Small business loans in Ireland: options, costs and what lenders check

Most Irish lenders and State schemes use the EU definition of a small and medium-sized enterprise (SME). The SBCIA 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.’s Growth and Sustainability Loan Scheme, for example, applies EU Recommendation 2003/361/EC.

• SME: fewer than 250 employees, and annual turnover of €50 million or less and/or a balance sheet total of €43 million or less.
• Small enterprise: fewer than 50 employees, and turnover or balance sheet total of €10 million or less.
• Micro-enterprise: fewer than 10 employees, and turnover or balance sheet total of €2 million or less.

Staff and financial figures usually include linked and partner enterprises, so a small company owned by a larger group may not count as an SME. The size of your company matters because it decides which State supports you can use. For example, Microfinance Ireland lends only to micro-enterprises, and the Central Bank’s enhanced SME Lending Regulations protections focus on micro and small enterprises.

Under €25,000

Smaller loans are usually unsecured and assessed quickly. Options include:

• Your own bank. Bank of Ireland, for example, offers business loans from €1,000 to €120,000 that you can apply for online. PTSB term loans start from €5,000.
• Microfinance Ireland, for micro-enterprises: loans from €2,000 to €50,000, including a Small Loan of €2,000 to €5,000 with simpler paperwork.
• Your credit union, if it offers business lending to members.
• A non-bank lender, if your company needs speed or flexible repayments. Many non-bank lenders start at €10,000.

€25,000 to €250,000

This is the most common range for 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., stock, refits and growth projects. Options include:

• Bank term loans, often unsecured up to a level set by the bank, with security more likely as the amount grows.
• The SBCI Growth and Sustainability Loan Scheme (GSLSA 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.): €25,000 to €3 million over seven to 10 years, unsecured up to €500,000 subject to certain exceptions. You get an eligibility code from the SBCI, then apply directly to a participating lender. See our SBCI loans page.
• Non-bank term loans. Linked Finance, for example, lends €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.
• Flexible products that are not traditional loans, such as a merchant cash advanceA 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. repaid from card sales, or 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..

More than €250,000

Larger loans usually involve more detailed assessment, management accountsInternal financial reports, usually monthly or quarterly, showing a company's recent trading, balance sheet and cash position., projections and often security or personal guaranteesA legally binding promise by a director or other individual to repay a company's debt if the company cannot.. Bank of Ireland’s loans from €120,000 to €500,000 run over terms of up to 15 years. Above €500,000, Bank of Ireland asks you to contact a relationship manager. GSLS loans above €500,000 may need security, at the lender’s discretion; any personal guarantee is capped at 20% of the loan.

• Banks (AIB, Bank of Ireland, PTSB): the largest source of SME lending, with published standard rates. The Central Bank reported €1.2 billion of gross new bank lending to SMEs in Q2 2026.
• Non-bank lenders: often faster decisions and less security, at a higher cost. Some specialise in particular products or sectors.
• Microfinance Ireland: a not-for-profit lender for micro-enterprises, including start-ups, which can consider businesses that have struggled to get bank credit.
• Credit unions: local lending to members, often smaller amounts.
• SBCI schemes: State-backed loans delivered through participating lenders, not by the SBCI itself.

Our neutral guide to business lenders in Ireland explains each group in more detail, including how to check a lender is genuine.

The Central Bank’s figures give the clearest benchmark. The average interest rate on new bank lending to Irish SMEs was 5.59% in Q2 2026, published on 15 October 2026. Its monthly retail interest rate statistics show an average of 4.59% on new loans to companies under €250,000 in August 2026. Those are averages across all bank lending, including secured and long-established borrowers.

Published examples on 22 October 2026 include Bank of Ireland’s business overdraft at 8.05% variable and PTSB’s business overdraft at 8% variable. Non-bank term loans typically cost more: Linked Finance lends €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. Merchant cash advances and revenue-based finance usually charge a fixed fee rather than an interest rate, so compare them on the total amount repayableThe full sum a company will pay over the life of a loan or finance agreement, including the amount borrowed, interest and all fees..

For the latest published bank rates and how they are changing, see our guide to business loan interest rates in Ireland.

Which fees should you ask about?

