• Ten Providers in one venue to meet SMEs.
• Cultural change required in SME financing.
Tuesday, 19th May 2015.
At the launch of the Nationwide Alternative Sources of Finance Expo in Dublin today (19th May), ISME CEO, Mark Fielding called on the Government to prioritise the financial requirements of SMEs in the post-recession era and assist in the cultural change from Bank-only financing to the many alternative sources available. The nationwide expo will take place between the 11th of June and the 2nd of July. (List of venues and providers below)
“We in ISME are proud to deliver the Expo nationwide so that our SME owners and managers can get first-hand information on the range of finance available today. From crowd funding to invoice finance and from microfinance to larger loans from the new Strategic Banking Corporation, the Expo promises to expand the knowledge and availability of finance for business,” Fielding said.
“For far too long the main Irish banks have had no competition for SME funding resulting in Irish business being the highest bank-borrowed across the EU28. 60% of Irish SMEs use bank borrowings, significantly higher than the EU-28 average of 39%. In addition there is an increasing emphasis on improving working capital and the incidence of late payments can cause significant problems. The Expo will show the SME owner the alternatives to the traditional methods, to finance the next phase of their development.”
The Expo will allow participants hear from and network with ten (10) providers of alternative sources of finance in a single venue. The events will be participative and informative, open to all SME owner/managers.
“Irish SMEs are significantly more reliant on bank overdrafts, credit lines or credit card overdrafts. As these forms of credit are essentially short term funding sources, this pattern leads inevitably to financial fragility and a situation of higher costs and higher reliance on banks who cannot be relied on and who do not have the expertise to properly assess SME risk. Therefore, alternative sources must be used”, concluded Fielding.