SME - Financial Difficulties

SMEs Experiencing Financial Difficulties

In West-Midlands Credit Union, we appreciate the challenges that sometimes may face our members and their businesses. During the course of lending to businesses, our lending team makes every effort to anticipate potential difficulties which could arise. However, West-Midlands Credit Union recognises that it is probable that some businesses will experience cash flow difficulties from time to time, that could lead to their loan falling into arrears.

The longer the term of the loan, the greater the probability that something unexpected will happen in the business. While we hope that our members' business circumstances will always change for the better, we accept that there may be instances during the term of the loan where some businesses will experience financial difficulties that affect their ability to meet their loan repayments as expected.

The Central Bank of Ireland has published Regulations for Business Lending to Small and Medium Sized Enterprises (SME Regulations). This booklet outlines how West-Midlands Credit Union deals with SMEs who find themselves facing or experiencing financial difficulties. These regulations became applicable to Credit Unions on 1st January 2017.

The Objectives of SME Regulations;

• A clear definition of the circumstances which define when an SME is regarded as “in financial difficulties”.

• Facilitate access to credit for sustainable and productive business propositions.

• To promote fairness and transparency in the treatment of small to medium enterprises.

• To ensure a structured approach exists that the member understands at the outset. The aim is that West-Midlands Credit Union will assist the member and the business to meet their obligations where possible.

• To outline the communication and information requirements when the SME is in financial difficulty.

Ultimately, we want to assist members to resolve their financial difficulties and find a way to get them back on a repayment plan that is sustainable and will allow the member's business to prosper and grow.

For more information please call to the Credit Union for a copy of our Standard Information Booklet for SME Borrowers in financial difficulties or alternatively use PDF format.

Download SME Financial Difficulties (268kb)

SME members who are in arrears, or in danger of falling into arrears should call our arrears support unit on 0818 246 497 or email asu@wmcu.ie to arrange an appointment as soon as possible.

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