Microfinance Ireland vs a non-bank business loan

Microfinance Ireland is a not-for-profit lender set up to deliver the Government’s Microenterprise Loan Fund. It works closely with the Local Enterprise OfficeOne 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. network. It lends to commercially viable micro-enterprises, and it says it can consider applications from businesses that may have been declined by a bank. Its decisions are based on the viability of the business and its ability to repay.

Key MFI loan features

• Loan size: €2,000 to €50,000, according to MFI’s website. Some older LEO pages still quote a lower maximum, so check the current figure with MFI.
• Loan types: start-up, cash flow, expansion and small loans, plus loans for specific needs listed on its site.
• Term: LEO pages describe terms of one to five years, with fixed repayments.
• Rate: applying through a LEO gives a 1% reduction on the interest rate. LEO Kildare’s page quotes 6.5% APRA standardised measure of the total yearly cost of credit, including interest and certain charges. direct and 5.5% APR through the LEO network. Confirm the current rate before you apply.
• Fees: LEO pages state no fees or charges, and no penalty for early repayment.
• Top-ups: businesses with other funding can apply for co-funding, as long as total MFI lending stays within €50,000.
• Support: free mentoring from the LEO Mentor Panel once the loan is approved.

Who can apply to MFI?

• Micro-enterprises with fewer than 10 employees and annual turnover under €2 million.
• Sole traders, partnerships and limited companies.
• Start-ups as well as established businesses.
• Businesses based in Ireland that are not in MFI’s list of excluded sectors.

Non-bank lenders are specialist finance providers that are not retail banks; our neutral directory of business lenders in Ireland lists the main ones. In Ireland they include online lending platforms, fintech lenders and specialist working capitalThe 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. providers. They tend to make decisions faster than banks and lend to companies a bank might turn down, but they usually charge more.

Examples of published terms, as checked on 21 October 2026:

• Linked Finance, regulated by the Central Bank of IrelandIreland's financial regulator and part of the Eurosystem., offers unsecured term loans of €10,000 to €500,000 over 6 to 60 months, for companies with turnover over €100,000; the rate depends on the company’s credit grade. It requires a personal guaranteeA legally binding promise by a director or other individual to repay a company's debt if the company cannot..
• 365 Finance offers merchant cash advancesA 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. of €10,000 to €250,000 to businesses with at least six months’ trading and €10,000 a month in card sales, repaid as a share of card takings.
• Other non-bank providers offer revenue-based financeFunding repaid as an agreed share of a company's future revenue rather than through fixed monthly instalments, so repayments flex with sales., stock financeFunding used to buy stock or inventory, where the lender pays suppliers or advances against stock held and the company repays as goods are sold. and supplier-payment finance, which MFI does not.

Each lender makes its own decision, and some say they can decide within 24 hours of a complete application; this is not guaranteed.

• Amount: MFI €2,000 to €50,000. Non-bank lenders typically from about €10,000 up to €250,000 or €500,000, depending on the product.
• Who can borrow: MFI includes sole traders, partnerships and start-ups. Non-bank lenders mostly want trading businesses, and many focus on limited companies.
• Business size: MFI is limited to fewer than 10 employees and turnover under €2 million. Non-bank lenders have no such cap but often set minimum turnover or card sales.
• Cost: MFI rates are usually lower and published. Non-bank pricing varies with risk and product, and is usually higher.
• Repayments: MFI uses fixed repayments. Non-bank options include fixed instalments or repayments that flex with card sales or revenue.
• Personal guarantee: check with MFI for your loan. Many non-bank lenders require one; some card-sales products say they do not.
• Extra support: MFI with a LEO includes free mentoring. Non-bank lenders usually offer an account manager but not business mentoring.
• Bank refusal: MFI says it lends to businesses having difficulty getting bank loans, and may ask for evidence. Non-bank lenders also lend to companies outside bank criteria.

• You are a sole trader, partnership or start-up. Many non-bank lenders look for an established trading record. Our guide to start-up business loans in Ireland explains where a start-up can get a loan.
• You need €50,000 or less and have fewer than 10 employees.
• You want the lowest published rate and fixed repayments.
• You would value free mentoring and help from your LEO with your business plan.
• You have been declined by a bank and your business is viable.

• Your company has 10 or more employees, or turnover of €2 million or more, so it falls outside MFI’s micro-enterprise rules.
• You need more than €50,000.
• You want repayments that flex with card sales or revenue, such as a merchant cash advance or revenue-based finance.
• You need to pay suppliers or buy stock quickly, where stock finance or trade financeFunding and payment tools that support buying and selling goods, especially across borders. is the better fit.
• Timing is critical and you accept a higher cost for a potentially faster decision.

1. Write a short summary of what the loan is for and how it will be repaid.
2. Prepare cash flow projections for at least the loan term, or 12 months for a start-up.
3. Gather six to 12 months of business bank statements.
4. Have your latest accounts, filed with the CROThe 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. if you are a company, or your Form 11 if you are a sole trader.
5. Get your tax clearance certificateConfirmation from Revenue that a company's tax affairs are in order. or tax clearance access number.
6. List existing debts, including any arrears or Revenue arrangements.
7. Check your company’s record on the Central Credit Register. The Central Credit Register does not give a credit score, but lenders review this report; companies can request one free each year.
8. For MFI, contact your LEO first to get the rate reduction and help with the application.

Our guide to documents for a business loan application explains each item.

1. Contact your Local Enterprise Office. A LEO business adviser can talk through your plans, help with the application and confirm whether MFI is the right fit.
2. Prepare a business plan, cash flow projections and the documents listed above. Start-ups should explain the owner’s experience and how the first customers will be won.
3. Apply through the LEO to get the 1% rate reduction, or apply directly to MFI.
4. MFI assesses the viability of the business and its ability to repay. It may ask follow-up questions.
5. If approved, sign the loan agreement and take up the free mentoring offered through the LEO Mentor Panel.

Non-bank lenders usually work from data rather than a business plan. Expect them to connect to your bank account through open banking, or to ask for six months of bank statements, and to review your latest filed accounts, card terminal statements for card-based products, tax clearance and director ID. Most search the Central Credit Register, which leaves a record of the enquiry, and lenders must check it for applications of €2,000 or more. Some providers say they run only a soft search for a first quote. Applying to several lenders at once can leave multiple enquiries on your record, so be selective and ask each lender how it checks before you apply.

Yes, in some cases. MFI says businesses that already have other funding can apply for co-funding, as long as total MFI borrowing stays within €50,000. A lender will look at all your repayments together, so make sure the combined cost is affordable. If a bank has refused your company, our guide on what to do if a bank refuses a business loan sets out your options, and grants and State supports for Irish SMEs covers funding you do not repay.

We can only help limited companies (LTD, DAC, PLC or ULC) registered in Ireland. Start-ups registered as limited companies can apply, though most lenders look for some trading history, so options may be fewer for a new company. Microfinance Ireland and your Local Enterprise Office are other good places to look. If your company needs an unsecured or short-term loan, working capital, a merchant cash advance or revenue-based finance, we can tell you which lenders on our panel may consider your company; we do not give financial advice. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of Ireland. We work only with companies registered in Ireland (LTD, DAC, PLC or ULC), we are paid commission by lenders and do not charge your company a fee. We never ask for payment upfront.