AIB introduces PromptPay, a versatile financial solution conceived to support businesses deal with big yearly payments which can create significant pressure on even the most robust financial statements. Due to foreseeable hefty payments like annual pension contributions, preliminary taxes, commercial property fees or audit costs, your financial resources could be stretched thin.
Nevertheless, PromptPay facilitates confronting these charges, spreading substantial expenses over six to 11 months, via fixed interest repayments. This effectively minimises worries about delayed customer payments, sudden occurrences affecting your cashflow, and the difficulty to settle your bills promptly. With the opportunity to apply for as low as €5,000, it has now become less complex to budget yearly.
David Cotter, AIB’s business consultant for Cork, explains that cashflow management actively governs the inflow and outflow of funds from your business. It involves more than just your current bank balance. Also, it takes into consideration the funds owed to you, any unpaid liabilities, or upcoming payments you might have. It requires actions aimed towards sustaining your business’s financial well-being presently and in the future.
As annual tax deadline approaches, managing cashflow becomes crucial. This period may be hectic for many business owners. However, early tax planning, efficient financial projection, and cashflow management could considerably alleviate the stress, Cotter points out.
With PromptPay, there are no surprising changes in terms and it simplifies annual budgeting. It’s effortless to establish and upon approval, it’s easy to access, aiding businesses in effective planning.
“We recognize that businesses appreciate certainty. PromptPay provides exactly that. It’s a viable and economical solution for businesses to manage their short-term working capital needs by transforming their large annual costs into easy monthly payments. It allows businesses to plan and budget year-round without the need for significant cash reserves to cover hefty annual payments in a single instance,” Cotter states.
David O’Donnell, the commercial director of Cool Runnings Events, appreciates the convenience of PromptPay, especially in terms of its hastened procedures and the simple drawdown process, as echoed by frequent customer feedback. In a busy customer’s life, electronic signature capability through DocuSign is a crucial advantage.
Cool Runnings Events, a well-known Irish entity in organizing some of the most cherished ice rink and skate trail adventures, operates under the IceSkating.ie brand in Munster and Leinster. The company also owns Zipit Forest Adventures, a thrilling high ropes venture with locations in Dublin, Cork, and Roscommon.
As the festive season approaches, Cool Runnings promises to offer its greatest experiences to date. Attractions will include an exclusive Alpine skate-trail at SuperValu Pairc Uí Chaoimh in Cork, transforming it into a first-of-its-kind sports stadium experience. The popular Christmas skating rinks in Blanchardstown and Dun Laoghaire, Dublin, will also make a comeback.
The well-established family enterprise, initiated in 2007 by spouses Bill Cremin and Orla O’Neill, welcomed commercial director David O’Donnell into its structure three years back. As a seasoned accountant who had previously collaborated with Grant Thornton, O’Donnell seized the opportunity to work with the experiential event company with enthusiasm. “Being part of an institution that creates joy for both the team and its customers and that has been recognized as a Great Place to Work is truly gratifying,” says O’Donnell.
Nonetheless, he recognizes that maintaining an efficient cash-flow system is a serious matter. It’s even more critical for Cool Runnings Events, which is on its growth expedition with a handful of potential locations. Plans are underway at various sites, while finding new locations or landlords remains a constant pursuit.
The company’s progression could strain cashflow, just like any other business. As Cool Runnings is subject to fluctuations like seasonality, it has to plan accordingly. Casual staff numbers, for instance, can triple during peak seasons, alongside the existing 24 full-time employees.
The projection of earnings for its various business brands is often complicated due to its seasonal nature, with Zipit seeing the highest revenues in July and August, while November and December are peak months for ice rinks. Also noted, expenditure is at its peak between August and October. “This is the period when we make initial payments to our suppliers and landlords and invest in equipment. Our commitment to enhancing our customer experience and introducing new ones requires significant investment, resulting in substantial cash expenditure during this period,” he elucidated.
Seamless Payments
O’Donnell attributes their efficient cash flow management to AIB’s PromptPay solution. “It’s a convenient, user-friendly facility we can count on. It has an uncomplicated approval process, with no excessive demands for information. We can quickly withdraw once approved, enabling us to predict our cash expenses effectively,” expresses O’Donnell.
He explains, “for instance, when the insurance bill arrives shortly, I plan to use our PromptPay facility to cover the costs, spreading the payment over 11 months. The decision on when to draw it out can be made swiftly. The versatility of PromptPay is what elevates its significance for us. Essentially, we have a facility for 11 months, but if we opt to pay it back when cash inflow is high, it’s a feasible option.”
With this facility in place, O’Donnell admits he feels more secure. “As an accountant, I am excessively cautious, and for a business like ours, it’s simply reassuring to know that we can withdraw cash at a moment’s notice if needed.”