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Alternative Lending

Flender

Flender Ireland  is a Peer to Peer Lender for small and medium sized business. It is authorised by the UK Financial Conduct Authority. Flender offer the  following products:

 

Term Loans

Flender offers businesses access to fast funding up to €300,000. Get a credit decision within 6 hours and receive funds within 24 hours. Terms range from 6 to 36 months, with rates starting as low as 6.45%.

In order to apply for a term loan companies / sole traders need:

  • Completed Application form
  • Last 2 years Filed Accounts – Unabridged version with P & L and Balance Sheet
  • Last 2 years Revenue Filed Form 11s (if sole trader)
  • Up to date Management accounts if available
  • Last 6 months bank statements
  • Up to date tax cert – (Tax Ref Number & Access Number ID)

Applications are made on line at : https://www.flender.ie/users/registration/borrower

 

Merchant Cash Advance

Online merchants and other businesses that conduct a majority of their sales online are prime candidates for our MCA product. Since businesses of this nature receive payment primarily via credit card purchases, the monthly payment amount is less when a business is making less revenue and increases when the business makes more revenue. If you earn revenue via check or cash, an MCA probably isn’t right for you.

 

  • Works with natural trade cycles – ideal for retail, hospitality and service businesses
  • Repayments made daily as a small percentage of card terminal revenues
  • Lump sum funding from €10,000 to €250,000
  • Terms from 3 to 12 months
  • Repayments made directly through merchant card processors

 

For further information please contact:

Ecovis DCA

Stephen Connolly – Stephen.connolly@ecovis.ie

Dennis Duffy  – dennis.duffy@ecovis.ie

 

Flender

Colin Canny  – colin.canny@flender.ie

 

Linked Finance

Covid 19 Emergency Loan Product

Linked Finance has launched a Deferred Start Loan for businesses affected by the Covid-19 pandemic. It means businesses can get access to working capital now, with the reassurance of no repayments for the first 3 months.

After the first 3 months payment-free, the loan is then repaid over a 12 month period.

Loans are available up to €100,000 to businesses that are trading for at least 2 years and have a (pre-crisis) annual turnover in excess of €100,000. As with their standard loans, the application process is very simple, just three standard documents, no projections and a credit decision will be given in 24 hours

Any established and creditworthy business, whether it is a limited company, sole trader or business partnership, can apply for a loan on Linked Finance.

In order to apply for this facility companies / sole traders will need:

  • Last 6 full calendar months bank statements i.e. Sept 1st to Feb 29th.
  • Proof of overdraft (IF ANY) Even online screen-print is fine
  • Latest full set of accounts to include Admin Expenses breakdown

Some conditions apply. These include:

  • If you are a sole trader, you must be a permanent resident of Ireland.
  • If your business is a partnership, it must have a permanent place of business in Ireland and at least half of its partners must be permanent residents of Ireland.
  • If your business is a limited company, it must be registered with the Companies Registration Office (CRO).
  • It must have filed accounts with the CRO (if required to do so) at least once and at least half of its directors must be Irish residents.
  • Your business must have been actively trading for at least the past two years.
  • Your business must meet our minimum credit risk and fraud criteria.
  • Your business must not have any outstanding judgements for more than €250.
  • In special circumstances, we can support younger companies who have demonstrated strong growth potential over a shorter trading history but this is at Linked Finance’s sole discretion.

For further information please contact

Ecovis DCA

Stephen Connolly – Stephen.connolly@ecovis.ie

Dennis Duffy  – dennis.duffy@ecovis.ie

Linked Finance

Mark Lindsey – mark@linkedfinance.com

Covid 19 – Update on Social Welfare supports for Employees and Employers

  • Social Welfare measures for Employees & the Self Employed
  • Process for Employers for keeping staff on the Payroll
  • The process for Refunds to Employers who engage with the scheme

COVID 19 – Pandemic Unemployment Payment

If you have lost work due to a downturn in economic activity caused by COVID-19 you can apply for the new  COVID 19 – Pandemic Unemployment Payment at this link – https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/

This new payment quickly delivers income support to the unemployed (be they self-employed or employees) for a 6-week period.

It is designed to provide income security for a period during which you can apply for a full Jobseekers payment (and receive any additional entitlements backdated).

You can apply for the Pandemic Unemployment Payment by filling in a one page application at the link above and returning to PO BOX 12896, Dublin 1. by FREEPOST. You do not need to visit an Intreo Centre to apply.

 

How to Qualify

Both employees and self-employed people can apply for the new COVID-19 Pandemic Unemployment Payment.

You can apply for the payment if you:

  • Are aged between 18 and 66 years AND
  • You have lost employment due to the COVID-19 (Coronavirus) pandemic
  • And it also includes people who have been put on part-time or casual work.
  • Students who have lost employment can also apply.

The COVID-19 Pandemic Unemployment Payment is paid at a flat rate of €203 per week for 6 weeks. It is equivalent to the jobseeker payment rate.

If you are getting another social welfare payment and you have lost your employment, it can be paid in addition to this.

 

Employers – Keeping Staff & Refunds

Revenue has worked closely with Department of Employment Affairs and Social Protection (DEASP) to provide an option for employers to make this payment to their employees through the normal payroll process. The amounts paid to employees under the scheme are not subject to tax, USC or PRSI.

