Introduction

Every small to medium-sized enterprise (SME) in Ireland aims to grow.

In an ideal world, here’s how this would happen: as time passes, the SME’s reputation builds, more customers appear and cash reserves increase. This is then reinvested to encourage further expansion.

All of this is the ideal – but as anyone operating a business knows, reality can be very different…

SMEs enable everyday life in Ireland. Across the country, hotels, restaurants, garages, pharmacies, dry cleaners, solar panel installers, car dealerships and thousands of other businesses supply the essential products and services needed by people.

Whether they serve other businesses or direct to consumer, these are the businesses that GRID Finance is committed to supporting with flexible and imaginative financing tools. In this article, we examine what happens when growing businesses need flexible business funding in a hurry – a situation familiar to every SME.

The availability of ‘quick business loans’ has grown in recent years. As these differ from the more traditional general purpose loans traditionally offered by banks and other lenders, let’s take a closer look to understand what they are, why they’re different and when they might be the right option for your business. 

Key takeaways

Read on to see: 

• How quick loans differ from traditional business loans.

• The advantages of fast business funding for SMEs

• What to look for in a flexible funding provider.

• How GRID Finance delivers quick and tailored support.

Why speed matters in SME finance

Today, we all live in a 24/7 world that seems to demand instant gratification. Customers require immediate responses, deliveries and service – and woe betide any business that doesn’t deliver on these expectations. With so much choice available, a customer will simply click on the next option. 

If survival of the fastest is the overarching principle governing how people do business, what if something strains your ability to operate? For example, if an unexpected opportunity pops up – perhaps a very large order appears, a good review prompts a surge in customer demand or you get the chance to acquire stock, equipment or premises at a knock-down rate.

Or, more negatively, how would you respond if a large payment you were depending on didn’t materialise, and you then couldn’t cover payroll costs?

Issues like these don’t generally affect large businesses sitting on healthy cash reserves. But it’s a different story for many Irish SMEs. Generally, they don’t have a comfortable cash cushion and need to turn to external funding sources.

But if a lender isn’t able or willing to be agile, SMEs can find themselves facing a tricky situation or missed opportunity. So for many smaller businesses looking to borrow, speed isn’t just a convenience – it’s an absolute necessity.

What are ‘quick business loans’?

A quick business loan’s name gives a very clear idea of what this type of financing offers. Typically, a quick business loan is one that can be applied for relatively easily and, if approved, funds are transferred in a day or two. 

As such, they can sometimes provide quite a contrast to traditional bank loans. Loans such as these are often more complicated or demanding at the application stage. Following this, lenders can sometimes seem to drag their heels before the money finally lands in the applicant’s account.

So why are fast business loans and traditional loans so different?

One of the key reasons is that the entire process for managing quick loans is usually more automated – the application is made online, fewer references are asked for, and credit checks and approval decisions are generally handled by computer with no human intervention. This is all possible when the amount applied for is relatively small.

As such, a quick loan is generally more suitable for SMEs which don’t need to borrow large sums, don’t have a solid credit history because they’re newly established, or are under pressure to obtain funds fast – for example, if they face an unexpected cash-flow crunch.

However, the convenience built into quick business loans often has a price: for example, they can come with higher interest rates or shorter repayment periods, both of which create pressures all of their own.  

Benefits of fast and flexible business funding 

Having time to consider every business step and decision would be wonderful – and sometimes it’s very important not to rush into taking action. But as every SME owner knows, there are many occasions when the world won’t wait for you.

So whenever one of the emergencies or opportunities outlined above presents itself, you need to act fast – and this is when the speed of a quick business loan comes into its own. After all, if a deadline must be met, or you can’t let an important chance slip through your fingers, you need a fast decision from a lender. 

The simplicity of quick business loans is another crucial advantage. SME managers usually have more than enough on their plate, so dealing with far less paperwork when applying for a loan can be a blessing.

Keeping the operational wheels turning is essential and taking time out to deal with a complicated application process isn’t always appreciated by staff, customers or suppliers. 

Another reality of business life that quick business loans address is the need for flexibility. Standard business loans generally demand the same repayment amount on a fixed date each month, regardless of whether the borrower is having a bumper month or trade could be better.

GRID Finance offers a fast, flexible funding solution to a business loan, explained later in this article.