The interest rate is only part of the cost. Before you accept any offer, ask the lender to confirm in writing:

• Any arrangement, facility or set-up fee, and whether it is deducted from the loan.
• Legal, valuation or security costs, which Bank of Ireland and PTSB both say may apply where security is needed.
• Whether the rate is fixed or variable, and what it is linked to.
• Any early repayment charge if you clear the loan ahead of schedule.
• The total amount repayable over the full term.

Illustrative example

Lenders want to know two things: can your company afford the repayments, and what happens if it cannot. Expect them to look at:

• Trading historyHow long a company has been actively trading, and the record of that trading shown in its filed accounts, bank statements and tax returns.: many lenders want two or more years of accounts; some card-sales and revenue-based funders consider six to 12 months.
• Turnover, profit and cash flow, usually from filed accounts, management accounts and six to 12 months of bank statements.
• Affordability, often measured with the debt service coverage ratioA measure of whether a company earns enough to meet its loan repayments..
• Tax compliance, usually through a tax clearance certificateConfirmation from Revenue that a company's tax affairs are in order..
• Credit history: lenders search the Central Credit Register for the company and often the directors. The Central Credit Register does not give a credit score; lenders look at the actual repayment record.
• Existing borrowing, including overdrafts, leases and Revenue arrangements.
• Security and guarantees, especially for larger amounts or younger companies.

Our guide to business loan requirements in Ireland goes through each criterion in detail, and our documents checklist lists what to gather.

Not always. Smaller loans are often unsecured, and the GSLS is unsecured up to €500,000 subject to certain exceptions. But many lenders, including many non-bank lenders, ask directors of small companies for a personal guarantee. Microfinance Ireland does not take asset security, but for limited companies it asks directors or other key people to sign an indemnity, which is reported to the Central Credit Register. Read the terms carefully before any director signs. If you want to avoid one, our unsecured business loans page explains the trade-offs.

1. File your accounts and annual return with the CRO on time. Lenders check your filing status, and overdue filings can rule a company out of some lenders and schemes.
2. Keep your tax affairs up to date so you can get tax clearance.
3. Prepare recent management accounts and a simple 12-month cash flow forecast.
4. Check your company’s Central Credit Register report. Companies can request one free report each year.
5. Be clear about the purpose, amount and how the loan will be repaid.
6. Apply to one lender at a time where possible. Every lender search leaves a footprint on your Central Credit Register report. The Central Credit Register keeps a record of a loan application for 6 months.
7. If a bank refuses, ask for its reasons in writing. Regulated lenders must give them.

This guide is mainly for established limited companies. Start-ups registered as limited companies in Ireland can apply through Welcome Finance. Most lenders look for some trading history, so options may be fewer for a new company. Sole traders and partnerships cannot apply through us. Microfinance Ireland lends to micro-enterprises including start-ups and sole traders, and your Local Enterprise Office can help with grants, mentoring and a reduced Microfinance Ireland rate. Our guide to start-up business loans in Ireland sets out the options.

Matching the product to the purpose usually gives the lowest cost and the least strain on cash flow:

• Day-to-day cash flow and short gaps: an overdraft, a working capital loan or a short-term loan.
• Equipment, vehicles or machinery: asset finance, where the asset is the security and repayments are spread over its working life.
• Stock and supplier payments: stock or trade finance, repaid when the goods are sold.
• Slow-paying business customers: invoice finance, which grows with your sales.
• Seasonal, card-based trade: a merchant cash advance or revenue-based finance, where repayments rise and fall with sales.
• Growth projects, fit-outs or energy upgrades: a term loan or a State-backed scheme such as the GSLS.
• A one-off tax bill: a short-term business loan, or a phased payment arrangement agreed with Revenue.

• Using short-term money for long-term needs, so repayments are too high for the cash the project produces.
• Comparing headline rates rather than the total amount repayable, including fees.
• Applying to several lenders at once, which leaves several footprints on the Central Credit Register.
• Leaving it too late. Lenders are more comfortable when you apply before cash becomes tight.
• Signing a personal guarantee without understanding what it covers or taking independent advice.

If your small limited company is trading and needs an unsecured or short-term business loan, working capital, a merchant cash advance, revenue-based finance, stock finance or trade finance, our panel of specialist non-bank lenders may be able to help. Their pricing is often higher than a bank’s, so if your bank or the GSLS can meet your need, that may be cheaper, and we will say so. 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.