Credit Review ensures viable SMEs and Farms have access to Bank Credit

Catherine Collins, Head of Credit Review, explains the function of the organisation and how it can assist borrowers when an application is denied by a lending institution

Who we are

Credit Review was set up by the Minister for Finance to offer SME and farm businesses an independent review when a credit request is declined by a bank. The review applies to new credit applications, existing facilities that have been reduced or withdrawn, or requests to restructure a credit facility. If we believe you have a viable business and can repay the credit you have requested, we will recommend the bank provides it. In over 80% of the cases we support, the bank agrees to do so, and businesses are approved a lending or credit solution by their bank.

The appeal process, which is informal and affordable, is available for all Irish SME and farm businesses. We can review requests for new credit facilities such as overdrafts, term loans, invoice or asset finance up to a value of €3million. Participating banks include AIB, Bank of Ireland, PTSB and Ulster Bank.

Restructuring proposals can also be appealed, whether the restructuring has been sought by the borrower or the bank — restructuring is increasingly important in the current volatile business environment, as businesses and farms adapt to changing economic conditions. Refinance requests will be important in 2023 following the exit of Ulster Bank and KBC from the Irish market — businesses seeking to refinance with a different provider remaining in the Irish market (AIB, BOI and PTSB) are entitled to appeal credit refusals from those banks.

So, what happens when a business or farm applies to Credit Review?

Once you send in your application, and the team gets an overview of your case from the bank, a Reviewer is assigned to assess whether the business is viable and will have sufficient cash to repay the loan or meet restructuring obligations. Our Reviewers are expert credit professionals located across Ireland, with frontline SME and farming finance experience.

The Reviewer will discuss the case with you to get a better understanding of the business, looking at its track record, existing debts, future potential, management and markets, as well as the reason for the new credit application or restructuring request.

During the process the bank is asked to provide specific details to Credit Review on how it views the business and why it has refused to lend, and this is shared with you.

Once the case is fully reviewed, we form our opinion on the bank’s credit decision, which is provided to both the bank and the borrower.

In most cases that come to Credit Review, we can support the borrower by recommending a credit solution that works for both the business and the bank. However, 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. We will also signpost SMEs towards other government supports that can help them to grow and develop their businesses.

Getting help from Credit Review

Despite global economic difficulties impacting Irish businesses, many have demonstrated great resilience in facing Covid, Brexit and cost/inflationary challenges, and will continue to survive and thrive. Access to bank credit can support and accelerate their recovery and growth.

By working though their difficulties with their funders and banks, and availing of all government supports, businesses that are vulnerable but viable in the medium to longer term can get back on the road to growth. Credit Review can help with restructuring proposals in these cases.

We encourage all business borrowers who feel they are having difficulty accessing credit, or restructuring credit facilities, to contact Credit Review. In addition to our appeals process, Credit Review operates a helpline service providing useful information and assistance over the phone to SMEs and farmers. Sometimes credit issues can be resolved without needing a formal appeal. The Credit Review website also has a number of useful, easyto-understand notes on banking and credit issues that can help viable businesses successfully access credit.

For more information on our independent appeals process and information services, visit creditreview.ie or call the helpline on 0818 211 789 or 087 121 7244