The Irish Small and Medium Enterprises Association (ISME) have released their most recent Quarterly Bank Watch Survey today.
The survey shows that there are improvements in the area of refusal rates, having dropped to their lowest in eight years. However, the Association expressed its concern at the length of time it is taking for business owners to get an approval on loans and accessing credit.
According to the research, 54% of respondents believe bank fees and charges are a cause of concern. Seventy per cent state that the Government is having either a negative or no impact on SME lending.
Thirty six per cent of respondents had required additional or new bank facilities in the last 3 months, compared with 38% in the previous quarter. Thirty per cent of companies who applied for funding in the last three months were refused credit by their banks, a decrease on the 36% (Q3).
ISME CEO, Neil McDonnell commented, "Todays results shows a mixed picture. It is welcome to see a drop in the refusal rate, however this figure is still far too high. SMEs account for nearly all active enterprises, employ almost two thirds of the total workforce and account for nearly half of all net job creation in Ireland, they are the engine behind our recovering economy. It is vital that our banks support and assist the SME sector."
He added, "There are two issues of concern. The decline in formal applications and the continued delay in decision time by banks on lending. Government, regulators and relevant stakeholders must create a greater awareness of alternative finance."
Source: www.businessworld.ie
