Small and Medium Enterprise Borrowers
Republic of Ireland only
Important information for IBRC Small and Medium Enterprise Borrowers
The revised Code of Conduct for Business Lending to Small and Medium Enterprises (“the Code”) came into effect on 1 January 2012. The financial difficulties section of the Code sets out the policies and procedures which regulated entities must have in place for dealing with Small and Medium Enterprise borrowers (“SME borrowers”) in financial difficulties. IBRC will assist SME borrowers who are in financial difficulties to meet their obligations, or otherwise deal with the situation in an orderly and appropriate manner with due regard to the fact that each case of financial difficulties is unique and needs to be considered on its own merits.
The Code is available on the Central Bank of Ireland’s website at www.centralbank.ie.
IBRC understand that many SME borrowers are facing or are currently in financial difficulties. It is very important that you address the warning signs of financial difficulties in your business. We would like to assure you that we are committed to working in a positive manner with SME borrowers who are experiencing financial difficulties.
All SME borrowers of IBRC are invited to contact us to discuss financial difficulties or to arrange a review meeting.
The Code provides that a SME borrower must be classified as in financial difficulties where:
(a) the credit facility of the SME borrower is in arrears for three consecutive months;
(b) in the case of an overdraft credit facility, where the approved limit on the facility is exceeded by the SME borrower and remains exceeded for 90 consecutive days and there has been no engagement with the SME borrower.
‘Small and Medium enterprises’ are “enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding €50million, and/or an annual balance sheet total not exceeding €43million and shall include ‘smaller enterprises’”
IBRC has prepared an information booklet that sets out the process that IBRC has put in place to support SME borrowers in financial difficulties or those who are at risk of going into financial difficulties and to provide such SME borrowers with certain information as required by the Code. You will find the information booklet here.
Contact and Communication
You should contact us immediately if you are concerned that you are in financial difficulties or at risk of going into financial difficulties. Your Relationship Manager will advise you of the next steps in line with the procedure that IBRC has put in place for dealing with SME borrowers that are in financial difficulties or at risk of going into financial difficulties.
We will use the information you provide to us to assess your individual situation and work together towards agreeing an alternative repayment arrangement. There may be cases however, where IBRC will be unable to provide an alternative repayment arrangement.
Contact your dedicated Relationship Manager by calling +353 1 616 2000.