Credit Options

Credit Options

Businesses seeking credit for financing innovation or research generally look for medium-term finance.

Credit Options

Businesses seeking credit for financing innovation or research generally look for medium-term finance such as business and term loans.  For more information on medium-term credit options, please click here.

For more information on managing your credit and dealing with your bank, please click here.

Credit Guarantee Scheme

The Irish government has announced plans for a partial credit guarantee for small businesses in 2012.  This scheme will initially provide guarantees on qualifying new credit to qualifying businesses for one year, but the scheme could be extended for up to two further years.  The credit provided may be loans or invoice finance facilities, although other lending products or facilities may be covered.  Each loan or invoice finance facility provided will be guaranteed for up to three years, although the loan repayment term may be up to ten years.

The scheme aims to facilitate additional lending to small businesses who can demonstrate that they can service and repay the credit but lack security or collateral to support the application or whose business involves a novel business model, market, sector or technology.  It is up to the lender to decide whether or not the business is eligible for credit under the scheme and credit provided is subject to the lender’s normal commercial terms and pricing.  The borrower must also pay the government an annual premium to the government based on the outstanding balance of the credit provided for the term of the guarantee.

The government, which has estimated that scheme will be able to facilitate up to €150 million of additional lending to SMEs per annum, is expected to announce further details in early 2012.