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Banking supports

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Micro Finance Ireland

If your business is impacted or may be impacted by COVID-19 resulting in a reduction of 15% or more in actual or projected turnover or profit, AND you are having difficulty in accessing  finance from commercial lending providers, the MFI COVID-19 Business Loan may be able to help your business.

In addition, Local Enterprise Offices in every county provide a range of business supports for micro- enterprises including business continuity and preparedness advisory supports connected to the  COVID-19 outbreak. Contact your Local Enterprise Office for more information.

Eligibility

  • Any business (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m
  • Not in a position to avail of finance from Banks and other commercial lending providers
  • 15% of actual or projected turnover or profit is negatively impacted by COVID-19

Product Features

  • Loans from €5,000 – €50,000
  • Supports businesses who have been impacted negatively by coronavirus in Ireland
  • Loan terms typically up to 3 years
  • Up to 6 months Interest only payments
  • No fees/no hidden costs/charges
  • Fixed repayments/no penalty for early repayment

Application process

Application documentation can be found at this web address – https://microfinanceireland.ie/loan-packages/covid19/

  • Complete application form
  • Prepare monthly cash flow forecast for 12 months
  • Complete Micro Finance Ireland Business Plan
  • Submit six months bank statements and in the case of a Limited company six months bank statements for Directors and Shareholders holding 25% or more of the issued share capital of the company.
  • For Limited company applicants only – A central Credit Register report for each Director and for any Shareholders holding 25% or more of the issued share capital of the company.

Strategic Banking Corporation of Ireland

The Department of Business, Enterprise and Innovation announced a number of supports for businesses facing challenges being presented by the current Covid-19 situation. The Credit Guarantee Scheme is in place and available now to SMEs subject to the relevant terms and conditions. Separately the SBCI is currently working to finalise the terms and conditions of the SBCI COVID19 Working Capital Scheme and the eligibility application process for this. The SBCI website will be updated as soon as these are finalised. In the interim if you wish to be kept informed on developments please email the SBCI at info@sbci.gov.ie

SME Credit Guarantee Scheme (CGS) 

The Scheme aims to assist viable SMEs, which under normal lending criteria are unable to borrow from their bank, in accessing credit. The scheme operates by providing an 80% guarantee to participating finance providers (currently AIB, Bank of Ireland and Ulster Bank) on qualifying loans to SMEs.

The Scheme is operated on behalf of the Department of Business, Enterprise and Innovation (D/BEI) by the Strategic Banking Corporation of Ireland (SBCI) and is available from the participating banks (AIB, Bank of Ireland and Ulster Bank). If you are an SME,  you can approach any one of the participating banks and apply for a loan facility under CGS.

Key Features of the Scheme:

  • Facilities of €10,000 up to €1m
  • Terms of up to 7 years
  • Term Loans, Demand Loans and Performance Bonds

 

Who is eligible for the Scheme? 

SMEs may be eligible if they:

  • Are involved in a commercial activity
  • Are a sole trader, partnership, franchise, co-operative or limited company
  • In the lender’s opinion have a viable business proposal
  • Are able to repay the facility

 

How to apply do for the scheme

The scheme is available through participating lenders AIB, Bank of Ireland and Ulster Bank at the web addresses below:

AIB : https://business.aib.ie/products/finance-and-loans/credit-guarantee-scheme

BOI : https://businessbanking.bankofireland.com/credit/credit-guarantee-scheme/

Ulster Bank : https://digital.ulsterbank.ie/business/loans-and-finance/alternative-financing.html

 

Allied Irish Bank (AIB)

AIB’s Covid 19 supports are available at this web address – https://aib.ie/covid19

The financial supports include the following

Cashflow products available to customers and web address for applications

Business Credit Line – https://business.aib.ie/products/finance-and-loans/business-credit-line?_ga=2.155766331.160936585.1584353997-1581556376.1584353997

