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The Department of Finance has today published the latest in its series on SME Credit Demand Surveys which covers the six month period April to September 2016. This survey series is the most comprehensive survey of SME Credit Demand in Ireland and covers all the various sizes of SMEs be they micro, small or medium-sized enterprises.

Some of the key findings of the survey include:

• Favourable trading conditions remain for SMEs with 86% of SMEs reporting a stable/increased trading performance and 65% of SMEs reporting a profit over the six months from April to September 2016.
• During the period of this survey April to September 2016 some 23% of SMEs requested credit and within that 84% of completed credit applications were approved or partially approved.
• Of those who did not request credit 86% of SMEs stated that they did not seek credit because they did not need it.
• 50% of respondents believe that the banks are lending to SMEs and only 1% of SMEs did not request credit because they felt it was too expensive to borrow.
• Purchases, replacement or lease of new vehicle/equipment has edged ahead as a main reason for finance requests (29%, up 1% from March 2016), followed by working capital/cash flow requirements (27%, down 3%) and expansion requirements (26%, up 10%).

The Minister for Finance, Michael Noonan T.D. today welcome the results of this most recent survey, saying:

“The results of this latest SME Credit Demand Survey show a subdued demand for credit from micro, small and medium-sized enterprises.  However, encouragingly, the number of businesses reporting a profit has increased and more SMEs are investing in assets for their business.  The mind-set of SMEs remains focused on stabilisation and moderate growth of the business.”

“Once again, it is heartening to see the growth in awareness for State supports that have been put in place by the Government for Irish SMEs.  This is also reflected in increased traffic to the Supporting SMEs Online Tool, www.supportingsmes.ie.   We will continue to work alongside SMEs so that we can develop, refine and implement policy measures to support our indigenous businesses. As evidenced in the Programme for a Partnership Government, we remain committed to ensuring that all viable businesses operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy.”

SME Credit Demand Survey – April to September 2016

ENDS

15 DECEMBER 2016                     

                                                   

Further information from:

David Byrne – Press Officer – pressoffice@finance.gov.ie – 086 026 7978 

 

Notes for editors

Background to the series of SME Credit Demand Surveys

Bank of Ireland and AIB agreed in July 2011 to fund an independent review on credit demand by SMEs, which was commissioned by the Department of Finance following a public tender competition. The first ten reviews covered the period April 2011- March 2016. The review published today covers the period April to September 2016.

The review, carried out by Behaviour and Attitudes, examined the demand for credit through a telephone survey covering over 1,500 businesses. The survey was of high quality, drew a carefully constructed sample from a large database of SMEs, made repeated calls to ensure a full response and asked factual questions. The full questionnaire is included in the report. The report and previous reports are available on the Department of Finance website at www.finance.gov.ie