18th October 2016 - Enterprise Ireland · 2016-10-21 · AIB Supporting Business Customers AIB...
Transcript of 18th October 2016 - Enterprise Ireland · 2016-10-21 · AIB Supporting Business Customers AIB...
18th October 2016
AIB Supporting Business
Customers
AIB Group 2016 H1 profit of €1bn
To date we have repaid €6.5bn to the State
€6.1bn in new lending approved across the Group
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AIB Supporting Business Customers
Business & Corporate lending up 12% in H1 2016
Over 650 SME credit applications approved every week in H1 2016
10% increase in SME new lending approvals in H1 2016
We approved 94% of all SME credit applications in H1 2016
SME new lending drawdowns are up 32% on H1 2015
AIB Sector-Led Strategy
Agri SectorSecond €500m Agri
Fund
12 Agri Advisors
Exports €200m Export Finance Fund
85 Export Champions
Property Sector€350m New Residential
Homes Development Fund
Specialised Property Lending Unit
Hospitality Sector
Transport & Logistics Sector
Retail Sector
Wholesale & Distribution
Sector
Food & Fisheries
Sector
Energy & Cleantech Sector€100m Energy Efficiency
Fund
€200m Renewable Energy Fund
Entrepreneurship Entrepreneurship
Advisory Panel
Technology, Media &
Telecoms SectorFrontline Ventures
partnership
Nonprofit & Professional
Services Sector
Healthcare Sector
€300m Healthcare Fund
Manufacturing Sector
Our role supporting you in your market and our mutual customers
Creating partnerships to drive local economic growth
I am available to you for support, advice,
expertise, connections and referral where
required My team are available to you, your team and your
clients for all your business banking needs
We can leverage the full suite of banking supports available to help you and
your clients
I am your AIB contact
Our role supporting you in your market and our mutual customers
Locations in your market Digital support in your market Business/Sectoral expertise available
• 19 Local Market branch structure,
including branches & lobbies
• 1 Business Centre
• SME Direct Team available from 8am-
9pm Mon-Fri and 9am-6pm Sat
• Mobile Sales Force - available to visit
customers at their business premises
• My Business Toolkit - offering market-
leading cloud-based business app
• Internet Banking and iBusiness
Banking (iBB)
• 10 Specialist Sector Teams
• Nationwide team of Agri Advisors
• 85 Export champions
• Range of Dedicated Sector Funds
• Series of Sector specific research
reports
AIB supporting financing solutions across the business life cycle
Expansion• Existing Shareholders
• Development Capital
Funds
• Senior Debt
• Mezzanine Debt
Investors In
Growth & Established• Existing Shareholders
• Enterprise Ireland
• Senior Debt
• Receivables Finance
In partnershipwith
Early• Venture / Seed
Capital
• Enterprise Ireland
Equity Investment
• Equity Risk Capital
Concept• Savings
• Friends & Family
• Grants
• Angels
• Incubators &
Accelerators
Late / Exit• Capital Markets
• IPO
• Trade Sale
Current Accounts, Company Credit Cards, Deposits, Resources, Merchant Services & iBB
Treasury, Trade Finance & Leasing, Loans & Working Capital
Senior Debt, Invoice Finance, Loans, Invoice Discounting & Working Capital
Development Capital, Private Equity, Mezzanine Finance
Trade Sale, Flotation
BU
SIN
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TIME
AIB Equity Financing
€75m Seed Capital Fund
• Largest bank providers of Seed Capital Funding in Ireland
• AIB Seed Capital Fund – concentrates on companies in seed and early stage of development across range of sectors
• AIB Start-Up Accelerator Fund – focuses on developing high-growth export-oriented companies in emerging sectors
MML Growth Capital Fund
• €20m invested in €125m fund
• Invests in well-managed businesses with clear growth and development prospects
Frontline Ventures
• €5m committed to €50m fund
• Looks to invest in early-stage technology companies
Fountain Healthcare Fund
• €15m commitment to €103m fund
• Supports Irish companies in the specialty pharmaceuticals, biotechnology, medial devices and
diagnostics area.
Atlantic Bridge Fund
• €15m committed to a €138m fund
• Concentrates on technology companies with global market scalability
Causeway Capital Fund
• €5m committed to €30.5m fund
• Invests in established Irish and UK SMEs with ambitious management teams and strong growth prospects
ACT V Venture Capital Fund
• €15m committed to €64m fund
• Invests in founders and management teams with the patience and perseverance to take an idea, create a Company and scale it to a unique market position
University Bridge Fund
• €5m committed to €60m fund
• Collaboration between TCD and UCD with investment from AIB, Bank of Ireland, Enterprise Ireland and European Investment Fund
AIB launched a second €200m SBCI Loan Fund in December 2015 bringing the total SBCI funding available to €400m
A typical €25,000 five year variable interest rate loan will have 60 monthly repayments of €465.98, APR (Annual Percentage Rate) 4.50%. If the APR does not vary during the term of the loan the total cost of credit of this loan i.e. total amount repayable less the amount of the loan, would be €2958.80.
*Available to most SMEs and Farmers subject to certain exclusions. Go to www.aib.ie/sbci for the full list of exclusions.The support of the Governments SBCI Fund has state aid implications
Multi Purpose Loans Available*• Working capital and investments• Refinance of loans held with certain banks exiting the Irish market• Agricultural investment loans
Loans of up to €5m for between 2 and 10 yearsLoan amounts of up to €5m are available over terms from 2 years up to a maximum of 10 years
4.5% Per Annum Variable RateA very competitive interest rate which is 2% below the Standard Variable Business Loan rate
The main features are:
AIB Fund backed by Strategic Banking Corporation of Ireland
Warning: The cost of your repayments may increase.
Borrowers must demonstrate viability 4.
At the simplest level the business has to demonstrate how it will repay the new facility sought
AIB has sufficient capital to meet all SME credit demands1.
Cash flow-focused lending2.
Good credit decisions have to be informed by information on the current and future status of the business
3.
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Access to Credit
Other Considerations
o Business owner sector experience
o Management background
o Timeliness/Reliability of information
o Financial track record (business and owner)
o Competitive position in the market
o Concentration risk
o Control over all aspects of the business (e.g. raw materials)
Most banks will stress the application and scenarios to allow for unknown events (market and internal)
How Banks consider a Credit Application from an SME
Step 2Prepare your business plan
Four Steps When Applying For Credit
Step 4Meet us to complete your application form – Your RM is your advocate
Step 1Come and talk to us regularly about your business
Step 3Be realistic, demonstrate your need, repayment capacity and ways to mitigate risk
Tip! - Have your business plan validated by a 3rd party.