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Credit Review ensures viable SMEs and Farms have access to Bank Credit

/ 23rd February 2022 /
Jake Mulcahy

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This simple and affordable appeals process is available to all Irish SMEs and farms, writes Catherine Collins (pictured)

Have you been refused credit recently? Credit Review can help.

Credit Review was set up by the Minister for Finance to ensure viable businesses have access to credit from Irish banks. Its appeals process allows businesses to have an independent review when a credit request is declined by a bank. The appeal applies to new credit applications, existing facilities that have been reduced or withdrawn, or requests to restructure a credit facility.   

The process, which is simple and affordable, is available for all Irish SME and farm businesses. We can review requests for new credit facilities such as overdrafts, term loans, invoice or asset finance up to a value of €3m. Participating banks include AIB, Bank of Ireland, PTSB and Ulster Bank.

Restructuring proposals can also be appealed, whether the restructuring has been sought by the borrower or the bank – restructuring may be increasingly important post-Covid, as business adapts to changing economic conditions. Most importantly, in over 80% of the cases we support, SME and farm businesses are approved a lending or credit solution by their Bank.

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So, what happens when a business or farm applies to Credit Review?

When a business applies for a review, a reviewer is assigned to form an opinion as to whether the business is viable and will, in the future, have sufficient cash to pay back the loan or meet restructuring obligations. The Credit Review team includes a panel of expert credit professionals across Ireland, with frontline SME and farming finance experience. They are credit experts who are familiar with the banking sector and how it works, and they understand what it takes to run a successful business.

The reviewer contacts the borrower to discuss the case and better understand the business by looking at its track record, existing debts, future potential, management and markets, as well as the reason for the new credit application or restructuring request.

The bank is also asked to provide details on how it views the business and specifically why it has refused to lend. Once the case is reviewed, we form our opinion on the bank’s credit decision, which is sent to the bank and the borrower.

In most cases that come to Credit Review, we can support the borrower by recommending a credit solution that works for both the business and the bank.  However, where the reviewer is unable to recommend the credit facility requested, we will suggest a roadmap to make future bank applications more likely to succeed, and will signpost SMEs toward other supports that can help them to grow and develop their businesses.

Getting Help from Credit Review

Post-pandemic, many good businesses will survive and thrive – and access to bank credit may be required to accelerate their recovery and growth. Other potentially viable businesses may face challenges but, by working though their difficulties with their funders and banks, and availing of all government supports, can get back on the road to growth.

We encourage all business borrowers who feel they are having difficulty accessing credit to contact Credit Review. In addition to our appeals process, Credit Review operates a helpline service providing useful information and assistance over the phone to SMEs and farmers. Sometimes credit issues can be resolved without needing a formal appeal.  The Credit Review website also has a number of accessible, easy-to-understand information notes on banking and credit issues that can help businesses successfully access credit.

For more information on our independent appeals process and information services, visit creditreview.ie or call the helpline on 0818 211789 or 087 121 7244.

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