A survey published today reveals 96% of Irish SMEs expect to grow in the next year, with 37% seeking finance to employ more staff. But of the 590 respondents, half said they struggle to access finance. Most respondents added that Irish banks are “very cautious” when it comes to lending.
A new group aims to remedy this issue by providing alternative options for business finance. Independent Finance Providers of Ireland (IFP Ireland) comprises a group of finance providers who are not part of the domestic banking industry.
IFP Ireland, who commissioned the SME survey, comprises group members who all currently operate in Irish markets. Its goal is to increase funding options for SMEs planning for growth. IFP Ireland's survey further reveals that:
- 32% of companies would consider funding a vital project from alternative finance if the banks refused them, 38% would take funding from cashflow and 18% would abandon the project altogether.
- 82% would consider seeking finance from a provider other than a bank.
- 72% plan to apply for funding in the next year. Of that number, 27% are geared up to finance the projected growth with their current funding facilities.
IFP Ireland represents a wide range of sectors and firms, aiming to provide a one-stop-shop for alternative financing for all varieties of Irish SMEs. The types of finance IFP Ireland members can offer includes:
- Leasing & Finance
- Trade Finance
- Invoice Finance
- Invoice Trading
- Lending
- Equity
IFP Ireland Chairman John Power said he is confident the group can offer a solution to most Irish business financing requirements. “Companies in Ireland need a more expansive choice of funding where there is less reliance on single source finance from a limited number of providers," he said. "Our members offer these broader finance options for companies, particularly SMEs, helping to bridge any funding gaps and fuel growth.”
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