Farmer Credit Line – https://business.aib.ie/products/finance-and-loans/business-credit-line?_ga=2.155766331.160936585.1584353997-1581556376.1584353997

Promptpay – https://business.aib.ie/products/finance-and-loans/promptpay-and-insurance-premium-finance?_ga=2.146517556.160936585.1584353997-1581556376.1584353997

Business loans of between €2,000 and €60,000 can be applied for on line at this web address : https://business.aib.ie/products/finance-and-loans/business-loans?_ga=2.185208617.160936585.1584353997-1581556376.1584353997

Customer in Difficulty (Forbearance Requests)

AIB have a number of possible solutions available depending on your circumstances

  • Capital Moratorium
  • Capital and Interest Moratorium
  • Covenant Waivers

AIB Advisors are available in branch or on the phone 1890 478 833

 

Bank of Ireland

The supports offered by Bank of Ireland are as follows:

  • Emergency working capital, prioritising loan decisions for impacted customers, payment flexibility on loan facilities, and the provision of trade finance and foreign currency products to support sourcing products from new suppliers internationally.
  • Customers who are concerned about the impact of COVID-19 on their business are encouraged to make contact with their Business Relationship Manager or ring 0818 200 348.
  • Bank of Ireland sectoral experts – in agriculture, manufacturing, hospitality, health, food and beverage, and retail convenience – are also available to support customers.

A full listing of supports from BOI are at this web address: https://businessbanking.bankofireland.com/covid-19/supports-for-businesses/

 

Ulster Bank

Ulster Bank have introduced a financial assessment that is designed to evaluate your financial situation and to offer support where you need it most.

Specially trained staff will carry out a financial review. They will review your current financial situation and take you through the repayment options available. These options include:

  • Extending loan terms
  • Temporarily moving to interest only payments
  • Reduced payments on a temporary basis
  • Postponement of monthly repayments for a defined period of time

A full listing of supports from Ulster Bank are at this web address: https://digital.ulsterbank.ie/personal/help-and-support/struggling-financially.html

 

Solutions for your business to help start 2020 positively…

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Firstly, let us take the time to wish all our clients and friends a very happy and prosperous New Year. 2020 comes to us all with a lot of uncertainty but we will weather any financial storms that may result from Brexit with our patented Irish resilience. As we have bid farewell to the previous decade and turned the page into a new one, thoughts often turn to change and what we can do to change our selves, our positions in life and our career trajectory. We here at EcovisDCA know that all of our clients and friends are incredibly hard working and focused and as such do not wish to start the decade off on a negative footing with a list of changes to be made, rather we have decided to focus on solutions to make your business and financial life run smoother in the years ahead.

 

Update your Payroll System:

As we are all aware, there has been a major overhaul to the PAYE system that has recently come into effect in Ireland. We have discussed these changes in detail in the past, and how they will affect the day to day running of your business, and whilst your payroll staff have long been setting up for this event, it is a good idea to start this new decade off with a review of your new system in case there are ways in which it can be more efficient for you. These PAYE changes are the perfect opportunity to update your current payroll software if needed.

2019, The Year in Review:

Whilst it is important not to dwell entirely on the past, whether 2019 was a more positive or negative financial year for your business it is essential to take a glance into the rearview mirror and assess how your finances were in 2019. Perhaps there are areas here that can be utilised more to your benefit.

Goals, Goals, Goals:

A new year always comes with new personal goals, and a new decade is the perfect opportunity to set some business and financial goals for your business. What are the daily/weekly/monthly steps you can take over the next 12 months to get your business closer to that end goal? Goals can be an essential method of planning out the future of your business.

Deadlines:

As we have spoken about before, Revenue have been overhauling their tax systems and clamping down on evasion and late filing. As we start this new year, take note of all the essential deadlines for the coming year and begin working towards meeting them.

These are just some small ideas to start this new decade of your business off on a positive and energetic note and start as you mean to go on.

