loans to limited companies generally fall outside it.
The tax Irish-resident companies pay on their profits. The rate is 12.5% on trading income and 25% on non-trading income such as most rental income. Large groups within the scope of the global minimum tax rules (Pillar Two) pay at least 15%.
A condition in a loan agreement that the borrowing company must keep to for the life of the facility. Covenants can be financial, such as maintaining a minimum DSCR or maximum debt level, or non-financial, such as supplying accounts on time or not selling key assets. Breaching a covenant can let the lender demand repayment or change the terms.
An independent statutory body, established on 1 July 2026 under the Credit Review Act 2026, that reviews bank lending decisions for SMEs and farmers, such as decisions by AIB, Bank of Ireland and PTSB on credit of €1,000 to €3 million that has been refused, reduced or withdrawn. You must apply within 30 days of receiving notice of the decision; the service can extend this by up to 10 days only in limited cases. The bank must say within 5 working days whether it will follow a recommendation. Non-bank lenders are not yet covered.
A business that introduces companies to lenders. Welcome Finance is a commercial finance broker: it is paid commission by lenders and charges your company no fee. Under the Consumer Credit Act 1995, a credit intermediary arranging credit for consumers needs authorisation from the CCPC. Arranging business-purpose finance only for companies does not require that authorisation.
The process of checking customers' creditworthiness, setting payment terms, sending invoices and chasing overdue payments. Good credit control reduces bad debts and debtor days. In factoring, the finance provider takes over much of this work.
A loan from a credit union to a business member, such as a company, for business purposes. Credit unions are regulated by the Central Bank, and the SME Lending Regulations have applied to their lending to micro and small enterprises since 1 January 2017. Each credit union sets its own lending policy, membership rules and limits, so ask your local credit union directly.
A legal document in which a company gives a lender security over its assets, usually through a combination of fixed and floating charges. A debenture can cover property, equipment, book debts, stock and future assets. It must be registered with the CRO within 21 days of creation. If the company defaults, the lender may appoint a receiver to recover what is owed.
Replacing several existing debts, such as short-term loans, an overdraft or supplier credit, with one new facility, ideally at a lower total cost or with a more manageable repayment. Consolidation can simplify cash flow, but a longer term can increase the total interest paid, and early repayment charges on existing loans must be included when comparing the options.
A measure of whether a company earns enough to meet its loan repayments. It is usually calculated as cash available for debt service, often based on EBITDA, divided by total annual interest and capital repayments. A ratio above 1.0 means repayments are covered. Lenders set their own minimum levels and may include a DSCR covenant in the agreement.
The average number of days it takes customers to pay, usually calculated as trade debtors divided by annual credit sales, multiplied by 365. High or rising debtor days tie up cash and are something lenders look at when assessing working capital needs.
A type of Irish private company under Part 16 of the Companies Act 2014 that keeps an objects clause in its constitution, limiting what it can do, and uses the suffix DAC. It must have at least two directors. Lenders will check that the borrowing and security fall within the DAC's stated objects before lending to it.
The interest-like charge in an invoice finance facility, calculated on the money advanced for the days it is outstanding. It is usually expressed as a margin over a base rate. The longer your customers take to pay, the more discount charge you pay.
The point at which the borrower actually receives funds under an approved facility. Some loans are drawn down in one amount; others, such as revolving credit or development facilities, allow several drawdowns up to an agreed limit. Lenders usually require all conditions precedent, such as signed security documents, to be satisfied before the first drawdown.
The checks a lender or buyer carries out before committing money, covering a company's accounts, tax position, contracts, legal structure and assets. Having documents organised in advance can shorten the process.
Earnings before interest, tax, depreciation and amortisation. It is a rough measure of a company's operating profit before financing costs and non-cash charges, and lenders often use it to judge how much debt a business can support. EBITDA is not the same as cash flow, so lenders usually look at it alongside bank statements and management accounts.
A fee some lenders charge if a loan or finance agreement is repaid before the end of its term, to compensate for interest they will no longer receive. Check how it is calculated before signing, especially if you may refinance or sell assets early.
The State agency responsible for supporting Irish-owned businesses that are, or plan to be, exporting and scaling internationally, as well as high-potential start-ups. It offers grants, mentoring and overseas market support to eligible client companies. Smaller, locally trading businesses are generally supported through the Local Enterprise Offices instead.
The Euro Interbank Offered Rate, a benchmark showing the average rate at which banks in the euro area lend to each other over set periods, such as three or six months. Some variable-rate business loans are priced at Euribor plus a margin, so repayments rise or fall as Euribor moves. Others use the lender's own variable rate instead.
