My Business is facing challenges

Talk to us.

We are fully committed to working with you to provide support and advice.

If your Business is declined for finance, some of these options may be available to you.

SME Credit Appeals
Not Happy With Your Credit Decision?

AIB has an internal appeals process for SMEs. The process is available for all loan, overdraft, asset finance and invoice financing products irrespective of facility amount.

Instances where you may appeal include:

You feel you have been unfairly refused a request for a facility

You believe you have been unfairly offered a smaller facility than requested

Existing credit facilities have been reduced or removed

We have attached terms and conditions to the facility such that the facility cannot be accepted

We have not offered you an alternative arrangement in situations where you believe you are entitled to the offer of an alternative arrangement or,

We have offered an alternative arrangement that you are not prepared to accept or

We have classified you as not cooperating,

We require a special term or condition in order to provide you with an alternative arrangement, including with respect to security and guarantees required by us.

This appeal must be made directly in writing to the Credit Appeals Officer, PO Box 11826, AIB Bankcentre, Ballsbridge, Dublin 4, within 20 days, stating the basis of your appeal.
Government Credit Guarantee Scheme
The Government Credit Guarantee Scheme (GCGS) is an initiative by the Department of Jobs, Enterprise & Innovation (DJEI).

Objective:

Encourage additional lending to SMEs through provision of a level of guarantee against losses on qualifying loans

Eligibility:

Credit applications for loans or performance bonds (for new investment) that have already been declined by AIB.

Direct applications for a facility under the Scheme cannot be processed. The initial credit application must be declined under our normal credit assessment criteria before being considered for Scheme eligibility.

The scheme is targeted at commercially viable SME businesses that do not secure credit facilities due to:

Insufficient collateral (i.e. security) available for the facility or

Growth/expansionary SMEs which due to their sector, market or business model are perceived as a higher risk or

SMEs seeking to refinance due to the SME's bank exiting the Irish SME credit market.

The Scheme provides a State guarantee of 75% on eligible loans, and it is available for a maximum period of seven years. Borrowers will pay a 2% premium per annum on the outstanding loan principal to the Government’s nominated operator.

If you require more information on the Credit Guarantee Scheme, please contact your local AIB Branch or talk to your Relationship Manager.

For criteria and more information on the Government Credit Guarantee, see http://www.djei.ie/enterprise/smes/creditguarantee.htm
Microfinance Ireland

Where we decline a request for credit, we will advise you directly, giving you a clear reason for our decision and making every effort to work with you to find an alternative solution.

In the event that we are unable to find an alternative solution, you may be eligible for a Microfinance Ireland loan.

Microfinance Ireland, an initiative set-up by the Irish Government under the Action Plan for Jobs, offers loans from €2,000 up-to €25,000 to both newly established and growing micro-enterprises (less than €2million turnover and fewer than 10 employees). Businesses across many industry sectors are eligible to apply for a number of purposes such as start-up costs, stock, working capital and capital expenditure.

In the first instance, you should approach your bank for credit. In the event that credit is declined, AIB can refer your contact details to Microfinance Ireland for a potential loan application with your permission.

As well as AIB, Microfinance Ireland also works with a number of application partners. Both Local Enterprise Offices and Local Development Companies can offer pre-application training and guidance in preparing loan applications for Microfinance Ireland funding. Post-application mentoring can also be availed of for new and existing businesses at no cost to approved Microfinance Ireland clients.

For more information on Microfinance Ireland you can ask a member of the AIB SME team or alternatively visit Microfinance Ireland’s website here.

Some of our business customers are experiencing financial/cashflow pressures, with decreasing revenues and increasing costs. You could also be exposed to customers or suppliers who may be experiencing their own issues. We are fully committed to working with you to provide support and advice. Our process involves the following steps:

Step 1: Communication – talk to us.

It is very important to address the early signs of financial stress in your business. The sooner you contact your Relationship Manager or local AIB branch, the easier it will be for us to help.

It is in your interests to engage with us in relation to your arrears or financial difficulties. It is only with your engagement and cooperation with us, that a solution may be reached.

If you are in financial difficulties, we will arrange for one of our teams to work with you to explore potential ways of resolving the situation and will write to you informing you of their contact details.

We will consider any financial difficulties situation sympathetically and work with you constructively to explore appropriate solutions. In most cases, by continuing to work together, we will find an acceptable alternative way forward.

Step 2: Financial Information – understanding your finances.

The type of financial information required by us to make an assessment for an arrangement will vary depending on the nature and size of a business, but will typically include the following:

Documentation Required	>Why AIB needs this information
1. Financial Information/Projections Latest Audited/Certified Accounts as appropriate Income & Expenditure Statement/Trading Profit & Loss Account and Balance Sheet Up to date management accounts and cashflow statements to reflect the current trading period Up to date aged list of debtors/creditors Financial and cashflow projections and underlying assumptions (including any evidence of agreed orders/contracts).	This information enables us to gain a real insight into how your company: has performed in the past, performing currently, is likely to perform in the future. Short-term cashflow projections are of particular importance in the current environment.
2. Details of current tax position (Tax Clearance Certificate where appropriate)	This will allow us to understand your current tax situation and any arrangements that may be in place with the Revenue Commissioners.
3. Up to date Asset/Liability profile of the business and owners/promoters.	This allows us to assess the overall financial position of the company and its business owners/promoters.
4. If required, details of your security position.	You may have provided security across a number of facilities which is relevant to the assessment of your situation.
5. Other information may be required as relevant to an individual case.	Your Case Manager will advise you of further information or clarifications we may require to ensure fully understand your particular financial requirements.

