Invoice finance in Drogheda

Yes, for small businesses. The Drogheda Nurture Fund, backed by Louth and Meath County Councils and run by the Louth County Enterprise Fund, lends up to €25,000 at 7% over three to five years in a target area that includes Drogheda and East Meath. LEO Louth or LEO Meath can help you apply.

Your company invoices its business customers as usual and assigns the invoices to a provider, which advances an agreed share of their value. When your customer pays, the provider releases the balance minus its fees. Before that, the provider reviews your customers and sales ledger to set a limit. Some providers say they can fund within 24 hours of an invoice once set up, though this is not guaranteed.

There are usually two charges: a discount charge on the money you draw, set as a margin over the provider's base or prime rate, and a service fee for running the facility, often a fixed annual amount charged monthly. Factoring, audits and bank transfers can add to the cost. Ask each provider for the expected annual cost based on your own turnover and customers.

Not in the usual sense. The provider advances money against invoices that are assigned or sold to it, rather than lending a fixed sum repaid in instalments. Your available funding moves with your sales ledger. In practice it behaves like a revolving facility, and with recourse your company must repay advances on invoices that are never paid, so treat it as a debt.

The main banks offer it through specialist arms: AIB Commercial Finance and Bank of Ireland Invoice Finance offer invoice discounting, and PTSB refers business customers to Bibby Financial Services Ireland, which offers factoring, discounting and recruitment finance. Independent providers also operate. Compare advance rates, both fees, the minimum term and notice period, and any minimum ledger size.

It depends on your approved debts. Bank of Ireland gives this example: €1,000,000 of debtors, less €100,000 of disapproved debts, leaves €900,000 approved; at an 85% advance, €765,000 is available. Old, disputed and intercompany invoices are usually excluded, and a provider may cap how much one customer can make up. The amount rises as your sales ledger grows.

Invoices to other businesses for goods delivered or work completed in full, usually under 90 days old, with a clear paper trail. Providers normally exclude disputed invoices, intercompany debts, contra debts where you also buy from the customer, cash sales and invoices to consumers. They also look at how creditworthy your customers are before approving them.