The key interest rates set by the ECB for the euro area, including the main refinancing rate and deposit facility rate. Changes in ECB rates feed through to Euribor and to Irish lenders' variable rates. The ECB main refinancing rate also sets Irish statutory late payment interest: 2.40% plus 8 percentage points gave the 10.4% rate applying from 1 July 2026.
A court-supervised rescue process under Part 10 of the Companies Act 2014. The court can appoint an examiner where a company is, or is likely to be, unable to pay its debts and there is a reasonable prospect of it, or part of its business, surviving. The company is protected from creditors for 70 days, extendable to 100 days, while a scheme of arrangement is put together. Small companies can apply to the Circuit Court. Always take advice from a solicitor or insolvency practitioner.
A pricing method used mainly for merchant cash advances and some short-term finance, expressed as a multiplier such as 1.2 rather than an interest rate. You multiply the amount advanced by the factor rate to find the total repayable. Because the cost is fixed regardless of how quickly you repay, it should not be compared directly with an annual interest rate.
A form of invoice finance where a company sells its unpaid invoices to a finance provider in exchange for an upfront advance. The factor usually manages the sales ledger and collects payment from customers, who therefore know a third party is involved. The balance, less fees, is released when the customer pays. Factoring may be with or without recourse.Read about Invoice factoring
Under a finance lease the company uses an asset for most of its working life and takes on most of the risks and rewards of ownership, while the finance company keeps legal title. Under an operating lease the company uses the asset for part of its life and usually hands it back. Accounting and tax treatment differ, so ask your accountant.
The independent statutory body that deals with complaints against regulated financial service providers in Ireland, free of charge. Businesses and other entities with annual turnover of no more than €3 million can complain, usually after first using the provider's own complaints process.
Finance for fitting out commercial premises, such as a restaurant, shop, clinic or office: shopfronts, counters, kitchens, furniture, lighting and technology. It may be arranged as a loan, hire purchase or leasing. Because much of a fit-out is fixed to a building and has little resale value, lenders often treat it as higher risk than equipment and may ask for a guarantee or a deposit.Read about Fit-out finance
A fixed rate stays the same for an agreed period, so repayments are predictable. A variable rate can rise or fall, often in line with a benchmark such as Euribor or the lender's own rate. Fixed-rate loans may carry higher early repayment charges.
Security over a specific asset, such as property, a vehicle or named equipment, which the company cannot sell or dispose of without the lender's consent. A fixed charge ranks ahead of most other creditors if the company becomes insolvent. Like other company charges, it must be registered with the CRO within 21 days of creation to be effective.
A way of pricing a loan where interest is calculated on the original amount borrowed for the whole term, even though the balance falls as you repay. A flat rate therefore looks lower than an equivalent annual interest rate on the reducing balance. Compare the total amount repayable.
Security over a changing pool of assets, such as stock, book debts or cash, which the company can continue to trade with in the normal course of business. If a specified event such as default occurs, the charge crystallises and becomes fixed over the assets held at that time. It must be registered with the CRO within 21 days of creation.
The record left on a Central Credit Register report each time a lender accesses it, showing the date, the lender and the reason. Footprints are shown on the report for five years, but a lender searching sees only those from the last two years. A cluster of recent footprints can suggest a borrower is shopping around under pressure.
The EU General Data Protection Regulation and the Irish Data Protection Act 2018 set rules on how organisations collect, use and store personal data, including that of company directors and guarantors. The Data Protection Commission (DPC) enforces them in Ireland.
Money given to a business, usually by a State body such as a Local Enterprise Office, Enterprise Ireland or SEAI, that normally does not have to be repaid if its conditions are met. Grants often pay out after the spending has been made and verified, so companies may need to fund the cost first.
A loan used to fund projects with environmental benefits, such as energy-efficient equipment, solar panels, electric vehicles or building upgrades. Some lenders offer lower pricing for qualifying projects, and State schemes such as the GSLS include climate action purposes.Read about Green and energy-efficiency loans
A State-backed SBCI scheme offering loans of €25,000 to €3 million over seven to 10 years through participating lenders, for long-term growth, resilience or climate action projects. It cannot be used to refinance existing loans, and a loan's final maturity cannot fall after 30 June 2039. Loans up to €500,000 are unsecured, generally with no personal guarantee, subject to certain exceptions. On 12 October 2026 the scheme was increased to €1 billion; it runs until 30 June 2029 or until fully subscribed. Applicants first obtain an SBCI eligibility code, valid for six months.
