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New study confirms SME funding crisis

Wednesday, September 05 10:24:12

New research has revealed that 42pc of businesses in Ireland haven't even approached their banks for finance for fear they'll either be turned down or that the cost of existing borrowing will go up.

The findings, from the latest Business Barometer commissioned by Close Brothers Commercial Finance, further demonstrate that small and medium sized businesses don't know where to turn when it comes to finding the funds to survive and grow.

Harry Parkinson, Managing Director of Close Brothers Commercial Finance in Ireland said; "Access to funding is one of the most critical issues facing businesses across Ireland and while the banks may have retreated, our message is clear we have the funds in place to assist viable companies access working capital to ensure their success."

"In the past twelve months we have provided more than E200 million to businesses throughout Ireland, offering both invoice finance and asset finance, and thus relieving the pressure on their cash flow streams."

"The team at Close Brothers relish tackling every problem with an approach that is realistic, that is designed to maximise the potential within a company by providing access to the requisite financial tools. In contrast to many others the packages we offer are always built around the flexibility of our funding solutions and our objective at all times is to direct and guide the client along a route that matches their needs."

Invoice finance is a popular alternative to bank lending as it enables businesses to boost cash flow by receiving 85pc of the value of invoices so that business can continue to operate without having to wait for payment from customers.

In addition, through asset finance you can release the value of assets that a business already owns in order to improve cash flow or it can provide you with additional finance to purchase new equipment.