Saturday 20 January 2018

Over 30pc of SMEs sought credit in six months to September reporters

OVER one third, or 36pc, of small and medium sized enterprises sought bank funding between April and September according to a new report on the sector commissioned by the Department of Finance.

When applications pending were excluded, 70pc of requests were approved with most of the demand for cash flow and working capital.

The report also concluded that 80pc of firms did not need credit or had sufficient returns.

A further 7pc said that banks are not lending.

Just under 80pc of those who were refused credit said they did not agree with the reason given.

The report also showed that it is taking much longer for banks to decide whether to lend to SMEs with only half of requests processed within 15 days.

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