The Irish Small & Medium Enterprises Association, today has claimed that banks are continuing to refuse lending to the majority of SMEs.
Contrary to the banks’ claims and their so-called commitment to Government, business lending applications are still being declined at a high level, according to ISME.
The situation is now so critical that the Association h as demanded a full investigation by the Central Bank into SME lending and a full disclosure of the real lending figures,
as distinct from the fairy tales being published by the individual banks concerned.
The results of a survey, which attracted 834 responses, are consistent with the previous quarterly results and provide a strong indication of the current lending environment for SMEs.
· 55% of companies who applied for funding in the last three months were refused credit by their banks, compared to a similar figure in March and 42% in October 2009.
· 82% of firms outlined that the banks are making it more difficult for SMEs to access finance.
· 64% of respondents have been with their banks for 10 years or more.
· Of the 45% approved for funding, 69% have drawn down the finance either fully or in part.
· 52% of requests were for overdrafts, with 32% for term loans.
