Q1’21 Bank Watch Report
This week ISME released their Bank Watch report from Q1 2021. This latest report finds SME demand for credit continues to rise, while loan refusal rates remain steady and similar to Q4’20.
In Summary the report finds:
- Demand for credit is at 43%, up 14% from Q4’20.
- Loan refusal rates decreased slightly from 37% to 35%, with 46% being successful, down 7% from Q4. 19% were partially successful, compared to 10% in Q4.
- Just under 6% availed of peer-to-peer funding.
- 19% waited longer than 4 weeks between permission and drawdown.
- 51% stated that the bank was not helpful in their request for acquiring finance.
- 71% of SMEs believe banks are making it more difficult for SMEs to access finance.
- 13% of SMEs pay over €5,000 in Bank Charges (excluding interest).
A troubling figure for SME’s in Ireland is the fact that 71% believe banks are making it more difficult for SME’s to access finance. In these current economic times it is vital for SMEs to have access to finance.
We must remember that SME employment accounts for 65% of total employees in Ireland (Source: Seanad Public Consultation on Small and Medium Sized Businesses Report 2019).
It is vital that SMEs are supported through this crisis in order to survive and thrive once again.
Download ISME’s full report here