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The Climate Action Fund – A New Grant Available

Save the Planet – It’s the only one with Chocolate

Whilst Irish business can often be a stressful place to be in the current environment, there has been a lot of movement in the right direction during Ireland’s economic recovery and we have spoken in the past about new layers of support being put in place for SMEs (Small and Medium Enterprises) which remain the backbone of Irish business. From new funding opportunities to new investment opportunities Ireland is fast becoming the ideal place to do business, with some suggesting that Brexit may in fact be beneficial to Ireland’s business standings worldwide. We have spoken in the past about a number of available grants and today we will discuss one which we feel may be of particular benefit to our clients.

In our modern age it has become increasingly apparent that each individual must make strides to make our planet a more sustainable place to live. Often there is very little incentive to engage in such a costly process with the return of investment being a very long term process. Now however, for the first time not merely exclusive to SMEs there is a grant available that will help you make your business more eco-friendly without leaving a massive hole in your pocket.

The Climate Action Fund is part of the National Development plan which promises to change Ireland for the better by 2027, and will offer support to those businesses which assist the country in reaching its climate and energy targets. The purpose of the grants given will be to fund projects which would otherwise not be possible to complete. The fund will have an allocation of at least €500million leading up to 2027. The first call for applications to this fund will deal with larger scale projects scheduled for development in 2019-2020, which seek support in excess of €1million. Should you feel that your company may benefit from this, there is a rather small window of opportunity as the applications will be open from September 17th until October 1st so it would be imperative that you gather all required information and begin the process of collating this and having a project plan in place in advance of the application call opening.

The funding will be available to a wide range of projects which serve the greater interest of Ireland’s eco-awareness including:

  • Renewable Energy Projects.
  • Heating Projects.
  • Electrical Vehicle Charging Projects.
  • Environmental Protection Projects.
  • Energy Efficiency Projects.

This is of course only the first call for applications, there will be more over the course of the project and undoubtedly these will apply to a wide range of businesses and serve varied functions so if this first call does not apply to your company, we would advise keeping a close eye on the scheme for the next series of calls for applications.

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 PARTNERSDECLAN DOLAN & EAMONN GARVEY

SME’s The Backbone Of The Irish Economy

Let’s hear it for the Little Guy

As you all know, we here at EcovisDCA are big supporters of small businesses, new start-ups and SMEs (Small and Medium Enterprises) and we have spoken many times in the past about new and interesting funding opportunities becoming available for these kinds of businesses. We have also spoken in the past about the way in which SMEs can be said to form the backbone of the Irish business world as in reality they form over half of all Irish Businesses. The shows the absolute vital importance of keeping these types of enterprises up and running in Ireland.

This week there has been good news for Irish SMEs as figures compiled by business and credit risk analyst Vision-net show that 2017 was the best ever year for the formation of new start-ups in Ireland. This is not only good news for our business world, but it shows a new and growing level of confidence in doing business in Ireland which can only mean good things going forward for our small island with big dreams.

These figures showed that a total of 22,354 companies were set up in 2017, which is a marked increase on previous years which barely surpassed 20,000 in 2016, the first time these figures have been seen since the late 90’s. Managing Director of Vision-net, Christine Cullen has been quoted as saying that the results are a

“Clear sign of a buoyant economy. Despite the continued uncertainty surrounding Brexit and the Border, the national business community has remained productive and innovative. Ireland is an attractive place to set up and do business, for indigenous and foreign companies alike”.

Unsurprisingly, Dublin was the strongest county for new start-ups, with professional services and finance businesses compiling the greatest share of these new businesses. It was also found that the construction industry continues its ongoing recovery and that there is a burgeoning sense of confidence in these industries that was previously unseen. This means that there is money being leant into these businesses which was not available to them before.

As always, it is important not to let good news let us become complacent, as Cullen states:

“There are important factors to consider. As Ireland approaches full employment, it’s likely that the impressive year-on-year growth that we have seen since the end of the recession will slow. Brexit, too, remains a largely unknown quantity. Its effects on the economy will likely not be felt for several years”.

