| FARM BUSINESS CUSTOMERS MUST HAVE MORE OPTIONS FOR ACCESSING CREDIT
Commenting after a series of regional meetings between IFA, other small business representatives and the Department of Enterprise, IFA Deputy President Eddie Downey said that farm business customers must have more options for accessing and restructuring credit than are currently available.
Mr Downey said, “Due to the difficulties in the banking sector, there has been a significant reduction in the level of competition in Irish banking. The Government must ensure, through its intervention in the domestic banking market, that there are options for customers to access credit, whether through their existing bank or by moving their business between banks, if necessary.”
He continued “Farm businesses have continued to invest and pay back their borrowings during the downturn. While there is a recovery in prices for some sectors in 2010, it remains vital that the banks continue to restructure loans, as many farm businesses continue to experience cashflow pressures due to continuing price volatility. In addition, the banks must now be prepared to extend new lines of credit for businesses that are looking to expand.”
“The cost of credit has increased for banks and customers. The banks must offer the most competitive rates to farm and other small businesses and not exploit good customers through subsidising other loss-making divisions.”
Mr Downey concluded, “Banks must improve their communication with customers and increase the level of expertise at branch level for loan applications. Where an application for credit is requested, the banks must do more to assist the customer on the information required, the appropriate loan product and how an application could be successfully made. In too many instances there are examples of a customer making a loan enquiry to be told immediately that they would not get credit, and so no formal application is pursued.”
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Thursday, 02 September 2010 11:58