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"Over E500m in credit unclaimed by SMEs"

Wednesday, September 12 11:21:38

Over half a billion euro of available credit has been left unused by Irish SME's, new figures show.

The figures for the second quarter of 2012 were revealed today by the Asset Based Finance Association (ABFA).

The news comes as Irish enterprises report that securing traditional lines of credit remains difficult.

Figures released by ABFA show that Invoice finance providers agreed to make E1.8 billion available to Irish businesses as at June of this year.

However, despite this funding being readily available for businesses to use, just E1.27billion was actually drawn down.

Responding to the shortfall in take-up, ABFA says urgent action is needed to raise awareness of the different types of credit, such as Invoice Finance, that are available to Irish enterprises.

"Irish companies, who are looking to improve their cashflow, need to urgently look at this significant creditreservoir, that so far has been left largely untapped. The figures show that in the second quarter alone half a billion euros was 'left on the credit shelf' by Irish business," said ABFA Chief Executive, Kate Sharp.

"We would ask that business people and credit providers should think beyond the usual avenues such as overdraft and loan arrangements and instead start looking at the lines of credit that are more readily available through Invoice Finance. We are saying to SME's and large businesses alike, who need cashflow solutions, to contact our members and see if we can help. Our members are ready, willing and able to step into the breach and provide these funds for Irish businesses," she said.