Other Funding Sources:

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Bank finance is not the only source of funds for your business. Whether you are starting out or developing your existing business, there are other options.

These include:

Equity

Equity is the business promoter's own investment in their business. If a business is to attract funds from external sources it helps if the owners have made a financial commitment to the business. In particular, financiers of and investors in business, generally like to see a business promoter investing their own money in their business. It shows the promoter's commitment to their business and reduces the overall level of bank debt needed to kick-start the business and to facilitate future growth.

Government Funding:

Enterprise Ireland

Enterprise Ireland is the government agency responsible for the development and promotion of the business sector in Ireland. Services provided by the agency include financial support/funding to enable businesses to compete and grow, so that they can contribute to regional and national prosperity.

The wide range of funding provided by Enterprise Ireland includes:

• Funding for Start-Up Companies - helps high-performing start-ups to meet their financial needs
• Enterprise Stabilisation Fund - available to support viable but vulnerable internationally trading companies
• Research & Development Funding - backs innovation in services, products and processes
• Company Expansion - funding to support a company's growth through expansion into new products, markets or scales of operation.

More information can be found on Enterprise Ireland's website

City & County Enterprise Boards

City & County Enterprise Boards foster early stage businesses employing fewer than 10 people in local and regional areas. There are 35 County and City Enterprise Boards across the country offering advice on the steps involved in setting up a business as well as the provision of grants/financial support such as: Capital Grants, Repayable Grants, Redeemable Preference Share Scheme, Employment Grants, Feasibility Grants.

For more information visit www.enterpriseboards.ie

Venture Capital

Venture Capital is money invested in innovative enterprises in exchange for a stake in the business. The standard time frame of the investment is 3-5 years, at which stage it is usually expected that there would be an Initial Public Offering, merger, acquisition or a buy-out. Venture Capital gives your business a cash injection to fund expansion, product development or acquisition. Unlike more traditional forms of finance, periodic interest payments are not expected on the investment - the payout comes at the end of the term. Your business can also draw on the expertise and advice of the venture capitalists. This could include commercial and strategic advice, a network of business contacts, an experienced director on your board, or assistance with staff and management development, fundraising or marketing. AIB is a major player in providing seed venture capital for early stage businesses. The AIB Seed Capital Fund (like most venture capital funds owned by large organisations) is managed externally from the Bank by a team of professional fund managers.

More information is available on wwww.aibseedcapitalfund.ie

EU Funding

The EU provides support to European SMEs in the form of grants, loans and - in some cases - guarantees. Support is available either directly or through programmes managed at national or regional level. These include the EU Structural Funds, the EIB Loan Fund for SMEs and funding for specialised areas such as sustainable energy. SMEs can also benefit from non-financial assistance in the form of various programmes and business support services.

More information is available on www.eif.eurpoa.eu

Business Angels

These are private individual investors who invest capital in companies during the early stages of development. Business Angels usually seek active participation, contributing their business know-how or experience in company management. They also generally expect an equity stake in the business in which they invest.

Revenue Commissioners

The Seed Capital Scheme (SCS) and Business Expansion Scheme (BES) allow individual investors to obtain income tax relief on investments in each tax year. There is no tax advantage for the company in receipt of the investment, but securing this funding may enhance its ability to attract other external funding. Enterprise Ireland has responsibility for certifying client companies as eligible for BES investment.

For a comprehensive directory of all the support packages available, visit the Government's website www.basis.ie

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.

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