This article is from page 56 of the 2009-07-21 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 56 JPG
SMALL businesses allowed the Celtic Tiger to grow and prosper and now they have to be supported.
That was the message from a finan- cial services expert in the wake of the Government Independent Review of Credit Availability for Small and Medium Sized Enterprises (SMEs).
Graham Byrne, Bibby Financial Services Ireland sales director, said that while it is welcome news that the Government has realised the 1m- portance of freeing-up credit for the SME sector, the report highlights that there is more to be done.
“Irish SMEs underpinned the growth of the ‘Celtic Tiger’ and it’s vital we continue to support them while Ireland, like the rest of the world, strives to navigate its way out of the recessionary maze.
“The good news is that the report shows there has been some improve- ment by the major lenders to assist the SME sector, however, anecdotal- ly we know this continues to fall well short of the mark and more measures are needed to ensure SMEs have adequate finance to enable them to weather the current economic SKeyu 00
Byrne said he believes that the Government needs to go further and “build its recommendations into ac- tions, following some of the steps taken by other European Govern- rns NLS
Such actions, he said should ensure a stricter enforcement of late pay- ment legislation, setting up a task- force to assist SMEs making funding applications, a viable and affordable credit insurance scheme and _ the introduction of a government loan guarantee scheme for SMEs.
“With the report highlighting that refusals for new credit are predomi- nately related to working capital re- quirements to address revenue cuts and a slow down in collecting out- standing payments from debtors, it’s clear there is a growing appetite for greater funding flexibility.
‘Indeed, with Bibby’s own research showing the recession has led 69 per cent of business owners to keep a closer eye on their finances, it’s 1m- portant SMEs are aware of all the options available as the economic forecast improves.”
Byrne said that alternative forms of funding outside of traditional overdraft facilities, such as invoice finance, “can provide a vital and ef- fective way of managing cash flow. Indeed, these alternative solutions continue to grow in popularity. Last year saw 52,000 businesses in Ire- land and the UK use invoice finance and this looks set to grow throughout 2009 as increasing numbers of Irish businesses realise it’s an acceptable and credible form of business finance and one worth embracing.”