SMEs still not seeking credit despite upturn

Despite recent good news on the economic outlook, SMEs are not demanding more credit to any noticeable extent, according to a new report.

The report compiled by DKM economic consultants and the Irish Banking Federation, states that despite a recent modest upturn in the economy and the existence of a host of government funding initiatives and business supports, demand has not increased and the problem does not appear to be on the supply side.

The report identifies a number of concerns as persisting, including: legacy SME debt levels and balance sheet constraints; “a cautious and confused consumer”; and the significant reduction in retail sales.