Businesses struggling to access credit from banks should contact the Credit Review Office

In the December 2009 budget, the Minister for Finance announced the setting-up of an office to help ensure that small and medium-sized enterprises (SMEs), sole traders and farm enterprises have access to credit from the banks who are participating in the NAMA scheme.

The setting up of the Credit Review office is a welcome step to support businesses who are struggling to access credit in these very difficult financial times. It is there to carry out an independent and impartial review of the bank’s decision and will accept applications from SMEs, sole traders and small and medium-sized farm enterprises that have had their application for credit refused or reduced or have had credit facilities withdrawn, and feel that the bank’s decision is unjustified.

It is vital the those businesses who have had applications for credit turned down use this review facility and be afforded every possible opportunity to access funding from our banks. Contact details and further information can be found on www.creditreview.ie

At present, the participating banks are those engaged with the review process are:

• Allied Irish Banks
• Bank of Ireland
• Anglo Irish Bank
• EBS
• Irish Nationwide Building Society

The lack of regulatory powers afforded to this office are of serious concern for me however. I believe it must be given mandatory powers to overturn bad decisions on the part of banks to ensure businesses can access much needed credit. At a time when we are pumping vast amounts of money into the banking system it is essential that credit begins to flow to businesses again.