It found that 43pc of respondents to the online survey conducted in January felt that credit availability is now worse than six months ago while 54pc felt that conditions are the same and just 3pc of respondents felt it has improved. Many respondents consider the effect

of the current banking situation on trading and business operations to be 'serious' with 29pc of respondents feeling that their businesses were at risk of closure. The situation is more serious for smaller or micro businesses that have less than 3 employees as 58pc of them said they were more at risk of losing employment over the coming 6 months. Almost half of respondents indicated that the situation is serious (34pc) or very serious (15pc) and over half of respondents said they needed a minimum of E15,000 in working capital requirements.

Half of the respondents said that their businesses were curtailed by banking restrictions. The most common means of curtailment was by bank overdraft/bank loan restrictions, also additional charges, no processing of loans and higher levels of security demanded. Other sources of credit were predominantly Credit Unions, CEB and private investors.

 

Commenting on the survey the Chairman of the CEB Network, Michael Tunney, said, "We asked the respondents what, if any, were the other credit issues that you have experienced?" I think a sample of the answers tell their own story. They include;

 

"My bank simply does not care or understand. I have a small Business for 10 years, with a steady sales sheet that has huge room for growth. I recently moved premises and bought all my own equipment. I ask for and increase in my overdraft facility, I was refused and also my overdraft taken away. I feel very let down by them as my problem is simply my customers have not paid me on time, but the difference is I know my customers,

I know I will get my money, it may be late but it will come. My bank should realise from past transactions when the bulk of my lodgements are made and the overdraft facility is vital for my business , but, No ,it's better for them to charge me a an unpaid transaction fee . My business needs an overdraft facility or Business Loan of 1000 Euro for approximately 3 yrs, until I have my Equipment loans paid off."