Should you have any concerns or queries on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA. We are looking forward to working with you all during the new roaring 20’s.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

Planning Your Best Exit Strategy

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We have discussed in the past, the importance of having a long-term plan for your business, particularly for when you are no longer in a position to run the company yourself. The importance of an exit strategy or long-term plan can not be overstated for businesses of all sizes, particularly small and medium enterprises (SMEs). It is as always advisable to stay abreast of current issues and changes that may affect the long and short term plans you have in mind for your business and in this vein, there has been some cause for concern in recent days regarding ways that taxation could inhibit future planning.

A new report issued by PwC this week has stated that current tax rules which hit the transfer of family businesses are putting both jobs and companies at large in danger. These rules make options incredibly limited for business owners as they limit owners passing on their business to family members while they are living. Some anomalies to the system in this respect mean that the new business owner could find themselves incurring high tax costs that would potentially place additional pressures on the business and put it at risk.

PwC have given some suggestions on changes they would like implemented in the next budget to protect business owners and entrepreneurs in the event of passing their business on while still living. One such suggestion is the removal of the current cap of €3million on the value of business assets which can benefit from Retirement Relief. There is also calls for the Entrepreneurial Relief Capital Gains Tax threshold to be reduced to allow further relief to these businesses as well as increasing the lifetime limit applicable and reducing current restrictions which may exclude many. It has also been suggested that tax relief options could be made available.

Consultation with the Government for this process is ongoing and submissions will close on May 24th and there are hopes that there will be changes announced in the next Budget to combat this issue and make the family handover of businesses a smoother and more profitable process. The transition of a business is inevitably a stressful and concerning time, so any changes that can be of benefit and ensure the longevity of an existing healthy business should certainly be embraced.

Should you have any queries or concerns on any business or financial matters, please do not hesitate to contact us here at EcovisDCA where we are always happy to help you and your business.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

The Cloud – How it can benefit your Business

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Head in the Cloud

Today sadly brings us to the close of our mini-series of posts on digitising your business activities. We hope this series has been of benefit to you and we hope to be able to bring you more of these small segments in the future. This week our heads are well and truly still in the clouds… or THE CLOUD to be more specific, sure isn’t that where we are all looking to store our data at this point?

We have spoken recently about how a move to Cloud Computing and how this can be of benefit to your business. From ensuring higher security measures than storing files on your computer hard drive or in hard copy, to the general ease of access, there can be no doubting that Cloud Computing appears to be the way forward. Many people do pose the financial question however, will moving to The Cloud save money? The truth is that while it often does, this is not a guarantee but this should not dissuade you as the increased usability of your files will undoubtedly save you time, the second thing we often find ourselves short of.

To assist you with an easy transition to this new way of life, we have gathered the below list of considerations to take into account when creating your new Cloud Strategy:

  • Hardware investment decisions– when hardware is up for refresh it is an ideal time to look at whether you can save money/increase flexibility by moving to the cloud.
  • Connectivity – is there available bandwidth that is reliable and secure to facilitate access to cloud technologies?
  • Application suitability – are your core applications ready for a move to the cloud? Are some more suitable than others? What would your migration roadmap look like if you phase your move?
  • Public versus private cloud – the pace of technology change means that private clouds can easily become defunct or run into performance issues, it can often be as limiting as servers onsite as, you are tied to the decisions made at a moment in time. Public cloud investment from companies like Microsoft means not only migrating to the cloud, but an ongoing cycle of optimisation through advancements in the platform.
  • Core versus context – choosing to migrate to the cloud with a trusted partner means that you can have your internal staff focus on what is core to your business, rather than managing infrastructure, back-ups etc.
  • Risk management – a move to the cloud is an ideal time to review your business continuity arrangements, cloud can open up a degree of redundancy that would be impossible to achieve as a single small/medium organisation.
  • Staff productivity – desktop cloud tools afford staff a greater opportunity to collaborate, offer larger storage capacity and remove the need for inhouse management of servers.

