Credit Review offers a vital appeals service to businesses and farmers refused bank credit, writes Catherine Collins
Know a business that’s been refused credit recently? Credit Review can help.
Credit Review was set up in 2010 by the Minister for Finance Brian Lenihan to ensure viable businesses have access to credit from Irish banks.
The Credit Review appeals process allows businesses to have an independent review when a credit request is declined by a bank.
The appeal applies to new credit applications, existing facilities that have been reduced or withdrawn, or requests to restructure a credit facility.
The process is simple and affordable, and it is available to 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 €3 million.
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 may be increasingly important post-COVID, as business adapts to changing economic conditions.
Most importantly, SME and farm businesses are approved a lending or credit solution by their Bank in over 80 percent of the cases we support.
The Credit Review process
So, what happens when a business or farm applies to Credit Review?
When a business applies for a review, a reviewer, drawn from a panel of expert credit professionals familiar with the banking sector, is assigned to form an opinion as to whether the business is viable and will, in the future, have sufficient cash to repay the loan or meet restructuring obligations.
The reviewer contacts the borrower to discuss the case and better understand the business by 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.
The bank is also asked to provide details on how it views the business and, specifically, why it has refused to lend. Once the case is reviewed, Credit Review forms an opinion on the bank’s credit decision, which is sent to 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; and will signpost SMEs towards other supports that can help them to grow and develop their businesses.
Getting help from Credit Review
We encourage all business borrowers who feel they are having difficulty accessing credit to contact Credit Review.
In addition to our appeals process Credit Review operates a helpline service providing useful information and assistance over the phone and sometimes credit issues can be resolved without needing a formal appeal.
The Credit Review website also has a number of accessible, easy-to-understand, information notes on banking and credit issues that can help businesses successfully access credit.
For more information on our independent appeals process and information services, visit creditreview.ie or call our helpline on 0818 211789.
This article is sponsored by Credit Review
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