LE CHEILE CREDIT UNION (Athboy & Oldcastle)
SME BORROWERS - FINANCIAL DIFFICULTIES
Here at Le Cheile Credit Union (Athboy & Oldcastle), we appreciate the challenges that sometimes may face our members and their businesses. During the course of lending to businesses, our loans advisors make every effort to anticipate potential difficulties which could arise, however, we know that business and particularly cashflow can be fundamentally uncertain and that even the best laid plans do not always come to fruition exactly as envisaged, which can lead to loans 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.
If you ever anticipate such difficulties, please contact us as soon as possible. It is always far, far easier to find some flexibility to deal with a future potential problem than for one which has already materialised.
The Central Bank of Ireland has published Regulations for Business Lending to Small and Medium Sized Enterprises (SME Regulations). These regulations were designed to make it easier for SME borrowers to engage with their lenders and ensure that the whole process works in a fair and transparent manner, particularly if financial difficulties arise.
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 Le Cheile Credit Union (Athboy & Oldcastle) 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.
Le Cheile Credit Union (Athboy & Oldcastle) has developed a Standard Information Booklet for SME members in or facing financial difficulties which can be requested via email or over the phone.
SME members who are in arrears, or in danger of falling into arrears should call our Credit Control Officer on 046 9432432 or email info@lecheilecu.ie to arrange an appointment as soon as possible.