To enable us to prepare in advance of our meeting with you, we require a business plan and cashflow. You may be also be asked to demonstrate in-depth knowledge of your competitive environment in which your business operates.

Step 3: Assessment – assessing your financial situation.

The information you provided will be used to assess your situation and explore various options to try to resolve the situation. The assessment will take your full circumstances into account, including overall level of borrowings, repayment capacity and previous repayment history along with your security position.

The assessment process for an alternative arrangement is not expected to take longer than 15 business days from the date of receipt of all of the information/documentation requested. If our decision takes longer than 15 business days, we will write to you to advise you how long it will take and the reasons why.

We may offer you an alternative arrangement to assist you to resolve financial difficulties subject to you meeting our criteria. The decision process will take into account your full circumstances such as, where applicable:

the overall level of borrowings with both us and any other financial institution
the current and future overall repayment capacity
previous repayment history
the existing security position with regard to your borrowings
the viability of the business,
your co-operation and the information you provide to us.

Throughout the assessment process, we will continue to work constructively with you to develop a sustainable solution for the business where possible. To help us do this, it is important that you:

Act in good faith
Keep to your agreements with us
Keep us informed about developments or changes in your circumstances
Carefully consider what our own and any independent advisors say
Be prepared to make any necessary changes in a timely manner

Step 4: Resolution.

Once a decision has been reached to offer you an Alternative Arrangement option, we will write to you outlining all, or any, revised terms and applicable fees and charges.*

It is important:

that you are fully aware of the details and implications of any new repayment arrangement before you commit to it. You may seek independent legal/financial advice in this regard.
to note that alternative arrangements may be affordable for your business in the short term but could be more expensive in the longer term.
that you keep up the terms of any agreed arrangement, or advise us immediately if there has been any change in your financial circumstances. Not telling us about problems could impact negatively on other facilities you hold with us, such as current accounts, credit cards, direct debits etc.

Where we decide it is not possible to offer you an alternative arrangement we will advise you directly give you clear reasons for our decision an the next steps we may take.

Step 5: Appealing a decision.

AIB has an internal appeals process for SMEs in financial difficulties. The process is available for all loans, overdraft, asset finance and invoice financing products irrespective of facility amount.

If your appeal through the internal credit appeals process is unsuccessful and the facility is for between €1,000 and €3,000,000, you may refer your case to the Credit Review Office.

The type of financial information required by the Bank to make an assessment for an arrangement will vary depending on the nature and size of a business, but will typically include the following:

More Information.

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Lending to Small and Medium Sized Enterprises Regulations 2015

SME Lending Regulations

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Useful contacts.

Central Bank – www.centralbank.ie
Chambers Ireland – www.chambers.ie
Credit Review Office – www.creditreview.ie
Department of Jobs, Enterprise and Innovation - www.djei.ie
Insolvency Service of Ireland - www.isi.gov.ie
Irish Business and Employers Confederation (IBEC) – www.ibec.ie
Irish Small and Medium Enterprises Association (ISME) – www.isme.ie
Microfinance Ireland - www.microfinanceireland.ie
Revenue Commissioners – www.revenue.ie
Small Firms Association – www.sfa.ie

*Excess balances attract an annual Surcharge rate of interest which is levied on the entire excess balance, in addition to the annual interest rate applicable to the account. You may also incur Referral Item or Unpaid Item charges. Further details on these charges are available in your credit agreement or if applicable, in the ‘Business Fees and Charges’ brochure which is available in all branches and online at www.aib.ie. You can avoid incurring further surcharge interest by clearing the excess balance, ensuring that all future repayments are made when due and that your current account operates in credit or within your approved overdraft limit. You can avoid unnecessary charges for unpaid cheques, standing orders and direct debits by ensuring that there are sufficient funds in your account to pay these items when they are presented, and also by ensuring all cheques which you draw on the account, or which you lodge to the account, are drawn correctly.

If you do not adhere to the terms of your credit agreement while in financial difficulties it may affect your credit rating which may in turn limit your ability to access credit in the future.

Data relating to your arrears may be shared with the Irish Credit Bureau where permitted by contract and will be shared with a credit register if required by law.

If you own a micro-enterprise (turnover less than €2m and fewer staff than ten), you may be eligible for a Microfinance Loan. Find out more at www.microfinanceireland.com

Not Cooperating

It is vital that you co-operate with us in relation to your current financial situation.

Where you fail to co-operate, you will be classified as not co-operating which may have the following implications:

- we will not be able to assess you for an alternative arrangement; and

- we may take legal action immediately. Where legal proceedings are initiated, you will incur legal costs. Should it be necessary to take legal action to enforce security it is important to be aware that where security is realized, you will remain liable for any outstanding debt, including any accrued interest, charges, and other costs related to the realisation of security including, where applicable, legal and selling costs.

Under the SME Regulations 2015, you can only be classified as not co-operating when:

a) you fail to make a full and truthful disclosure to the bank of the information required by the bank to assess your financial situation, within the timeframes specified by the bank, and

b) a warning letter that you will be classified as not co-operating has issued to you and you have not carried out the action(s) specified in the letter within the advised timeframe.

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Cashflow Planner

This is a powerful financial planning tool and should form part of your business budgetary process. Use our cashflow planner to manage your business finances.