Expert Help from Credit Review to Appeal Bank Credit Refusals
The Covid-19 pandemic has had a huge impact on small businesses and farms in Ireland. As businesses reopen from lockdowns, or try to develop new markets and products to survive and grow, access to finance will be extremely important and, in some cases, critical to survival.
For most small businesses, the main source of external funding is bank finance – typically overdrafts, stocking and term loans or debtor finance. Some businesses will experience difficulty in getting support from banks for a variety of reasons, which is where
Credit Review can help. Set up by the Minister for Finance in 2010, Credit Review’s mission is to ensure that viable businesses have access to credit.
Simple Appeals Process
We provide a simple, effective and affordable appeals process for SMEs and farm businesses who have either been refused credit or have had existing facilities (up to a value of €3m) reduced or withdrawn. We have a team of independent SME and farm lending experts based around Ireland. This team works specifically on credit issues faced by SMEs and farms that are viable, but have difficulty getting credit from their banks.
We don’t just look at credit applications for new or additional funding – we also review restructuring proposals, whether the proposal is made either by the borrower or the bank. This will be increasingly important in 2021, as many SME businesses who availed of the system-wide Covid payment breaks will now need to restructure their debt going forward. Participating banks whose credit refusals can be appealed to Credit Review include AIB, Bank of Ireland, PTSB and Ulster Bank. In nine out of 10 cases that we support, the bank will make credit available.
Credit Experts
When an SME or farm applies to Credit Review, we assign a Reviewer to work with the borrower to understand their business and to address the issues raised by the bank when refusing the application. Our Reviewers are professional, independent credit experts who know and also understand how the banking sector works, and what it takes to run a successful business.
Credit Solutions
Borrowers who have used the service report that the process is simple and easy to use. The Reviewers are approachable and take a genuine interest in doing their best to help the business achieve its objectives. In one out of every two cases that come to us, we are able to suggest a credit solution that works for both the business and the bank. The Reviewer contacts the borrower and will look at track record, existing debts, future potential, management and markets, as well as the reason for the new credit application. The bank is also asked to provide details on how it views the business and why it has refused to lend. The Reviewer then forms an opinion as to whether the business is viable and if it will make enough cash to pay back the loan.
We are usually able to suggest a credit solution that works for both the business and the bank. Where the Reviewer is unable to recommend the credit facility requested, we will suggest a roadmap to make future bank applications more likely to succeed. In some cases, bank funding may not be the solution – in which case the Reviewer will highlight other alternative supports that may help the borrower and the business.
Client Focus
Credit Review has a strong client focus and aims to be as responsive as possible to the needs of our users. Our helpline responds to calls promptly and can often solve issues without the need for formal appeals. Our Reviewers are happy to discuss cases with applicants at a time that suits them, often outside of traditional business hours.
Credit Review’s team are experts in reviewing credit applications and restructuring proposals to help SMEs through the challenges of Covid-19. In addition to reviews and appeals, Credit Review also provides accessible, easy-to-understand information notes on banking and credit issues on our website.
Contact CreditReview.ie and talk to one of our professional Reviewers so that you are fully informed on the credit management issues relevant to your business.
To get help, just contact the Credit Review Helpline at (087) 121 7244 or Freephone 1850 211 789.