That’s according to John Trethowan, head of the Credit Review Office. Speaking recently to government TDs he said that the banks have returned to being prudent “cash flow lenders”. 

He remarked that the “reckless lending days” of a few years ago were not likely to return any time soon. “Until such a time as someone encourages them to increase their return in equity… I can’t see things moving forward”, he said.

With banks being urged to keep a tighter reign on lending, Mr. Trethowan noted the knock-on effect this is having on Irish SMEs. He stated that “lack of capital, or equity remains the biggest challenge to the SME sector in Ireland”. 

Despite the ongoing need for small business loans to ease cash flow situations or purchase stock, figures from the Department of Finance show that 8 in 10 SMEs have reported improved turnover since April 2015.

If your SME is in need of short term finance for working capital, talk to Linked Finance today about how we can help you.

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