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Securing funding is a crucial step for many businesses — whether you’re launching a start-up, expanding your operations, or developing a new product. But when it comes to financing your next move, one key question arises: should you pursue a grant or apply for a loan? At Hurley Accountancy we believe that both options have advantages and limitations, and the best choice often depends on your business’s current stage, cash flow, and strategic goals.

Understanding Grants

Grants are non-repayable funds typically awarded by government bodies, enterprise agencies, or non-profit organisations. They’re designed to support innovation, job creation, sustainability, export development, and more.

Advantages:

• No repayment or interest
  

• May open doors to further support or mentoring
  

• Can improve business credibility
  

Limitations:

• Highly competitive and often sector-specific
  

• Usually comes with strict eligibility criteria

• Application processes can be time-consuming
  

Grants are particularly well-suited to early-stage businesses or companies undertaking specific projects (such as R&D, digital transformation, or green initiatives) that align with public policy goals.

Understanding Loans

Loans provide access to capital with the expectation of repayment, usually with interest. They may come from banks, credit unions, or state-backed lenders like Microfinance Ireland or the Strategic Banking Corporation of Ireland (SBCI).

Advantages:

• Funds can be used flexibly, depending on the loan terms
  

• Faster access than most grants
  

• Builds credit history for your business
  

Limitations:

• Requires repayment regardless of business performance

• May need personal guarantees or collateral
  

• Adds pressure on cash flow
  

Loans are often ideal for scaling businesses with predictable revenue who need quick access to funding for working capital, equipment, or premises.

Which Should You Choose?

• Start-ups with limited revenue and a strong value proposition may benefit most from grants, especially if they’re innovating in tech, sustainability, or export.
  

• Established businesses with steady cash flow and clear growth plans may prefer loans for speed, flexibility, and scale.
  

In some cases, a hybrid approach works best — using grants to offset specific project costs while leveraging loans for broader capital needs.

Grants and loans serve different purposes at different business stages. Before you decide, speak to your accountant or financial adviser to assess what funding mix aligns best with your goals, repayment capacity, and long-term strategy. The right choice can accelerate your growth — without overextending your resources.

If you would like to discuss your business needs. Call Hurley Accountancy on 0238849722 or email imelda@hurleyaccountancy.com

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