Whilst this shows positive movement, we do of course have further to go and as always we here at EcovisDCA are always available to help with any new business or finance queries you may have. Please don’t hesitate to get in touch.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Little Fish in a Big Pond

As you no doubt are aware by now, we here at EcovisDCA are big supporters of Small and Medium Enterprises (SME’s). We have spoken at length in the past about the challenges faced by these types of businesses as well as the opportunities for growth and investment surrounding them. This week, we are focusing on the bigger picture for SMEs in Europe.

Data released from Eurostat, the European Union’s statistical office this week revealed that SMEs actually generate half the value of the intra-EU trade in goods. Whilst we have long known that SMEs form the backbone of the Irish economy, we now see that they are beginning to form the cornerstone of trade within the European Union also. SMEs in counties such as Latvia, Cyprus, Estonia and the Netherlands fly the flag for European SMEs as they are understood to have generated in excess of two thirds of intra-EU goods exports.

These new findings show that 98% of companies trading goods within the EU are SMEs, and that 70% of these companies are micro-enterprises. Small and Medium Enterprises are defined within the European Union as being non-subsidiary, independent firms which employ fewer than 250 employees, whilst micro-enterprises are defined as being businesses operating on a much smaller scale, with fewer than 9 employees.

Whilst we know that SMEs account for more than half of all Irish business, this new data shows that there is massive room for improvement for Irish SMEs within the larger European Union market. Irish SMEs account for less than one third of the intra-EU exports which given our size compared to larger countries may be understandable, but does allow for more expansion of Irish SMEs into this marketplace.

With Irish Small and Medium Enterprises now having greater access to a wider number of funding options than were available previously, there is now more opportunity for Irish SMEs to take to the World Stage. As always, we root for the underdogs here in Ireland!

Should you require any assistance or guidance on any financial or business matters, please don’t hesitate to get in touch with us here at EcovisDCA where we will be delighted to be of service.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Looking at the Big Picture for SMEs

As you know, we here at EcovisDCA are massive supporters of the SME (Small and Medium Enterprises) community in Ireland. The businesses were some of the hardest hit by the economic downturn, and remain affected despite continued recovery. Funding for SMEs has been relatively slow to make a return to the market and in recent weeks we have discussed some new options coming to the market for these types of business. This week, we return with even more good news in the SME market.

The ISIF (Ireland Strategic Investment Fund), an economic stimulus vehicle is set to join forces with AIB and Bank of Ireland as a backer for a new investment fund targeting Irish SMEs. This venture will be managed by BGF, a private UK company with a wealth of British lenders at its disposal. This UK-based company will now have an Irish branch for this purpose and will have a dedicated Irish team based in Dublin.

The idea behind this investment endeavour is to allow Irish SMEs access to a longer term funding and investment than would be ordinarily available, whilst also giving managers access to expertise from their investor. This will allow these companies to expand and scale up their operations whilst having the financial back up, and advice on hand.

Investments will initially be available of between €2m and €10m in exchange for minority stake in the business in question, it is planned that additional funding will then be available from the investing company. Qualifying businesses will have revenues between €5m and €100m per year.

Should you require any help or guidance on any small, medium, or indeed large enterprise, please don’t hesitate to get in touch with us here at Ecovis DCA where we will be happy to help.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

High Risk, High Reward

We have spoken at length in the past about the importance of SMEs (Small and Medium Enterprises) are to the Irish economy. SMEs alone currently comprise over half of all Irish businesses, and have come to form the backbone of the ongoing economic recovery. As such, it has become increasingly important to protect and encourage these kinds of businesses.

In recent months we have seen the beginnings of a welcome change in the availability and range of funding and assistance options for SMEs which has shown a real shift in focus towards taking note of the importance of our Small and Medium Enterprises as well as our entrepreneurs.

