SMEs ‘don’t shop around for credit’

Solely relying on traditional bank credit will only inhibit growth and job creation in SMEs, a new survey has warned.

The study — carried out by market research company, Behaviour & Attitudes on behalf of leading SME funder, Bibby Financial Services Ireland (BFSI) — claims that nearly three quarters of Irish SMEs don’t shop around enough when seeking credit and that banks aren’t in a position to adequately finance the needs of the small business community.

“The traditional banking model is outdated and no longer in a position to adequately finance the range of varied funding requirements of SMEs,” according to BFSI managing director, Ronan Horgan.