Menu
29/11/2011
SMEs 'Are Granted Credit': Report
An independent report on the demand for credit by Small and Medium Enterprises (SMEs) has been published today.
The independent report was commissioned by the Department of Finance and shows 36% of SMEs surveyed requested bank credit in the period April-September 2011.
When applications pending were excluded, 70% of those requests were approved.
In relation to the 64% of SMEs who did not request bank credit in this period and 80% did not need credit or had sufficient internal reserves, while 7% believed the banks were not lending.
During the review period, 48% of SMEs reported a decrease in turnover while 26% reported an increase.
Welcoming the report for the further clarity it brings to the pattern of credit demand by the important SME sector, the Minister for Finance, Michael Noonan TD said: "This report will further enhance the ability of my Department, along with the Credit Review Office, to understand the business environment in which SMEs operate and their relationships with the banks.
"The results of this survey will be a valuable resource in informing policy decisions in this area and will be of benefit to all stakeholders.
"I am determined that the lending targets set by the Government for the two domestic pillar banks for the three calendar years, 2011 to 2013, will be achieved.
"In order for these targets to be met, I would encourage SMEs to approach the banks with viable business plans.
"SMEs should seek the available assistance from Government Agencies, such as Enterprise Ireland and the County Enterprise Boards, in order to ensure that their business plans are developed as far as possible.
"The Government recently announced details of a Micro Finance Loan Scheme and a Temporary Partial Credit Guarantee Scheme to assist viable SMEs on the margins of commercial lending decisions in accessing additional credit.
"These Schemes will be in place from the first quarter of next year, and will be particularly welcome in light of the findings of this report in relation to micro-enterprises," he said.
"It is vital that the banks continue to make credit available to support economic recovery. However, it is not in the interest of the banks, businesses or the economy for finance to be provided unless the business is viable and has the capacity to meet the interest payments and repay the sum borrowed."
(BMcC/GK)
The independent report was commissioned by the Department of Finance and shows 36% of SMEs surveyed requested bank credit in the period April-September 2011.
When applications pending were excluded, 70% of those requests were approved.
In relation to the 64% of SMEs who did not request bank credit in this period and 80% did not need credit or had sufficient internal reserves, while 7% believed the banks were not lending.
During the review period, 48% of SMEs reported a decrease in turnover while 26% reported an increase.
Welcoming the report for the further clarity it brings to the pattern of credit demand by the important SME sector, the Minister for Finance, Michael Noonan TD said: "This report will further enhance the ability of my Department, along with the Credit Review Office, to understand the business environment in which SMEs operate and their relationships with the banks.
"The results of this survey will be a valuable resource in informing policy decisions in this area and will be of benefit to all stakeholders.
"I am determined that the lending targets set by the Government for the two domestic pillar banks for the three calendar years, 2011 to 2013, will be achieved.
"In order for these targets to be met, I would encourage SMEs to approach the banks with viable business plans.
"SMEs should seek the available assistance from Government Agencies, such as Enterprise Ireland and the County Enterprise Boards, in order to ensure that their business plans are developed as far as possible.
"The Government recently announced details of a Micro Finance Loan Scheme and a Temporary Partial Credit Guarantee Scheme to assist viable SMEs on the margins of commercial lending decisions in accessing additional credit.
"These Schemes will be in place from the first quarter of next year, and will be particularly welcome in light of the findings of this report in relation to micro-enterprises," he said.
"It is vital that the banks continue to make credit available to support economic recovery. However, it is not in the interest of the banks, businesses or the economy for finance to be provided unless the business is viable and has the capacity to meet the interest payments and repay the sum borrowed."
(BMcC/GK)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
16 September 2011
Experian Reports Rich Getting Poorer
Experian has reported a massive 100% increase in the level of borrowing amongst high income families in their 30s and 40s over the past three years, with many citing the rising cost of living as the main cause.
Experian Reports Rich Getting Poorer
Experian has reported a massive 100% increase in the level of borrowing amongst high income families in their 30s and 40s over the past three years, with many citing the rising cost of living as the main cause.
18 June 2013
Call For SMEs To Engage Fully With Their Banks
Fine Gael Cork North Central Deputy, Dara Murphy, has called on cash strapped small and medium enterprises (SMEs) to engage fully with their banks as a range of measures have been put in place in recent months to assist business owners, many of which they may not be aware.
Call For SMEs To Engage Fully With Their Banks
Fine Gael Cork North Central Deputy, Dara Murphy, has called on cash strapped small and medium enterprises (SMEs) to engage fully with their banks as a range of measures have been put in place in recent months to assist business owners, many of which they may not be aware.
09 January 2013
Minister Welcomes New Funds For Irish SME Sector
The Minister for Finance, Michael Noonan T.D., today welcomed the National Pensions Reserve Fund (NPRF) announcement of three new long-term funds that will provide equity, credit and restructuring / recovery investment for Irish small and medium-sized businesses (SMEs) and mid-sized corporates.
Minister Welcomes New Funds For Irish SME Sector
The Minister for Finance, Michael Noonan T.D., today welcomed the National Pensions Reserve Fund (NPRF) announcement of three new long-term funds that will provide equity, credit and restructuring / recovery investment for Irish small and medium-sized businesses (SMEs) and mid-sized corporates.
06 May 2011
Bank Rate Decisions 'Good And Bad' For NI
News that the Bank of England's Monetary Policy Committee this week voted to maintain the official bank rate paid on commercial bank reserves at 0.5% has been greeted as a 'curate's egg' by a local economist. The previous change in the rate was a reduction of 0.5 percentage points to 0.
Bank Rate Decisions 'Good And Bad' For NI
News that the Bank of England's Monetary Policy Committee this week voted to maintain the official bank rate paid on commercial bank reserves at 0.5% has been greeted as a 'curate's egg' by a local economist. The previous change in the rate was a reduction of 0.5 percentage points to 0.
19 October 2012
Credit Guarantee Scheme Will Help Struggling Businesses
Speaking following the launch of the Credit Guarantee Scheme by the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, Fine Gael Cork North West Deputy, Áine Collins said the scheme will act as a lifeline to many businesses who cannot access credit.
Credit Guarantee Scheme Will Help Struggling Businesses
Speaking following the launch of the Credit Guarantee Scheme by the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, Fine Gael Cork North West Deputy, Áine Collins said the scheme will act as a lifeline to many businesses who cannot access credit.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