These automatically adjust repayments to reflect trading conditions and the ability of the borrower to repay. Doing this obviously reduces the overall financial pressure until business picks up – a benefit that’s particularly valuable for SMEs that experience seasonal peaks and troughs.

What to consider when applying for quick business loans

Even if a business loan is needed quickly and the application process is more streamlined than that for a standard loan, other important steps must be taken and precautions observed. 

First, you must ensure that your business’s trading and credit history is solid enough. Understandably, lenders need to be confident that you will repay a loan and there isn’t a risk of default.

A number of commercial credit rating agencies can offer up-to-date reports on your business’s creditworthiness. Since lenders will check these, it may be worthwhile to also do so yourself ahead of applying for a loan.

At the same time as assessing your business’s track record, it’s sensible to do your own homework regarding potential lenders. Checking their reputation and reviews will indicate if there’s a possibility you’ll encounter hidden fees or aggressive repayment collection practices down the line. 

You must also be realistic about the ability to repay without putting your business under unreasonable strain.

Here, flexibility regarding individual repayments is an important factor: not being tied into a rigid repayment schedule makes unexpected financial or trading hiccups far easier to manage. The rule of thumb is simple: the more flexibility your loan offers you, the better.

Why GRID Finance is Ireland’s fast, flexible funding partner

GRID Finance takes a different approach to that adopted by traditional lenders such as banks.

Specifically, we were established on the understanding that SMEs need speed, simplicity and flexibility when obtaining finance. This approach isn’t always offered by more mainstream lenders.

Knowing the realities and pressures they face every day, GRID Finance believes that SMEs deserve to be supported with an easier lending experience – and that’s exactly what we’ve created.

So no matter why funding is needed urgently, SMEs can be confident that a flexible, affordable choice is available from GRID Finance.

How GRID Finance compares to traditional lenders

After considering the principal issues affecting an Irish SME that needs a quick business loan, how does GRID Finance’s offering compare to those of traditional lenders? The answer is very well – for some important reasons.

The accelerated approval process means decisions can be delivered within 48 hours. Variable repayments match the business’s levels of trade. And, equally importantly, GRID Finance’s solutions have been designed specifically to meet the needs of SMEs.  

When is quick funding the right choice?

At a glance, the convenience and simplicity of quick business loans seem to make them an obvious choice for any SME in need of funding. However, before making any decisions, it’s worth asking some key questions to ensure this is the right path:

• Does your business have a pressing need for a cash injection right now?
  
• Can you be certain that the business will be able to meet the loan repayments, even if there’s a downturn in trade?
  
• Is there any other source of funds – for example, from the directors’ personal resources?
  
• Are you sure that the lender will work positively with you over the entire life of the loan?

Just as there are an almost infinite number of businesses, there are endless reasons why an SME might want to arrange fast business funding.

It might be to replace some equipment that’s essential for the business – an engine for a cruise boat, for example.

Perhaps the chance to acquire good quality stock at a bargain price has appeared out of the blue. Or possibly a client whose payment you were depending on has suddenly announced they are closing, leaving you with a hole in your cash-flow.

All of these could be considered legitimate reasons to borrow. 

On the other hand, there are times when a quick business loan may not be the right answer – for example, if an extension to your business premises needs to be added. In this case, alternative funding such as a mortgage should be explored.

Conclusion

Loans can be a vital tool for the survival and growth of any Irish SME. As this article makes very clear, there are times when immediate decisions and action are vital. In these cases, a more flexible and efficient option – designed specifically with SMEs in mind – can save time, reduce pressure on budgets and cut costs in the long run.

These are the key benefits experienced by business borrowers that work with GRID Finance. Rather than impose rigid and unrealistic rules, our aim is to partner with Irish SMEs in a way that works for everyone and helps enable growth and success.   

It’s an approach that our clients appear to really appreciate, with one recently saying: “They are professional, knowledgeable, and truly dedicated to helping businesses succeed”. We couldn’t have expressed it better ourselves!

How GRID Finance Flex Facilities Work

GRID Finance Flex provides a cash advance that is repaid through your future sales. While similar to a traditional loan, it operates as a flexible facility. The advance is automatically paid down through your sales as they come in via GRID Finance’s payment integrations.

This means that during slower months, you’ll make smaller payments, and during busier periods, you’ll naturally catch up. The facility ebbs and flows with your sales pattern to support your cash flow, and you can access the facility multiple times once your balance falls below the agreed threshold.