 

We hope this has been of use to you and will assist you in creating the best digital strategy for your business. Thank you to our friends at INNOVATE for being a fountain of knowledge on this topic and for sharing this with us. Should you wish to engage their services for your own Cloud Strategy don’t hesitate to get in touch with them and as always for all other business and financial queries, our door is always open here at Ecovis DCA.

 

The Cloud – How it can benefit your Business

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Up on Cloud Number 9

Following on from last week, we will this week be continuing our series on bringing your business into the digital age, taking you through the basics of Cloud Computing so that we can keep our clients informed. Last week we focused on the definition of Cloud Computing, as well as the ways to take those first hesitant steps into the digital world. This week, we have decided to focus on the ways in which Cloud Computing can ultimately benefit your business. According to digital professionals, the Cloud is not a place, but a business strategy.

As business in general moves into a more digital space, it is of course advisable to endeavour to be

moving with the times, as difficult as this may be for businesses who have not used the digital model in the past. As intimidating as it can be, there are a great many benefits inherent to cloud technology as a business model going forward, and though your board of director’s may not fully understand the concept at first, taking the first steps will lead to incredible rewards.

So how can you begin to convince an uncertain and perhaps slightly outdated board of directors that a move to the digital space is a step in the right direction? To begin with, it is advised to begin building a ‘Cloud Strategy’ as your first port of call, followed by a ‘Migration Plan’ which will enable you to ensure that you will be maximising the potential of the Cloud for your business, as well as identifying any inherent risks and implementing the appropriate security measures to protect your data. To begin the process, the following 4 steps are advised as your first stepping stones to full Cloud Computing.

  • Agree on a migration plan to manage risk and avoid business disruption
  • Identify the costs involved
  • Manage legacy applications
  • Implement appropriate security measures

It is also advised to hire a tried and trusted IT company to oversee these proceedings to ensure the safe transfer of any data and that your Company is utilising the capabilities of the Cloud to full effect.

We hope that this series on Cloud Computing is of benefit to you and your company and, as always, should you require any assistance or guideance on any business or financial matters, we here at EcovisDCA are always happy to help.

What is this Cloud they speak of?

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There has been quite a lot of negativity making the headlines in recent months. At times the business world can seem filled with lists of what not to do with very little useable advice for anyone without immediate access to a time machine. Alongside this, constant changes to the day to day functioning of a business, with an emphasis on moving towards a more digital focus can create confusion when trying to merge with a standard business model. With this in mind, we have decided to bring you some vital information and advice on how to navigate the digital aspects of the business world.

One of the terms we hear over and over these days is “The Cloud”, everyone wanting to know what we have uploaded or backed up to “The Cloud” can often raise the wrong images for those not familiar with the terminology so over the next couple of weeks we will be going into detail about how “The Cloud” can benefit you and your business.

In simple terms, utilising the Cloud or ‘Cloud Computing’ essentially means the storing and accessing of date over the Internet instead of on your computer’s hard drive. The Cloud itself is a network of servers, each one serving a different function. When looking to solve any problem, be it personal or business, we tend to reach out to our support network and in this way the Cloud is no different, acting as another support structure for you and your business.

According to professionals in the area, the below are some of the first stepping stones for getting your business onto the road of Cloud Computing. It could not be simpler to get your business moving into the digital age with ease:

  • Evaluate if a move to the cloud is right for your business
  • Learn how to build a cloud strategy plan that supports your business goals
  • Understand cloud investment models
  • How to optimise your existing cloud infrastructure
  • How to increase the reliability and flexibility of your IT infrastructure
  • Understand how cloud solutions can extend additional services to your customers and open new business opportunities
  • Which cloud-delivered security solutions offer the best protection against modern security threats
  • How cloud solutions can support your business continuity plans
  • Practical steps to moving to the cloud, how to avoid business disruption, migration plans and piloting workloads

Should you feel that this would be a step in the right direction for your business, we would advise holding a training event for your staff to ensure everyone is aware of this new approach being taken.