A form of asset finance where the company pays for an asset in instalments, often after a deposit, and takes ownership once the final payment and any option-to-purchase fee are made. The finance company owns the asset until then and can repossess it if payments are missed. Tax treatment differs from leasing, so ask your accountant.Read about Hire purchase finance
The agreed percentage of each card sale, or of total revenue, that a merchant cash advance or revenue-based finance provider takes until the total repayable is cleared. A higher holdback repays the advance faster, which raises the annualised cost of a fixed fee, while a lower one leaves more cash in the business each day but ties you in for longer.
A confidential form of invoice finance where a company borrows against its unpaid invoices but keeps control of its own credit control and collections. Customers usually do not know a finance provider is involved. It generally suits established businesses with solid accounting systems. The facility grows with sales and is repaid as customers settle their invoices.Read about Invoice discounting
An umbrella term for funding secured on a company's unpaid invoices, so cash comes in before customers pay. The main forms are factoring, invoice discounting and selective invoice finance. The amount available rises and falls with sales, and the provider's view of your customers matters as much as your own accounts.Read about Invoice finance
A court order that a person or company pays a sum of money. In Ireland, the Central Office of the High Court maintains a register of money judgments from the High Court, Circuit Court and District Court. A creditor must apply to register a judgment, and the register can be searched for a fee, so lenders and credit-information services can usually find unpaid judgments.
Know Your Customer and Anti-Money Laundering checks that lenders and other designated firms must carry out under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. They verify the identity of the company, its directors and beneficial owners, and the source of funds. Expect to provide photo ID, proof of address, CRO details and RBO information before any finance can be drawn down.
Statutory interest a business can claim on overdue invoices from other businesses or public bodies under the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012). A contract term that excludes late payment interest is presumed to be grossly unfair. It equals the ECB main refinancing rate plus 8 percentage points, reset each January and July; from 1 July 2026 it is 10.4% a year, accruing daily. You can also claim fixed compensation of €40 for invoices up to €1,000, €70 up to €10,000 and €100 above that.
A form of asset finance where the company rents an asset, such as equipment or vehicles, for an agreed period while the finance company keeps ownership. Under a finance lease the business takes on most of the risks and rewards of ownership; under an operating lease it typically returns the asset at the end. Your accountant can explain the tax and accounting treatment.Read about Equipment leasing
A trade finance instrument in which a bank undertakes to pay a supplier, often overseas, once specified shipping and other documents are presented that match the agreed terms. It reduces risk for both buyer and seller in international trade. Letters of credit are issued under the bank's own credit approval and usually require a facility or security.
The formal process of closing a company, in which a liquidator sells its assets, pays creditors in a set order and dissolves it. It can be a members' voluntary liquidation for a solvent company, a creditors' voluntary liquidation for an insolvent one, or a court-ordered winding up. Directors may face scrutiny of their conduct.
The size of a loan expressed as a percentage of the value of the asset securing it. For example, borrowing €300,000 against a property valued at €400,000 gives an LTV of 75%. A lower LTV means less risk for the lender. Each lender sets its own maximum LTV depending on the asset type and the borrower's circumstances.
One of a network of 31 local offices, based in local authorities, that act as a first stop shop for small businesses and entrepreneurs in Ireland. LEOs provide advice, training and mentoring, and some eligible micro-enterprises can access grants such as feasibility, priming and business expansion grants. They also help businesses apply for Microfinance Ireland loans.
Internal financial reports, usually monthly or quarterly, showing a company's recent trading, balance sheet and cash position. They are not audited, but lenders often ask for up-to-date management accounts alongside the last filed financial statements.
A transaction in which a company's existing managers buy the business from its owners, often funded by a mix of their own money, borrowing, and vendor finance. Lenders look closely at the business's cash flow and the management team's track record.Read about Acquisition and MBO finance
Many variable-rate loans are priced as a base rate, such as Euribor or the lender's own reference rate, plus a margin set for the borrower. The margin reflects the lender's view of risk and usually stays fixed, while the base rate moves with the market.
A form of finance where a provider advances a lump sum in return for a fixed percentage of the company's future card takings until an agreed total is repaid. Repayments rise and fall with card sales. The cost is usually set by a factor rate, so compare the total amount repayable carefully with other options before agreeing.Read about Merchant cash advance
The category of business protected by the Central Bank’s SME Lending Regulations when dealing with regulated lenders. Based on Commission Recommendation 2003/361/EC, it covers enterprises employing fewer than 50 people with annual turnover, or a balance sheet total, of no more than €10 million. Connected enterprises’ figures may need to be included in some cases.
