Bibby Financial Services launches findings from 2011 Irish export landscape survey
Irish firms are resorting to using credit cards and bank overdrafts to fund the export of their goods, according to new research.
Despite the government pinpointing exports as a key way to return to growth, the survey reveals that of the exporters surveyed, 25% are relying on bank overdrafts to fund export activity, 14% use credit cards and 11% have had to dip into their own personal savings.
The survey of 350 businesses across Ireland carried out by leading independent export invoice financier Bibby Financial Services also found that most firms receive little or no help from government agencies when trading abroad.
It found:
* 39% of business owners/managers said it was too expensive to ship their goods
* 46% of businesses cite a lack of support as a barrier to export
* 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.
Graham Byrne, Bibby Financial Services Ireland Director, said: “The Irish Government places a huge emphasis on the role of export activity in helping to bring about economic recovery. It is therefore worrying that our research findings show that Irish exporters are funding overseas activity with temporary and costly finance solutions in the form of overdrafts and credit cards.
“This trend needs to be urgently addressed- exporters using such methods are working on shaky ground. At the heart of exporting is the requirement of flexible funding and Irish SMEs need to look at the alternative funding options to ensure that they are maximising overseas opportunities.”
Out of those surveyed already involved in export activity, 66% cite securing new business as a core challenge, followed by 63% having trouble with maintaining cash flow and close to half claim that access to finance is an ongoing challenge with slightly fewer citing concerns in the area of collecting payments from overseas customers.
Download the Irish Export Landscape Report 2011 FREE
Posted on 19 September 2011