MICROFINANCE IRELAND Continuing to support small businesses to help them manage rising operating costs
Microfinance Ireland (MFI), the government funded not-for profit lender, is providing much needed financial support by way of loan finance up to €25,000 to support micro-enterprises as they now try to navigate their business against a backdrop of labour shortages and spiralling costs for energy and raw materials.
Many business owners were extremely resilient throughout the pandemic and adapted significantly to maintain their businesses during that time. However, as we put the pandemic behind us, a new crisis quickly emerged with all businesses now feeling the practical impacts of the global energy crisis. Increasing energy costs, rising inflation, lower consumer confidence, along with the withdrawal of Ulster Bank and KBC Bank from the Irish market, has created something of a ‘perfect storm’ for small firms, with many now experiencing considerable cashflow pressures.
CRITICAL FUNDING ROLE
Many early-stage businesses find it hard to get finance if they have less than 12 months trading figures behind them. Also, with the consolidation of the banking market in Ireland, many small firms who must now switch their bank may find it challenging to agree the same working capital facilities they had before.
Des McCarthy adds: “Microfinance Ireland continues to play a critical role in the funding eco-system in Ireland. We lend to both start-ups and established small businesses who can’t access funds from the traditional banking market. MFI is delighted to receive applications from any eligible small business that needs to borrow, and we assess all applications in a fair and supportive manner. Our mandate from government is to support small businesses, protect jobs and the economy overall. That support is needed now more than ever.”