Recent economic surveys indicate that Irish SMEs are positive about the future, with more than two-thirds expecting sales to grow. To support their growth, many businesses will seek bank funding.
Applying to your bank for credit has never been simpler, with increased automation and online applications. However, businesses can still face hurdles in accessing the funds they need to grow. To improve your ability to secure loans, two things are key:
1) Having a strong credit track record (paying off existing debts in a timely manner) and
2) Ensuring your financials are up to date and in order.
Catherine Collins,
Head of Credit Review
According to Catherine Collins, Head of Credit Review: “Before applying for credit, businesses should check their credit records on the Central Credit Register. This is a system that collects and stores information about loans of €500 or more, managed by the Central Bank of Ireland. Businesses will then need to clearly demonstrate their financial capability to their bank by providing an overview of both historic finances and projections going forward. This should show that you have a clear understanding of your revenue and expenses, the impact on cash flow, how the proposed loan will add value to your business, and that you will be able to make your repayments.”
How can Credit Review help?
Credit Review is an independent office reporting to the Minister for Finance, set up to assist viable SMEs and farms access bank finance for their businesses by providing an appeals service for bank credit refusals. Credit Review accepts applications from businesses that have had new credit facilities of up to €3m refused or existing facilities reduced, restructured, or withdrawn by Irish banks – AIB, Bank of Ireland, and PTSB. Credit facilities include overdrafts, term loans, or asset finance for business equipment.
The appeal focuses on an ability to repay the credit and, according to Collins: “In most of the cases that come to us, we are able to recommend a solution that works for the borrower and the bank – and in 80% of the cases we support, the bank will provide credit.”
For more information on Credit Review’s independent appeals process and information services, visit www.creditreview.ie or call the helpline on 0818 211789.