Something which is rarely focused on is support for the financial backers of these seemingly higher risk enterprises and companies. The Government have created a scheme to act as an incentive for such financial backers called the Enterprise Investment Scheme. This scheme allows qualifying companies access to investment from shareholders, and in turn offers these shareholders tax breaks as incentive.

The purpose of the scheme is to assist some small and higher risk SMEs to raise capital where this may ordinarily be difficult or almost impossible. This will help to reduce the amount of SMEs forced to wind down due to a lack of financial investment.

It is hoped that this scheme will encourage investors to back what may be perceived as higher risk companies, in order to act as a buffer for these companies and increase their chance of continued survival. As these would be a higher risk investment, there are of course a number of enterprises which do not qualify, these are as follows:

Land shares, goods (except normal retail etc.), financial, legal and accountancy, property development, hotels and nursing homes, agriculture and power, etc.

There is also a time limit of two years applied during which the invested capital must be utilised and the investor must never have been previously connected with the business prior to investment.

Companies wishing to avail of this scheme must be EII certified and must directly seek certification from the Revenue Commissioners.

As always we are available for any advice or guidance you may require on business or finance matters.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Hope for the Best, Prepare for the Worst

Enterprise Ireland are endeavouring to ensure that Irish businesses are prepared for any eventuality during the Brexit transition. Their advice, and ours is to ensure that you are well prepared and have planned for these changes in advance. We all think we know our company and our business inside and out but with so much change on the horizon it is essential that you understand how your business will respond to any outcome.

Enterprise Ireland have created a free tool to ensure that you and your business are prepared and informed ahead of Brexit. The Enterprise Ireland SME Scorecard is a tool which will help any exporters from Ireland to the UK plan in advance and will give a detailed analysis of how prepared your business is for Brexit. Whilst you may know the ins and outs of your daily business well, this tool will allow you a glimpse into the future of how your business will respond to these coming changes.

The following six areas have been identified as the most important areas to prepare in advance of Brexit.

  • Business Strategy is essential in all areas of business, but in particular when change looms on the horizon it is essential to have a strategy in place and identify any areas of weakness in advance.
  • Operations relates to the day to day running of your business and it is vital to prepare for how this might change or if there are any existing issues that need to be modified.
  • Innovation is one of the main ways that Irish businesses can capitalise on the changes ahead with Brexit as improved services and innovative products can identify Ireland as a key player in the times ahead.
  • Sales and Marketing have always been a key aspect of business, and with Brexit these will become increasingly important in order to set your business apart to offset any downfall.
  • Finance is the backbone of any business so it is essential to assess your businesses financial strengths and weaknesses before Brexit comes into play to identify potential problems before they occur.
  • People Management has been identified as a key area to assess before Brexit as with such major changes ahead your team will be the ones at the battlefront.

As well as this free scorecard tool, Enterprise Ireland are allowing SMEs apply for a grant of up to €5000 to be used to prepare for Brexit and the changes it will bring. This will free up other cash flow to be used to otherwise further your business whilst the grant is used to buffer any weaker areas identified through the scorecard tool.

As always we are available for any advice or guidance you may require on business or finance matters.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Business, Size Matters

We are constantly reiterating the importance of Small and Medium Enterprises (SMEs) to the Irish economy, and with good reason. SMEs make up over half of all Irish business and have begun to form the backbone of our economy in recent years. Unfortunately SMEs are also often the most difficult businesses to get off the ground and keep running in the current changing economic climate. This is why our recent newsletter focus has been largely targeted to providing information on newly available funding and assistance for these vital businesses. Today we will be discussing the new Companies (Accounting) Act of 2017 and what this means for SMEs.

The Companies (Accounting) Act 2017 was brought into effect as of Friday, June 9th 2017. According to the Department of Jobs, Enterprise and Innovation this new act may free up some much needed time for SMEs as it should reduce their financial reporting obligations allowing this time to be used to further the business in other ways.

