“The results from the latest ISME survey clearly highlights the plight Irish businesses are facing when approaching banks for access to credit.
“Despite the Government’s efforts to encourage traditional lenders to release credit Irish SME’s are facing a closed door policy with credit being released on an ad-hoc basis. This is having a crippling effect on SME’s struggling to survive. Irish SME’s are the heart of the economy yet access to credit remains a core issue.
“Traditional lenders are unwilling to do business with what they perceive to be high risk candidates which is hindering Ireland’s economic recovery. It is incumbent on all who are in a position to address this situation to work effectively together to bring about change.
“We are of the belief that if traditional lenders are unwilling or unable to offer credit that alternative forms of finance should be recommended to ensure that SME’s have the cash flow in place to run and grow their business. The fact is that traditional lending institutions have a responsibility to advise clients on all the options open to them.
“There are alternative finance solutions available to ease the cash flow burden Irish SME’s are experiencing. Invoice finance is a viable alternative cash flow solution that enables businesses to raise funds by leveraging their biggest assets, unpaid invoices, to inject an immediate flow of cash into the business.
“Irish SME’s can generally benefit from a larger funding facility which is readily available; an option which arguably outweighs what traditional lenders have to offer. Financial institutions and government have a responsibility to educate SMEs and highlight all options available to them in order to keep Ireland in business.” Graham Byrne concluded.