ISME highlights lending shortfall

HALF of all Irish companies applying for banking credit have either had their loan requests denied or are awaiting a decision, the Irish Small and& Medium Enterprises Association (ISME) reports.

A report issued yesterday by the credit review office found that 70% of SME bank loan applications processed from April to September 2010 were approved. However, this figure falls to 50% when those applications still pending a decision are included.

ISME chief executive Mark Fielding said: “This 50% figure deteriorates for micro-enterprises, with 42% of companies fully approved. This is a long way from the nine out of 10 ‘successful’ applications as outlined by some banks.”