Importantly and interestingly for owners of small businesses, this Act is due to create significant changes to the creation of what is known as a ‘Micro Company’. In order to be classified as a Micro Company, a business must not have a turnover exceeding €700,000, a balance sheet exceeding €350,000 or average employee numbers exceeding 10. In return, being classified as a Micro Company offers the company a number of benefits including there being no obligation to file a director’s report and exemptions from disclosing director’s remuneration.

Some companies previously defined as Medium may under this act be redefined as Small whilst some companies previously defined as small may be redefined as Micro due to a change in the thresholds for qualification for these categories. In addition, any companies which are redefined as Small Businesses will need only file abridged financial statements, provided their turnover does not exceed €12million, their balance sheet does not exceed €6million and their average number of employees does not exceed 50.

It is possible that conversely, some Medium and Large companies may find themselves with a greater level of financial reporting than previous under these new thresholds so we would heavily advise studying the changes this act poses in detail and knowing the new status of your business thoroughly as well as the new financial reporting requirements associated with this definition.

Should you require any further information, guidance or assistance on these or any other business or financial issues please don’t hesitate to get in touch with us here at EcovisDCA where we are always happy to be of assistance.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Score One for SMEs

For the past few months, the term Brexit has acted as somewhat of a Bogeyman figure looming over many Irish business as the haze of uncertainty for what a British exit from the European Union would mean for Irish borders and trade with the UK, on which many companies rely. Perhaps the most concerning idea for Irish businesses would be what this would mean for Irish Small and Medium Enterprises (SMEs). We have spoken at length in the past about how important the SME sector is in Irish business, forming the backbone of our economy, and how vital it is to protect these types of businesses in changing times. Many Irish SMEs rely on business with the United Kingdom and so a cloud of uncertainty and insecurity has plagued the sector in recent months.

 

Recently, we have spoken about new funding opportunities coming to light for SMEs and this week it appears that the future may be beginning to look even brighter for these vital enterprises. The Minister for Employment and Small Business Pat Breen has urged SMEs and micro businesses to turn to their Local Enterprise Offices (LEO) for information about a range of supports now available to them. A newly announces suite of Brexit supports is now available to SMEs and microbusinesses through their Local Enterprise Offices which include

  • Access to the ‘Brexit SME Scorecard’ online tool where micro and smaller businesses can self-diagnose their readiness for Brexit – A vital planning tool which may assist many small businesses.
  • A ‘Technical Assistance for Micro-enterprises’ grant to help LEO clients to find new markets and exports.
  • Rollout of ‘Lean for Micro’ nationwide which will make small businesses more efficient and competitive.
  • A ‘LEO Innovation and Investment Fund’ pilot programme to support innovation in micro-enterprises and get them investor ready to scale their businesses.
  • Tailored mentoring to address Brexit related business challenges.
  • Training on specific Brexit challenges, including financial aspects.

As you can see from this list, these supports are specifically aimed at providing information and a framework of support and guidance for these businesses to utilise when navigating the uncertain times ahead. Minister Breen was quoted as saying of the support:

“I am delighted to announce this suite of important Brexit supports which will be available for small and medium enterprises. It is imperative that micro and small businesses have the tools and supports needed to navigate through what is uncharted territory. This is part of the Government’s Brexit planning and I am very pleased that my Department through Enterprise Ireland has been able to accelerate the rollout of these new LEO offerings worth up to €3.4 million, and I urge small and micro business owners to get in touch with their LEO to see how they can help.” 

These supports focus heavily on planning ahead which will be vital in the coming months for all businesses. Should you require further information, guidance or assistance please give us a call.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Are you Talkin’ to SME?

We have spoken in the past about the dearth of financing options for Small and Medium Enterprises in Ireland following the recession. Recently, there seems to be a push towards recognising the importance of SMEs as the backbone of our economy and as such, the need for available funding to ensure their continued success.

