Our Head of Sales, Asset Based Lending, John Mackey was delighted to be invited to speak at the recent Enterprise Ireland’s Seminars in Limerick & Dublin advising local businesses on getting the capital structure right & identifying the appropriate sources of funding to help them growth their businesses.
John Mackey was joined by speaker, Paul Kerr First Choice, who spoke about how Banks are currently turning away 50% of SME loan applications, creating a real need for alternative forms for funding. He went on to say that, in addition to the practice of seeking personal guarantees, the banks 92% of SME’s still deal with banks who have multiple legacy issues such as regulation, capital adequacy, cost cutting/. The pillar banks are also moving to direct models of banking, which is not working.
According to Kerr, banks should have a decision for SME lending applications in 15 days, however the reality is that businesses can often wait weeks for a decision, and that decision is not always a positive one. in fact, according to the latest ISME report, in the last 3 months along, loan refusal rates have increased from 24% to 36% and Businesses wait on average 8 weeks from decision to funding drawdown.