Inertia towards financing options is affecting Irish SMEs...
At the launch of the Nationwide Alternative Sources of Finance Expo in Dublin, ISME CEO, Mark Fielding called on the Government to prioritise the financial requirements of SMEs in the post-recession era and assist in the cultural change from Bank-only financing to the many alternative sources available. The nationwide expo will take place between the 11th of June and the 2nd of July. (List of venues and providers below)
"We in ISME are proud to deliver the Expo nationwide so that our SME owners and managers can get first-hand information on the range of finance available today. From crowd funding to invoice finance and from microfinance to larger loans from the new Strategic Banking Corporation, the Expo promises to expand the knowledge and availability of finance for business," Fielding said.
"For far too long the main Irish banks have had no competition for SME funding resulting in Irish business being the highest bank-borrowed across the EU28. 60% of Irish SMEs use bank borrowings, significantly higher than the EU-28 average of 39%. In addition there is an increasing emphasis on improving working capital and the incidence of late payments can cause significant problems. The Expo will show the SME owner the alternatives to the traditional methods, to finance the next phase of their development."
The Expo will allow participants hear from and network with ten (10) providers of alternative sources of finance in a single venue. The events will be participative and informative, open to all SME owner/managers.
"Irish SMEs are significantly more reliant on bank overdrafts, credit lines or credit card overdrafts. As these forms of credit are essentially short term funding sources, this pattern leads inevitably to financial fragility and a situation of higher costs and higher reliance on banks who cannot be relied on and who do not have the expertise to properly assess SME risk. Therefore, alternative sources must be used", concluded Fielding.
Commenting on the launch Ronan Horgan, Managing Director Bibby Financial Services Ireland said:
‘Inertia towards financing options is affecting Irish SMEs. They have been too reliant in the past on the traditional banking products and they really need to look at all the funding options available for their businesses to help them grow. There are plenty of options out there to meet their needs outside of Bank finance.
‘The economy is showing signs of growth and businesses are looking to grow with the help of non-Bank products like invoice finance – that are available to fill the gap left by more restricted Bank terms. However, many Irish businesses are lagging behind other countries in terms of utilising these various forms of finance, most likely because of a lack of research and inertia when it comes to new funding options”
'We welcome the ISME EXPO roadshow which will help in educating SMEs and making them aware of the different sources of finance which are available to them in the Irish market.’
ISME is the only independent voice of Small & Medium business in Ireland, representing in excess of 9,500 members across all sectors. The Association is owned and run by owner managers and is independent of big business, government and unions; the TRUE voice of the Irish SME. www.isme.ie
PARTICIPANTS: Strategic Banking Corporation of Ireland, Grid Finance, Credit Review Office, MicroFinance Ireland, Bibby Financial Services, Linked Finance, Tower Trade Finance, Credebt Exchange , Duff & Phelps, IPSA.
VENUES:
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11th June - Red Cow Moran Hotel, Dublin 6-9pm
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16th June - Hotel Kilkenny, Kilkenny 9.30-12.30pm
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16th June - Silversprings Hotel, Cork 6-9pm
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17th June - The Strand Hotel, Limerick 6-9pm
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23rd June - The Clarion Hotel, Sligo 6-9pm
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24th June - The Crowne Plaza, Dundalk 6-9pm
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1st July - Connaght Hotel, Galway 6-9pm
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2nd July - Crowne Plaza, Dublin (Northwood)6-9pm
Article Published: 28/05/2015