Commenting on the Central Statistics Office latest External Trade figures released today, Graham Byrne, Director, Bibby Financial Servies Ireland, said:
“The increase in exports by 10% for the month of August is indeed a boost for the Irish economy following the significant drop in July.
“The news that overall there has been a 4% increase in export activity compared to this time last year indicates a welcome upward trend. However, the reality on the ground remains that Irish exporters are working on shaky ground depending on temporary measures to finance export activity.
“The Bibby Financial Services Irish Exporters Landscape Survey, conducted during August at the time of the 10% increase reported, showed that Irish SME’s are currently relying on credit cards, bank overdrafts and personal savings to fund export activity. The survey revealed that of the exporters surveyed, 25% were relying on bank overdrafts to fund export activity, 14% were using credit cards and 11% had to dip into their own personal savings.
“Our findings also showed a huge willingness amongst Irish SME’s currently not exporting to pursue overseas trade- but for a number of reasons were failing to do so. It would indicate that the 4% CSO figure on increased export activity could be vastly improved.
Of the 350 SMEs surveyed:
* 39% of business owners and managers said it was too expensive to ship their goods
* 46% of businesses cite a lack of support as a barrier to export
* And 33% said they didn’t have enough knowledge on which export markets to target.
"The survey results show that a large proportion (71%) of those hoping to begin exporting would be encouraged if they could access funding more easily.
“At the heart of exporting is the requirement for flexible funding and Irish exporters are struggling in this regard. The Irish exporting business community are working with temporary funding solutions missing on real overseas opportunities as a result.
As a specialist in export invoice finance, Bibby Financial Services intends to play our part and continue to fully support Irish SMEs in providing flexible funding to support both domestic and overseas activity.”
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Posted on 21 October 2011