BoI offers unsecured loans to start-up firms
Saturday May 06 2006
The bank is offering start-up companies unsecured loans of as much as ?25,000 as it seeks to boost its share of business banking.
Bank of Ireland has a ?20m fund for making loans to developing companies. The loans have a competitive interest rate of 7.2pc and are repayable over as many as 7 years. Bank of Ireland said the unsecured loans for start-ups are the first of their kind in Ireland.
Director of Bank of Ireland's business banking unit, Cathal Muckian, said: "We are aware that access to finance can be difficult for new and developing enterprises that do not have security or tangible assets."
In the past year, Bank of Ireland has added 40 business managers, recruited a team from Dublin-based IIB Bank and accelerated decision-making on customer loans as it vies for leadership of the business banking market with cross-town rival AIB.
Director of the Small Firms Association Patricia Callan said the SFA welcomed the launch of Bank of Ireland's Developing Business Loan fund.
"The requirement on business owners to provide personal security for business loans in the start-up and early stages of business development has proven to be a significant problem.
"The removal of that requirement on loans up to ?25,000 should enable more potential entrepreneurs to get their businesses up and running."
- Charlie Weston
