SFA Comment on Credit Review Office Report

Friday, 3 July 2015

  • SFA Welcomes Credit Review Office Report
  • Investing and Paying Down Debts Priority for Small Firms
  • Diversity in funding options essential

The Small Firms Association has welcomed the publication today of the Fifteenth Credit Review Office report. SFA Director, Patricia Callan commented: “It is a strong endorsement of the credit review system that Ulster Bank and PTSB have now voluntarily entered the Credit Review System and have recommitted to the Irish small business market. However it is critically important that we see more new entrants into the small business finance space to ensure there is choice and competition for those firms seeking finance. The new SBCI loan fund should be used to attract new financial intermediaries into the market to provide lower cost, new and innovative products, such as longer term loans and interest free holidays, which will meet a market need.”

A recent poll of SFA members found that investing is the current priority for 35% of small businesses, followed by paying down debts, which is a priority for 25%. 17% of members are prioritising saving, with 13% seeking new loans and 10% restructuring their borrowing.

Callan commented “What our small business members want is a funder that understands their business and wants to build a long-term relationship with the business. If they have trust that this is available, then demand for credit will increase and it is essential that the banks move their risk pendulum to assess the business owner and the business potential, rather than their traditional focus on asset backed lending and security. Even those businesses with legacy debt, if their business model is good, will want to expand in a growing economy and they must be allowed to do so. Only by backing small businesses, will the jobs and growth we so desire be delivered. An effective financial system is a fundamental part of this equation”, concluded Ms Callan.

Ends.

For further information, please contact: Patricia Callan, SFA Director at Tel: 087 6999 345 or e-mail: patricia.callan@sfa.ie
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