Employers are encouraged to facilitate employees by operating the scheme. The amounts paid to employees and notified to Revenue will then be transferred into the employer’s bank account by Revenue.

This reimbursement will, in general, be made on a ‘next day’ basis. It will ensure a speedy payment process for employees and minimise the hardship for employees who are temporarily laid off. Refunds of income tax or USC that an employee may be entitled to because of being laid off will also be administered by the employer and will be repaid (to the employer) through the scheme.

The scheme can be operated for all employees for whom a payroll submission was made by the employer in the period from 1 February 2020 to 15 March 2020. Where employees have already been laid off and their employer has ceased their employment, they can apply directly to DEASP for the payment.

 

Who does the scheme apply to?

  • Employers who have temporarily laid off staff as a result of the impact on their business of the COVID-19 (Coronavirus) pandemic
  • Employers that keep their staff on payroll and have not ceased the employee(s) with Revenue
  • Employees for whom a payroll submission was made by the employer in the period from 1 February 2020 to 15 March 2020
  • Employers that are unable to make top-up payments over and above the emergency payment of €203 per week.

Making an application for the Refund Scheme

Employers, or their agents, apply to Revenue to operate the scheme by carrying out the following steps:

Log on to ROS myEnquiries and select the category Employer COVID -19 Refund Scheme’.

Read the declaration and press the ‘Submit’ button.

Log on to ROS and in ‘Manage bank accounts’, ‘Manage EFT’, ensure that the bank account details provided are correct.

 

Key features of the scheme

The employer will make the payroll submission to Revenue on or before each pay date.

Employers should contact their payroll software providers for assistance in respect of payroll to be processed under this scheme.

The employer runs the payroll as normal, entering the following details for each relevant employee:

 

PRSI Class set to J9

A pay amount of €0.01 (there must be some pay entered for the payroll to run).

A non-taxable amount of €203. No other payment amounts are made by the employer to the employee and all temporarily laid off employees are granted the €203.

The payroll submission must include pay frequency and period number.

No other payments are made by the employer to the employee for the applicable week(s) and all temporarily laid off employees receive the €203 per week.

Income tax, USC and PRSI are not deducted from the €203 payment.

Any Income Tax and USC refunds that arise as a result of the application of tax credits and rate bands can be repaid by the employer and this amount will also be refunded to the employer.

The employee must confirm to the employer that they have not, and will not, claim a payment from DEASP whilst the employer makes this payment through the payroll.

Employers will be asked to advise employees to make a Jobseeker’s Benefit claim via the MyWelfare.ie online portal (so that the employee(s) can access qualified dependant payments if appropriate).

Based on the information provided in payroll submissions, Revenue will credit €203 per employee per week to the employer’s bank account recorded in ROS.  The credit will include the reference COVID Employer Refund. (The main identifiers include Employer Number Gross Pay of €0.01, J9 PRSI class, Pay Frequency and Employee PPSN, Employment ID).

Revenue will credit the employer bank account for payroll submissions received before 2:00 PM each day.  Depending on the individual bank, the refund should be with the employer on the next banking day.

If the employee(s) resume employment with the employer, or obtains other supports from DEASP, or secures employment elsewhere, the employer will not include the employee(s) concerned in future submissions.

 

Guidance/Information

For general issues relating to the Scheme, employers should contact Revenue’s National Employer Helpdesk via the myEnquiries system, providing details of the query and a direct dial contact number.

Employers should make sure to select ‘Employer’s PAYE’ and then ‘Employer’s PAYE General Enquiry’ when submitting the query through myEnquiries.

 

Local Enterprise Offices Support For SME’s

As discussed last week, the general outlook in Ireland for start-ups and SMEs (Small and Medium Enterprises) has begun to brighten considerably in recent years with the addition of new funding options and the acceptance of these forms of businesses as being a large and important part of Irish business in the modern age.

This week, it was revealed that start-ups and small businesses have also begun to form a large part of the Irish employment recovery as it was revealed that 3,700 jobs were created last year by these types of businesses, backed by their LEOs (Local Enterprise Offices). These offices are seldom the focus of much spotlight, but are often the key to getting a small business off the ground and keeping it running.

Local Enterprise Offices are run by Enterprise Ireland and specialise in assisting these vital small businesses in Ireland in a multitude of ways, from offering advice, information and guidance to creating a calendar of important news, publications and events for these business owners to be aware of. This provision is of vital importance to these smaller companies which may not otherwise find the support they so badly need to get off the ground. Minister for Trade Pat Breen has been quoted as saying of the offices:

“In a challenging environment, LEO clients have contributed substantially to economic development up and down the country, especially outside of the main urban centres.”

There are 31 LEO nationwide, each providing a wealth of essential services to the start-ups and SMEs in the locality. It was also reported that more than 80 small businesses progressed from LEOs into the Enterprise Ireland portfolio in 2017, meaning that these businesses crossed the threshold into viable businesses with the assistance of their LEOs.

Things appear to be looking up for small businesses in Ireland, and with the support of vital structures like the LEOs we may see a great many more new start-ups and SMEs get their big break on Irish soil.

Should you require any help, advice 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 happy to support you in getting your business to the next level.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY