Aztec Money, by allowing suppliers to sell their invoices outright in a competitive auction market place, on terms the supplier chooses, is set to transform the availability of trade and export funding for companies in Ireland. Aztec connects (non-Bank) Investors such as Asset Managers to suppliers thus replacing bank lending and removing the need for credit scoring, lending limits, or personal guarantees as suppliers sell invoices rather than borrowing against them.

Aztec Money is the easiest, fastest and most secure way to access financing for any company without using Invoice Discounting, loans or Letter-of- Credit. Suppliers simply register and start selling invoices on terms they choose and watch bidders compete to buy their invoices. Aztec Money charges a fee for successfully completed transactions with no hidden charges. Aztec operate on a non-recourse basis supporting businesses in any sector worldwide or internally in Ireland, selling invoices for Goods OR Services. The platform is proving particularly popular with Irish exporters. One of the key avenues in returning the Irish economy to some level of stability is through the growth of exports but there remains a long road to travel before this translates into significant and badly needed job creation. Currently non-exporters account for 82% of employment with SME’s very much aligned to the domestic economy. What is required is for more Irish SME’s to build an export capability to increase growth and drive the creation of new jobs leading to a steady economic recovery. One of the major obstacles for companies in deciding to approach new markets is access to finance. A recent IEA study concluded that 23.7% of companies believed this was the major stumbling block when considering branching out into markets outside of Ireland. In addition 70% of companies claimed that they had experienced difficulties in obtaining trade finance from their banks in the past year. On the up side there are investors across the globe eager to help finance this export growth. These investors have an exceptional amount of capital to invest but the most significant restrictive factor, until Aztec, was a single market place in which they could compete to buy invoices directly from suppliers. Investors on the Aztec platform focus on the company that owes the supplier payment via the invoice rather than the credit quality of the supplier.

Companies like Aztec Money aim to re-shape the architecture of global finance and help vital companies and industries develop sustainable export growth.Aztec Money’s presence in markets as disparate as Ireland and Thailand underscore the global nature of the problem facing SME’s and Exporters at a critical point in the economic cycle. Supporting and developing alternatives to the shrinking traditional forms of credit from Banks will be critical to economic development. Thomas Edison remarked, “There’s a way to do it better— find it”, Aztec Money appears to have achieved exactly that.

www.aztecmoney.ie

The Irish Direct Debit Schemes will be replaced by SEPA Direct Debit Schemes in February 2014 also. Any business that is a direct debit originator faces a bigger challenge as new scheme rules may result in a change to collection processes. The SEPA Direct Debit Core scheme enables Euro collections from both consumers and businesses across the 33 SEPA countries. There is a second Business to Business scheme but both creditor and debtor banks need to be members of the scheme. Users of the new SEPA Direct Debits scheme can continue to collect under existing mandates. There are different rules under the new scheme, the most significant of which is the 8 week refund period for authorised collections. This enhanced consumer right entitles the Creditor to a “no questions asked” refund up to 8 weeks after their account has been debited. This new rule has obvious cash flow and credit implications for organisations which rely on Direct Debits as their preferred payment collection product.

What is going to happen?

From 1 February 2014 we will see the end of national Euro clearing systems across Europe. In Ireland this will mean the end of the EMTS clearing system used by Irish banks for exchanging payments and direct debits. The traditional 6-digit National Sort Code and 8-digit Account Number will no longer be acceptable and must be replaced by the SWIFT BIC and IBAN for electronic payments.

Customers will be required to convert all domestic payee details from National Sort Code and Account Number to BIC and IBAN. The good news is that there is a free conversion tool available from the Irish Payment Service Organisation (www.ipso.ie). This service has the ability to convert bulk payment files also.

So what actions need to be taken over the next seven months in order to be ready for SEPA in time for February 2014?

Convert domestic payee details from National Sort Code and Account Number to BIC and IBAN

Organisations that utilise bulk payment services will only have to produce one payment file across the SEPA zone instead of multiple file formats based on the specific national clearing system requirements of each country.

Engage with your IT provider about updating accounts payable, accounts receivable and enterprise resource planning (AP/AR/ERP) systems to enable the output of SEPA standard file formats

Contact your bank to learn of any actions required to ensure that the business is SEPA ready in good time for 1 February 2014.

For both SEPA Direct Debit and Credit transfer schemes businesses are required to change their file formats to the new ISO 20022 XML Formats.

AIB Corporate Cash Management

The Cyclical Case…

• Near-term risks to the economic outlook have eased:
A more sustained recovery is expected from 2014 onwards as Ireland starts to benefit from its economic adjustment.
• We expect to see capital growth from this year:
The rate of decline in capital values eased in 2012 and we believe they have now bottomed out.
• Irish real estate yields appear attractive compared to most other European markets:
Dublin yields remain close to peak levels, with prime office yields at 7.0% as at the end of March 2013.
• We expect transactional activity in the Irish market to pick up during 2013:
Signs of a recovery in the real estate investment market are evident with a very sharp rise in transaction levels in the last two quarters.
• We expect the rental market to improve over the next five years:
While some Irish markets are still characterised by oversupply, rents have now largely adjusted to reflect this.
• We are forecasting attractive total returns:
We expect returns to be driven by a combination of yield compression and rental growth over the 2013- 17 period.

However, exploitation of this market opportunity will demand careful asset selection. In particular, an assessment of the sustainability of rental levels and a careful evaluation of lease terms will be required before any potential transaction.

The Structural Case…

• Diversification:
Studies show Irish real estate to have a fairly low correlation with returns from equities and government bonds.
• Robust performance:
The Irish property market has delivered robust returns over the long term.
• Liquidity and transparency:
We believe Ireland is one of most transparent and best-established property investment markets in the world.
• Tangibility and ability to add value:
Real estate is a tangible asset with intrinsic value. It is also an asset that can be improved by active management.
• Stable income and low volatility:
Returns from the real estate market have generally exhibited lower volatility than returns from the equity market.
• Inflation hedge:
Some commercial real estate leases benefit from indexation against the retail price or other inflation indices, providing a highly effective inflation hedge.

Summary

We believe this is the year to re-evaluate the benefits of investing in Irish commercial real estate. The strategic case is attractive, while the amount of downward adjustment seen in recent years in both occupier and investment markets has created significant cyclical opportunities for investors. In addition, the introduction of REITs in Ireland will bring benefits to the real estate market over the medium term.

Although risks remain – including economic uncertainty in the euro zone, ongoing weakness in the banking sector and a lack of clarity from NAMA – we believe that now is an opportune time to reappraise the merits of Irish commercial real estate as part of a diversified investment portfolio.

darren.sriharan@avivainvestors.com

START-UPS

Enterprise Ireland actively prospects for entrepreneurs and start-ups with business ideas that are innovative in nature and that have export and job creation potential. It works closely with the County Enterprise Boards (CEBs) to ensure potential entrepreneurs are provided with the supports most appropriate to their particular requirements, business ideas and stage of development. Funding is provided at the very earliest stages. For example, Enterprise Ireland’s Competitive Start Fund was launched in 2011 in response to the needs of start-ups where €50,000 is provided for 10% equity with a simplified legal agreement to kick start and validate the business idea. For more advanced start-ups, Enterprise Ireland provides funding through equity with the level of equity based on the business case provided.

NEW EXPORTERS

Enterprise Ireland has also established a new division called the Potential Exporters Division. This is aimed at helping established companies that, to date, have largely focussed on the domestic market but now wish to explore their export potential in one or more market. Information and advice is provided online, through a special export ‘helpdesk’ and a Market Research Centre which provides access to a variety of specialist sector and country reports.

Enterprise Ireland also operates a Going Global Fund which is a competitive fund aimed at companies wishing to explore opportunities to internationalise their business as a route to growth. The fund is designed to assist successful applicants to evaluate and assess overseas market opportunities, identify suitable channels to international markets and examine possibilities for web-enabling its service offer for export markets and marketing online.

SUPPORTING ON-GOING COMPANY GROWTH

Many Enterprise Ireland client companies and larger exporters are continuously seeking to expand in existing international markets and break into new markets. But to be truly successful, they need to strive for excellence across all aspects of their business. Potential international customers expect no less.