A not-for-profit lender, supported by the State, that provides unsecured business loans of €2,000 to €50,000 to micro-enterprises in Ireland with fewer than 10 employees and annual turnover under €2 million that cannot get credit from banks or other commercial lenders. Applying through a Local Enterprise Office, with a LEO mentor, brings a 1% reduction in the interest rate. Repayment terms are set in each loan offer, and loans are subject to Microfinance Ireland's own assessment.
A system, set up under EU payment services rules, that lets a business share its bank account data securely with authorised third parties, with its consent. Some lenders use it to view bank statements quickly during an application instead of asking for PDFs.
A small fee payable at the end of a hire purchase agreement to transfer ownership of the asset to the company. Until it is paid, the finance company remains the legal owner. It should be shown in the agreement from the start.
A facility that lets a company draw more than the balance in its current account, up to an agreed limit. Interest is charged only on the amount used, but overdrafts are usually repayable on demand and reviewed regularly by the bank.
The payroll taxes Irish employers deduct and pay to Revenue. PAYE is income tax, PRSI is a social contribution paid by both employee and employer, and USC is the Universal Social Charge. They are reported through payroll submissions and paid monthly or quarterly, so arrears quickly affect tax clearance.
A short-term facility that helps a company meet wages, PAYE, PRSI and USC when payroll falls due before customers pay. It is often linked to invoices or contracts, as in recruitment and contract staffing, where the funder may pay workers and recover the cost when the end client settles. It is a specialist product with its own eligibility rules, so compare it with invoice finance and a working capital loan.Read about Payroll finance
A legally binding promise by a director or other individual to repay a company's debt if the company cannot. It means personal assets, potentially including your home, can be pursued by the lender. Under the Central Bank's SME Lending Regulations, regulated lenders must explain the consequences and give warnings. Guarantees on new loans since 1 February 2025 appear on the guarantor's Central Credit Register record. Always take independent legal advice before signing one.
An agreement with Revenue to clear overdue tax in instalments rather than in one lump sum. Revenue charges interest on PPAs at 8% a year for corporation tax, income tax and CGT, and 10% a year for employer PAYE, VAT and RCT. Applications are made through ROS, and keeping to the arrangement helps protect your tax clearance status.
An advance payment of corporation tax made before the end of a company's accounting period. A small company, with a previous corporation tax liability of €200,000 or less, can pay 90% of the current liability or 100% of the previous one in one instalment in month 11. Budget 2027 proposes raising this to €350,000; check the final Finance Act. Larger companies pay in two instalments, in months six and 11. Planning for it is a common reason firms seek tax funding.
The HSE service that pays doctors, pharmacists, dentists and opticians for the free or reduced-cost healthcare they provide under State schemes. For pharmacies and GP practices, PCRS payments are often a large and regular part of income.
The most common type of Irish company under the Companies Act 2014, using the suffix LTD or Teoranta. It has no objects clause, can have a single director and can have up to 149 members. Its members' liability is limited, although directors who give personal guarantees can still be personally liable for guaranteed debts.
A company type under Part 17 of the Companies Act 2014. It needs at least two directors and must meet minimum capital rules before it starts business or borrows. A PLC cannot claim audit exemption.
Funding that pays a supplier so your company can fulfil a confirmed customer order it could not otherwise afford to buy in. The funder relies mainly on the strength of the order and the customer, and is repaid when the customer pays, often through invoice finance. It is a specialist product; for some purchases, trade or supplier-payment finance may do a similar job.Read about Purchase order finance
A corporation tax credit for companies carrying out qualifying research and development in Ireland. Finance Act 2025 increased the rate from 30% to 35% of qualifying expenditure and raised the first-instalment threshold from €75,000 to €87,500. Larger claims are paid in instalments, so companies sometimes need funding while they wait.
In invoice finance, recourse means the company remains liable if a customer fails to pay an invoice that has been funded, and must repay the advance or replace the invoice. Under a non-recourse facility the provider takes on the risk of an approved customer's insolvency, usually at a higher cost and only up to set limits. Read the definitions in the agreement carefully, as non-recourse terms rarely cover disputes.
The central Irish register of the individuals who ultimately own or control a company, typically anyone holding more than 25% of the voting rights, or controlling it by other means. New companies must file within five months of incorporation and update changes promptly. Lenders check RBO details as part of their anti-money laundering checks.
The legal requirement to register security, such as a mortgage, debenture or fixed or floating charge, created by an Irish company with the CRO within 21 days of its creation, normally using Form C1 or the two-stage C1a and C1b process. The CRO cannot extend this period; only the High Court can, under section 417 of the Companies Act 2014. An unregistered charge may not protect the lender, so lenders insist on timely registration.
A regulated lender is authorised by the Central Bank of Ireland, or passported from another EU state, for the activity it carries out, and must follow rules such as the SME Lending Regulations. Some lenders to companies are not regulated for that lending, so those protections may not apply. Always ask a lender about its regulatory status.
A withholding tax that applies when a principal contractor pays a subcontractor for work in construction, forestry or meat processing. The principal deducts tax at 0%, 20% or 35% depending on the subcontractor's Revenue compliance record. A poor RCT rate reduces cash flow and is a signal lenders may notice when reviewing tax compliance.
The estimated value of an asset at the end of a lease or finance agreement. A higher residual value can lower the regular payments because less of the asset's cost is financed through instalments. If the asset is worth less than expected at the end, the business may have to cover the shortfall, depending on the terms of the agreement.
A percentage of each payment held back by the client or main contractor until a project is complete or defects have been put right. Retentions tie up cash for subcontractors and are usually excluded when lenders calculate how much they will advance against construction invoices.
Revenue's online system for businesses and agents to register for taxes, file returns, make payments and manage their tax affairs, including corporation tax, VAT, PAYE and RCT. Companies also use ROS to apply for tax clearance and to request phased payment arrangements. Lenders may ask for ROS statements to confirm a company's tax position.
Funding repaid as an agreed share of a company's future revenue rather than through fixed monthly instalments, so repayments flex with sales. It is often used by online and subscription businesses with predictable recurring income. Pricing is usually a fixed fee or multiple of the amount advanced, so compare the total repayable with other options.Read about Revenue-based finance
A facility that lets a company draw, repay and redraw funds up to an agreed limit during the facility's term. Interest is charged on the amount drawn, and there may be a fee on the unused part. It suits fluctuating working capital needs.Read about Revolving credit facility
The asset a lessee records on its balance sheet for the right to use a leased item over the lease term, alongside a matching lease liability. Under the revised FRS 102, effective for accounting periods beginning on or after 1 January 2026, most Irish companies that lease assets will recognise one for most leases, with exemptions for short-term and low-value leases.
A reference number issued by the SBCI, after a short online application, confirming that a business meets the basic criteria for a scheme such as the Growth and Sustainability Loan Scheme. The business then applies directly to a participating lender, which makes its own credit decision. For the GSLS, the code is valid for six months from issue.
The Sustainable Energy Authority of Ireland, the State body that supports energy efficiency and renewable energy. For businesses it offers grants and supports, such as for solar PV and energy upgrades, and it runs the Triple E Products Register, which lists the equipment that qualifies for Accelerated Capital Allowances. Grant availability and rates change, so check the current scheme terms on seai.ie before planning a project around them.
A small or medium-sized enterprise, defined at EU level as a business with fewer than 250 employees and either annual turnover of no more than €50 million or a balance sheet total of no more than €43 million. Many Irish State schemes, the Credit Review Service and the Central Bank's SME Lending Regulations use this definition.
Central Bank of Ireland rules, made as S.I. No. 585 of 2015, that apply to regulated lenders, including credit unions, lending to SMEs in Ireland. They require written reasons when credit is refused, warnings and information for guarantors, contact with borrowers in arrears and an internal appeals process. The regulations refer to the Credit Review Office, whose role passed to the statutory Credit Review Service in 2026. Unregulated lenders are not covered, so ask any lender whether these protections apply.
An arrangement where a company sells an asset it already owns, such as equipment or vehicles, to a finance provider and leases it back, releasing cash tied up in the asset while continuing to use it. It is a form of asset refinance.
The sales ledger records what each customer owes. An aged debt report sorts those balances by how long they have been outstanding, such as under 30, 30 to 60 and over 90 days. Lenders use it to judge the quality of your debtors, particularly for invoice finance.
A loan where the borrower gives the lender a legal claim over assets, such as a fixed or floating charge in a debenture, which the lender can enforce if repayments are not made. For an Irish company, a charge must be registered with the CRO within 21 days of its creation. Secured loans usually allow larger amounts, longer terms and lower rates than unsecured loans.Read about Secured business loans
An asset or right a lender can rely on if a loan is not repaid, such as a fixed or floating charge, a debenture or a guarantee. Security given by a company must be registered with the CRO within 21 days. More or better security can mean a larger loan or lower rate, but it also puts those assets at risk.
