Dept of Finance, SME Credit Demand Survey

Published by: Jimmy Larsen

2015.11.10

The independent survey on demand for bank credit by SMEs in Ireland was published this week covering the period April to September 2015. This survey was conducted by RED C and was the 9th wave of this survey, each covering six month periods.

This survey is the most comprehensive survey of SME Credit Demand in Ireland covering over 1,500 respondents and over 6,000 direct calls to SMEs.

The overview of findings are shown below, with the full report available for download.

“The results from this period’s Credit Demand Survey suggest a further improvement in trading conditions among SMEs. 85% of all SMEs report improved or stable turnover performance and we also see improvements in profit performance and staff numbers.

However, credit demand remains low with 30% of all SMEs having applied for bank finance in the past 6 months – a decrease compared to the previous 6 month period. It is evident that while SMEs are pursuing smaller growth opportunities, the main focus is business consolidation. SMEs remain cautious in relation to debt and many rely on internal funds for financing growth.

In terms of access to bank finance, we see improvements with lower decline rates and improved turnaround time from application to when a decision is made. Banks are now more likely than previously to approve applications for growth and expansion purposes; in fact, applications for growth are now more likely to be approved than applications for working capital.

While we see further improvements in the perception of whether banks are lending to SMEs, most continue to believe banks are only lending to a small number of SMEs.”

The full report is available for download here:

Dept of Finance SME Credit Demand Survey Report – Apr-Sep 2015 6th Nov Final

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