A range of funding and non-funding supports are available. For example, incentives to stimulate in- company R&D – new product, service and process development – are available through the R&D Fund. Assistance to drive R&D collaboration with research institutions is available through measures such as the Innovation Voucher Programme. Export assistance is provided through Enterprise Ireland’s 31 overseas office network. This includes the provision of in-market services, local market information and the facilities of the office network. The network also provides introductions and access to a global network of contacts and supports to help companies become more competitive in international markets are available through Enterprise Ireland’s Lean Programme. Information on Enterprise Ireland’s supports and criteria is outlined on our website www.enterprise- ireland.com. Interested entrepreneurs and companies at any stage should first take a look at what’s on offer through the website then get in touch with our specialist advisers who will guide the applicant through the supports applicable to their own particular business stage, needs and plans.

www.enterprise-ireland.com

The Bill demonstrates a progressive move forward in the area of Bankruptcy/Personal Insolvency in Ireland. It is hoped the Bill will aid those in difficulty and allow for debt arrangements to be prepared and processed quickly and cost effectively.

The Bill will make a number of amendments to the Bankruptcy Act 1998 which will see the period of bankruptcy substantially reduced to three years. It was initially envisaged the Bill would not involve the judiciary however the current proposal is to appoint 8 new Circuit Court judges specifically to administer the procedures provided for in the Bill. The Bill will create 3 new insolvency processes/arrangements which are summarized as follows:

1) Debt Relief Notice (DRN)

• €60 or less net income per week
• €20,000 or less debt
• Exit at earlier of payment of 50% of debts or three years after entering process
• Debtor entitled to a reasonable standard of living (not specifically defined)
• Only one such relief notice can be obtained in lifetime

2) Debt Settlement Arrangement (DSA)

• Arrangement formulated by a Licenced Personal Insolvency Practitioner (PIP)
• 70 day protection period to formulate arrangement (additional 40 days may be available)
• Max 5 year period but option to increase to 6 (no minimum period)
• Creditors meet and vote to approve scheme
• No secured debt included

3) Personal Insolvency Arrangement (PIA)

• Protection period and PIP appointment as per DSA above
• PIP to prepare scheme with a view to keeping debtor in their family home
• Max 6 year period but option to increase to 7 (no minimum period)
• Creditors meet and vote to approve scheme
• Secured debt included but limited to €3m unless written consent obtained from

In a cloud computing system, there’s a significant workload shift. Local computers no longer have to do all the heavy lifting when it comes to running applications. The network of computers that make up the cloud handles them instead. Hardware and software demands on the user’s side decrease. The only thing the user’s computer needs to be able to run is the cloud computing system’s interface software, which can be as simple as a Web browser, and the cloud’s network takes care of the rest.

There’s a good possibility that you have already used some form of cloud computing. If you have an e-mail account with a Web-based e-mail service like Hotmail, Yahoo! Mail or Gmail, then you’ve had some experience with cloud computing. Instead of running an e-mail program on your computer, you log in to a Web e-mail account remotely. The software and storage for your account doesn’t exist on your computer – it’s on the service’s computer cloud.

Under the SARP program 30% of basic salary (to a maximum of €127,500) is excluded from the charge to Income Tax for employees who take up full time employment in Ireland. Qualifying employees must have been a full time employee with a Company incorporated and resident in a Treaty State for the 12 months prior to arriving within the State. The individual must also be resident in Ireland to qualify for the relief. The relief does not apply to Universal Social Charge or PRSI. An Employer will also be able to bear the cost of certain items for a relevant employee on a tax free basis to include the cost of a return trip for the employee and family to an overseas country to which they are connected plus primary and or post primary school fees up to €5,000 per annum per child where the school is approved by the Minister of Education.

The SARP return is available on the Revenue website and requests:

• details of the Employer and Employee registration numbers
• employee name
• amount of income, profits or gains in respect of which no tax was deducted
• costs associated with an annual return trip to the country of residence or nationality for self and/or family
• costs of school fees for children paid to an approved school in the state
• increase in number of employees as a result of the operation of the relief or number of employees retained by the company as a result of the operation of the relief