Should you have any queries or require further information on this or any other business or financial matter please don’t hesitate to contact us here at EcovisDCA’s new head office, where as always we will be delighted to help.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

If you Own It Then You Need to Put Your Name On It (All The Beneficial Owners)

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As of the 15th of November 2016, all Irish business owners or part-owners are required to create and maintain a list of the beneficial owners of the aforementioned business. This new order is in accordance with Statutory Instrument 560 of 2016. The new rule applies to all Irish companies, partnerships and all business entities whether publically listed or not.

A beneficial owner is defined as being a person who currently holds more than 25% of a business either directly or indirectly. This is a legal term wherein specific property rights belong to a person even when legal title of the property belongs to another person. Therefore even if you are not publically an owner of the business, if you hold more than 25% you will be required to be listed on this new document, the register of beneficial owners for the company.

 

The register of beneficial owners for the company must include for all parties:

  • Full Name
  • Date of Birth
  • Nationality
  • Residential Address
  • Nature and extent of interest and involvement with the company
  • Date entered into or removed from the register.

 

This new requirement will naturally take some time to implement accordingly, and we would advise all companies to ensure that this register is kept fully up to date with leaving and entering dates etc. to ensure that no issues arise in the future as a result of incomplete information.

 

It is also advised that the company issue letters to all those viewed as beneficial owners to inform them of this new register and to request the required information. It is essential to have a record of all endeavours to identify all beneficial owners and should they still be impossible to identify, the names of the directors and CEO must be entered on the Register.

The CRO will create a central register by the middle of 2017 so it is essential that all beneficial owners are reported to them before this time.

It is heavily advised that this be put in place as soon as possible as failure to comply can result in a fine of up to €5,000 being applicable to your business.

 

Should you have any concerns, queries or require further information on these or any other business and financial matters please don’t hesitate to contact us we are always available to help.

 

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

Voluntary Strike off VS Liquidation

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Unfortunately, it is not always prudent or financially viable to keep your business going. To assist you if this is the case, we will today be discussing two ways in which your company can be formally closed down. We will be focusing on Voluntary Company Strike Off and Members Voluntary Liquidation – two very different processes which should not be confused. Rather than incurring the on-going costs of continuing to file annual returns, you can choose to either liquidate or strike the company off. It is inadvisable to simply abandon your company as this can incur ongoing costs as well as causing legal trouble down the line.

Voluntary Company Strike off is the process wherein a company is formally de-registered from the Register of Companies and the Revenue Commissioner. The liquidation process involves the appointment of a liquidator to collect and assign any existing assets.

Voluntary Strike Off is often seen as a quicker and more cost effective option than liquidation. This option is available to companies which have had little or no activity and have no more than €150 in assets or liabilities. Voluntary Strike Off leaves an option to restore the business open for a period of 20 years following the date of dissolution.

Members Voluntary Liquidation is the alternative option for companies which have had activity and remain solvent at the time of cessation. Members Voluntary Liquidation is often seen as the more correct way to dispose of a company as it is not possible to resurrect the company after liquidation.

Voluntary Strike Off is also a cheaper option than Members Voluntary Liquidation despite its inherent lack of finality,

If you require any further information on either Voluntary Strike Off or Members Voluntary Liquidation or indeed any business or financial matters please don’t hesitate to contact us. We are always happy to help.

 

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

2016 – A NEW YEAR OF BUSINESS

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Hello again and a very Happy New Year to all of you from us here at DCA Accountants. The foggy haze of a holiday season well spent may not have fully lifted just yet and this month may see all of our wallets a little lighter. To combat this, we have compiled a list of some handy tips to increase cash flow for you and your business and start 2016 off on the right foot.

