Finding the Right Lending Product for Your Business

<<< Back to the Helping Businesses Source Finance Guide

AIB offers several different types of lending products for business customers. Talk to your Business Relationship Manager to determine the optimum funding structure for your business. This is what will give your business the financial strength as well as the flexibility that it needs:

1. An Overdraft facility:

A Business Overdraft allows your business current account to go into an overdrawn position, up to a pre-agreed limit. In any 12-month period, an Overdraft facility should fluctuate between credit and debit balances.

2. Invoice Discounting:

Many businesses suffer from slow or late payment of invoices. Invoice Discounting from AIB is a quick solution to your working capital needs, providing a totally confidential debt-financing facility. With Invoice Discounting, we can help your business overcome cash flow problems by giving you immediate access of up to 80% of invoiced debt without affecting your relationship with your customers. While Invoice Discounting is primarily a working capital facility, it may also be used to fund transactions such as mergers, acquisitions, management buyouts, management buy-ins and capital expenditure programmes.

3. PromptPay:

PromptPay is a short term loan facility that enables a business to spread the payment of once-off annual costs over 10, 11 or 12 monthly repayments. Typical business expenses such as: preliminary tax, pension contributions, commercial property rates, subscription fees to professional/trade associations and annual audit fees can all be covered.

Customers can benefit from fixed repayments. In addition, interest payments may be allowable against taxable profits**. Optional Payment Protection is available for self employed people, professionals and company directors***.

4. Insurance Premium Finance (IPF):

Insurance Premium Finance is a short term loan available for payment of general insurance premiums including: Motor, Fire and Burglary, Employer's Public and Product Liability, Professional or Medical Indemnity Insurance. Repayments are over 10, 11 or 12 months and interest payments may be allowable against taxable profits**.

5. Loan facilities:

Business Loan finance can vary in term from one year to as long as 15 years. The repayment term will ideally be designed to tie in with the economic useful life of the company asset being funded. The title to that asset will typically be held by the bank as security for the business loan.

6. EIB Loan Scheme:

EIB Loan Scheme is a particular form of medium term borrowing, made available in partnership with the European Investment Bank (EIB), to help fund business expansion projects for SMEs.

Contact your Business Relationship Manager to find out whether your business qualifies for this competitively priced source of funding.

Note: You might also want to consider whether bank finance is your only option or whether your business is more suited to equity investment.

Chapter 4 - Some Credit Jargon Explained >>>

Imprtant Regulatory Information

AIB Insurance Services Ltd is regulated by the Central Bank of Ireland.

Credit Facilities

Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.

Back to Top