Credit Review – ensuring viable SMEs and farms have access to bank credit to accelerate business growth

Many Irish businesses are now repaying Warehoused Tax Debt to Revenue following the 1st May deadline for repayment arrangements. With this additional cash outflow, business owners may need to review cashflow needs to ensure they maintain enough cash in their business. Running out of money is one of the most common causes of business failure – even a profitable venture will struggle if it runs short.

Businesses should continuously update cashflow forecasts showing all projected expenses and income for the next 12 months to clearly understand when it might face protentional cashflow shortages. Otherwise, they risk spending cash now that will be needed to pay suppliers or Revenue in the future. In addition, unforeseen events (such as loss of a key customer or an unexpected bad debt) can negatively impact cash flows – there needs to be a cushion to ensure businesses can successfully trade through any disruption.

This cushion can be cash reserves, or access to bank lines of credit, overdrafts and short-term loans. A line of credit provides flexible borrowing up to a specified limit and is ideal for managing cash flow fluctuations. Short-term loans offer a lump sum with a fixed repayment schedule, useful for covering temporary cash shortages or unexpected expenses.

A strong relationship with your bank and understanding the documentation they require can facilitate faster approval of credit facilities, and it is essential to maintain accurate financial records and forecasts to demonstrate your repayment capacity. Presenting a clear business plan with cash flow projections will help ensure a timely approval of the credit you require.

What if your credit application is declined by your bank? Credit Review can help.
We provide an appeals mechanism for borrowers who have had their credit applications rejected by an Irish bank (AIB, BOI and PTSB). Our track record is strong: 8 out of 10 businesses we support get a credit solution from their bank. Our appeal process is informal, affordable, and available to all Irish SME and farm businesses. We can review requests for credit facilities such as overdrafts, term loans, invoice or asset finance up to a value of €3 million.

For more information on our independent appeals process and information services, visit creditreview.ie where you can request a call back, or call the helpline directly on 0818 211789