Budget Budget Budget

No, we don’t mean another governmental offering, lay down the pitchforks, rather a budget for both your business and your own income. It may seem basic to suggest setting out a budget for your business as there has probably been a general one in place for years. However, when entering a new year we would advise setting out an immediate new budget to ensure that you have a clear idea for your finances and where you want them and your business in general to be for the year ahead. On a more personal level, it is advisable to map out exactly what your monthly income is and make a note of the absolutely essential outgoings. From there you will be able to add on the less crucial expenditures and have an idea of how much it will be possible to save each month.

Pay up

The easiest way to keep track of both personal and business finances is to ensure that bills are paid as soon as possible, rather than waiting until the last minute deadline. This will prevent you from overspending as the cash will already have been spent, rather than existing in a limbo of “to be spent” where the temptation to dip in can be strong. In business, you should always set clear and attainable payment terms with all suppliers to avoid confusion.

Be Flexible

Yoga might have played a part in your New Year’s resolutions so keep up the good work, but here we do not mean flexible in the physical sense. In both personal and business finances there will always be unforeseen expenses that creep up and threaten to derail your budgeting. The key when these issues arise is to be flexible and accept that this expense must be paid, but it doesn’t need to be the end of your savings. As much as it is tempting to derail a healthy eating plan after a day of indulgence, it is incredibly easy to allow your finances to become confused after unexpected expenses. Instead of allowing this to happen, a clear budget should allow you to figure out a way to get your savings and finances back on track.

Keep in Touch

In business, it is advisable to keep regular contact with your accountant and bank so that you are at all times aware and knowledgeable about the cash flow of your business. This contact will also assist you in identifying areas of concern early on to help avoid any issues.

We hope that these simple tips will assist you going into the New Year and that 2016 will be a successful year for you and your business. As always, should you have any concerns or queries please contact us at DCA

CREDIT CARD INFORMATION AND TAX EVASION

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It was reported earlier this month that the Revenue were to begin targeting credit card transactions as a way of uncovering tax evasion. This new endeavour came to light after it was revealed that over 2000 Irish companies had made payments to the Revenue Commissioners after failing to declare tax in full.

The Revenue Commissioners say that the practise of examining credit and debit card data to investigate tax payments is now active. The information is being released by merchant acquirer firms. These firms process credit card payments on behalf of the merchant you purchase from. Their data will then be compared to the data submitted by the individual or business in order to assess any issues or differences. Any discrepancies found would be flagged as a potential risk of evasion, to be given a closer look.

How is this information being released, you may ask? Legislation enacted two years ago states that these merchants are obliged to divulge information on transactions over a certain threshold. The Revenue are currently making an attempt to ramp up its digital focus as concerns grow regarding the easier tax evasion in this area.

The general idea here, is to ensure that The Revenue Commissioners have all the information they possibly can, in order to assess effectively. In order to do this, As the Revenue Commissioners have now increased their digital focus, they are now engaging new teams in the advanced analytics area. This process utilises a wealth of digital resources in order to flag potential tax evasion.

Declan Rigney, assistant secretary in the Revenue’s planning division has stated that the information has been of great benefit to their research into potential evaders:

“We are able to match information up with our records and see firstly, do we know about them, and secondly, have they registered with us and have they declared income and so on. After that, we can examine if that cumulative figure for the year matches what they have told us in their income tax or corporation tax returns”

Revenue have now stated that their advanced software, known as the Risk Evaluation Analysis and Profiling (REAP) system – (which sounds a lot more violent than it is we promise), can now accurately predict whether someone is potentially evading tax payments or not. This system can also compare cases in order to highlight potential issues that may otherwise have gone unnoticed.

So, it would seem that the ‘Tax Man’ has now well and truly entered the modern age, and with all this technology at the Revenue’s disposal it hopes to ensure that tax evasion becomes a thing of the past.

If you require any assistance or advice on managing your own or your businesses taxes and finances, please don’t hesitate to contact us at DCA Accountants.