One such form of funding of which Ireland has seen very little in recent years is ‘Peer to Peer’ (P2P) lending. The term might bring flashbacks of desperately attempting to download your favourite songs on a dial-up connection but rest assured this is a far more functional process. Peer to Peer lending is now one of the most popular methods of funding a business or idea (think Kickstarter, IndieGoGo etc. these options are also known as ‘crowdfunding’). The process allows ordinary individuals with cash to invest be ‘matched’ with a business seeking finance. The entire process is done online which reduces overhead costs and generally makes for a smoother and cheaper lending process for both parties.

One such Irish Peer-to-Peer lender, Linked Finance has recently received full authorisation by the UK’s Financial Conduct Authority (FCA) to allow the company to enter into the UK Market. Linked Finance’s CEO Niall Dorrian was quoted as saying the following about the authorisation:

“I am very pleased that we have secured full FCA approval. It puts us ahead of the curve in terms of preparing for any regulation of the sector in Ireland. It also demonstrates to lenders and borrowers here at home that Linked Finance operates to the highest standards.”

The authorisation is well timed for Linked Finance as our own Department of Finance has initiated a public consultation process with the view of imposing some regulations on Peer-to-Peer lending in Ireland, aiming to make this a safer process for all parties. The UK already has a comprehensive regulatory procedure with regard to P2P lending, and it is thought that Irish practises will begin to follow suit as P2P lending grows in popularity here. The UK also already has many options in place for funding SMEs which Ireland may eventually follow suit on given that these enterprises make up such a large chunk of our business.

Linked Finance have already facilitated more than €25m in loans to Irish SMEs and it is hoped that in the future there will be a marked increase in lending options for SMEs as they continue to be the backbone of our economy. Linked Finance in particular hope that any kind of regulation will be a help to the sector rather than a hindrance as CEO Dorrian has said:

“Any regulation of the sector in Ireland should seek to encourage, rather than inhibit, further diversification within the financial landscape.”

For now, at least, times seem to be changing positively for Irish SMEs and long may this last.

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 PARTNERSDECLAN DOLAN & EAMONN GARVEY

FUNDING THE WAY IN THE DARK

Following the economic downturn, one of the largest business groups to suffer were Small and Medium Enterprises (SMEs). A key component of these types of businesses is often their reliance on funding options and flexible payment terms in order to gain and keep a decent foothold in their area of business. Following the Irish economic crisis, many SMEs were unable to continue their operations due to a reduced availability of finance options. This lack of financing availability also meant that many start-ups were unable to get off the ground during this time.

 

 

Now that the Irish financial situation is apparently on the up, there has been an increased focus by funders and the government on entrepreneurship and SMEs. This is a fantastic starting point and is largely due to the fact that these types of businesses make up for over half of all Irish businesses, and have become somewhat of a backbone for Irish businesses. Recently, it has been reported that more funding options will soon be returning to the Irish market targeting SMEs in particular.

The welcome news recently for Irish SMEs is that one such form of financing which disappeared is set to make a comeback to the Irish market. Supplier Finance is now once again an available option in Ireland, offering financially secure Irish SMEs this method of paying key suppliers whilst accessing previously unavailable cash flow. Supplier Finance is said to be an ideal additional top-up for companies who have hit their banking limit as it will not interfere with any already existing funding plans.

Also known as supply chain finance optimises cash flow by allowing businesses to extend payment terms to suppliers whilst ensuring that suppliers are paid in full. This creates an optimal environment for both buyer and supplier. The additional benefit of this form of finance which lead to its popularity during boom times was that it allows the supplier access to additional cash flow that would otherwise be tied up elsewhere and minimises the risk of financial issues elsewhere in the payment chain.

 

 

Supplier finance is different to other finance options in that it is not a loan, but rather an extension of the accounts and is not considered to be a debt, suppliers receive full payment for their products. This makes supplier financing a very attractive option for a great many financially stable Irish SMEs.

Financially secure companies who have not been suitable for options such as Invoice Finance will be able to avail of this funding option which will be a welcome change for those in difficult to fund sectors.

Should you require any more information, advice or guidance on these or any other business or financial issues, please do not hesitate to contact us here at DCA Accountants where we will be happy to be of service.

 

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY