The Small Firms Association has welcomed a new report from the Department of Finance that claims that approximately 40% of small firms, including retailers, are seeking credit, of which 76% of applications had been approved by the banks.
However, Avine McNally, Acting Director, SFA, said that the survey illustrated a 'worrying trend', in that more conditions are being attached to credit approvals.
“It is critical that in providing finance to the small businesses that the cost of credit is not too high and that loan terms and conditions are clear and manageable and do not act as a deterrent for business survival and investment," McNally said.
McNally also noted that the majority of applicants (77%) who have been declined credit don’t agree with the decision. In addition, the time for a decision averaged 21 working days, with just over half of the applications processed within the target of 15 days.
“It is critical in rebuilding the small business banking relationship, that clarity is given around decision-making rationale and that process targets of 100% of applications being dealt with in 15 days and all declines being informed of their right of appeal are achieved swiftly.”
© 2013 - Checkout Magazine by Stephen Wynne-Jones