A form of invoice finance where a company chooses individual invoices or customers to fund, rather than its whole sales ledger. It can suit companies with occasional large orders or seasonal peaks. Costs per invoice are often higher than for a whole-ledger facility.Read about Selective invoice finance
A charge for running an invoice finance facility, often a percentage of turnover funded or a fixed monthly amount, sometimes with a minimum annual fee. In factoring it also covers the provider's credit control and collection work. Add it to the discount charge to work out the full cost.
A rescue process for small and micro companies under the Companies (Rescue Process for Small and Micro Companies) Act 2021. It is led by a process adviser and runs mostly out of court; the court becomes involved only if a creditor or member objects to the rescue plan. A small company meets two of three tests: turnover up to €15 million, balance sheet up to €7.5 million and no more than 50 employees. Revenue and other State creditors can exclude their debts only on stated grounds, such as poor tax compliance. Take professional advice before considering it.
EU rules limit how much help a government can give a business. De minimis aid is a small amount allowed without prior EU approval, capped at €300,000 per undertaking over a rolling three-year period under Regulation (EU) 2023/2831. State-backed loans and grants may count towards this limit, so keep a record of what you receive.
Funding used to buy stock or inventory, where the lender pays suppliers or advances against stock held and the company repays as goods are sold. It can help companies buy in bulk or prepare for seasonal demand.Read about Stock finance
A State-owned body that makes low-cost funding and loan guarantees available to Irish SMEs, farmers and fishers through participating banks and non-bank finance providers. The SBCI does not lend directly to businesses. It runs schemes such as the Growth and Sustainability Loan Scheme, where applicants obtain an eligibility code from the SBCI before applying to a participating lender.
An arrangement set up by a large buyer in which a funder pays the buyer’s suppliers early, at a discount, and the buyer repays the funder on the normal due date. The supplier gets cash sooner, and the cost usually reflects the buyer’s credit strength rather than the supplier’s. It differs from factoring, which a supplier arranges itself against its own invoices.Read about Supply chain finance
Confirmation from Revenue that a company's tax affairs are in order. It is applied for online through ROS using the eTax Clearance system, and Revenue issues a Tax Clearance Access Number (TCAN) that others can use to verify it. Status is monitored continuously and can be withdrawn if the company falls out of compliance. Many State schemes and some lenders require it.
A loan of a fixed amount repaid over an agreed period, usually by regular monthly instalments of capital and interest. Terms range from a few months to several years. It suits one-off needs such as buying equipment or funding growth, rather than day-to-day cash flow swings.
The full sum a company will pay over the life of a loan or finance agreement, including the amount borrowed, interest and all fees. It is often the clearest way to compare business finance offers priced in different ways, such as by flat rate, factor rate or interest rate.
Funding and payment tools that support buying and selling goods, especially across borders. It includes letters of credit, supplier-payment finance and import finance, where a provider pays suppliers and the company repays later, often after the goods are sold.Read about Trade finance
How long a company has been actively trading, and the record of that trading shown in its filed accounts, bank statements and tax returns. Most lenders set a minimum, often between six months and two years depending on the product, because a track record is the best evidence of future repayment. A company with no trading history is treated as a start-up.
A company under Part 19 of the Companies Act 2014 whose members have unlimited liability for its debts. A private unlimited company must have at least two directors. ULCs are often used for tax or group-structuring reasons.
A loan where the company does not give the lender a charge over specific assets. Lenders rely on the company's trading record and cash flow, and often ask directors for a personal guarantee. Rates are usually higher than for secured lending because the lender carries more risk.Read about Unsecured business loans
A tax charged on most goods and services supplied in Ireland, collected by VAT-registered businesses and paid to Revenue. Current rates are 23% (standard), 13.5% and 9% (reduced), 4.8% (livestock) and 0% for certain goods. VAT bills can put pressure on cash flow, particularly where customers pay slowly.
A tax collected by Revenue when a vehicle is first registered in the State, whether bought new in Ireland or imported. The amount depends on the vehicle’s category and value and, for cars, on its emissions. VRT is not VAT and is not reclaimable on a VAT return, so include it in the cost of any vehicle your company finances.
Where the seller of a business agrees to receive part of the price later, effectively lending it to the buyer. It is common in management buy-outs and small acquisitions, and lenders often see it as a sign the seller has confidence in the business.
The money a business has available to fund day-to-day operations, calculated as current assets, such as cash, stock and debtors, minus current liabilities, such as suppliers and short-term debt. Working capital finance, including overdrafts, invoice finance and short-term loans, helps cover gaps between paying costs and being paid by customers.Read about Working capital finance

