Call For SMEs To Engage Fully With Their Banks

Fine Gael Cork North Central Deputy, Dara Murphy, has called on cash strapped small and medium enterprises (SMEs) to engage fully with their banks as a range of measures have been put in place in recent months to assist business owners, many of which they may not be aware.

Mr Murphy said: "SMEs are the lifeblood of our economy, employing hundreds of thousands of people across the country. While our exports have exceeded even pre-crisis figures, significant challenges persist in the domestic economy. This is impacting on SMEs, many of whom are finding it difficult to cope.

"While a more responsible approach to lending had to be adopted by the banks, the onus is on them to ensure that viable businesses have access to the credit they need to run their daily operations. In many instances, businesses are assuming that the banks will deny them credit due to having had negative experiences in the past. In the majority of cases, as long as the business is viable, banks have the funds and are willing to lend.

"In the case of AIB, a range of measures have been put in place to support SMEs. These include a new simplified loan application process, with decisions on loans of up to €25,000 being made at the local branch by the next business day. AIB, in conjunction with Amarach Research, is also conducting a series of reports that examine and analyse key issues facing different sectors of Irish industry that are under pressure, such as the pub trade, construction and the hotel sector."

(CD/MH)