Credit review office calls for higher limit for SME credit appeals
The head of the Credit Review Office has called for a higher limit at which SMEs can appeal refusals for credit.
Credit Review boss John Trethowan said the Government should increase the threshold for appeals six-fold to €3m.
He also complained that there was not more evidence of support for “enterprise risk taking” lending.
The Small Firms Association welcomeD his comments and a report which showed lending is rising.
“This report clearly shows that the pillar banks are open for business. We now need to see them lending to more challenging but viable entrepreneurial businesses to ensure they can access the credit they require to create sustainable businesses and employment,” said acting SDFA boss Avine McNally.
She added that a key challenge for the banking sector is meaningful debt restructuring for businesses. “While lending solutions must be found to allow SMEs deal with their legacy debt, we must ensure that in this process viable business are supported to ensure survival,” she added.
The latest report shows a 56pc success rate for appeals for credit refusals.
The CRO was established by the Government three years ago to give companies a second chance when banks refuse credit.