Finance terms: common questions

What is the glossary for?

It explains business finance terms Irish directors meet when borrowing, from APR, DSCR and factor rates to the Central Credit Register, tax clearance, debentures and personal guarantees. Each definition is short, in plain language and specific to how the term is used in Ireland.

Is there a credit score in Ireland?

No. The Central Credit Register does not give a score. Lenders use your company’s and directors’ records on the Central Credit Register, run by the Central Bank, alongside accounts and bank statements. Companies can request their own credit report free once a year.

What is the Central Credit Register?

The Central Bank’s database of loans of €500 or more to borrowers in Ireland, including companies. Lenders must check it for applications of €2,000 or more, and each check leaves an enquiry on your report. The Central Credit Register keeps a record of a loan application for 6 months. Not every non-bank lender reports to it.

What is the difference between APR and a flat rate?

A flat rate charges interest on the original amount for the whole term, even as you repay. An APR spreads the full cost, including most fees, over the balance actually owed, so it is usually much higher than the flat rate for the same deal. Compare offers on total amount repayable.

What is a personal guarantee?

A promise by a director to repay the company’s debt personally if the company cannot. It can put your own assets at risk. Many lenders ask for one on unsecured business loans, so read the terms carefully and take independent legal advice before signing.

Can’t find a term?

Email support@welcomefinance.ie and tell us which term you were looking for. We add new definitions as questions come in, checked against primary Irish sources such as Revenue, the Central Bank and the CRO. We keep every definition short and specific to Ireland.