‘Trading conditions improving’ as SMEs seek less credit

Improved trading conditions have resulted in demand for bank finance among SMEs falling to the lowest level for two years.

The latest SME Credit Demand Survey conducted by research company Red C on behalf of the Department of Finance shows over the second and third quarters of this year, 36% of firms requested some form of banking credit; down by 4% on the preceding six months.

The figure are in line with late 2011 demand levels. They have largely been attributed to fewer SMEs needing help with their working capital levels and less need for support finance.