Hi ONQ,
it must be very frustrating as an SME to see that despite all the money we've put into our banks that credit is not flowing into the sector that produces the most wealth for this country. Having said that, I think the banks are in a bit of a bind...the last thing they want to have to do is defend is why they threw good money after bad if things go wrong. We are in an open, free market where any foreign bank can open up shop tomorrow to fill this market if they wish, but they are not doing so. We have to ask why this is the case. Are there too few viable businesses to lend to to make it worth their while? A number of foreign owned banks actually pulled out of Ireland and the only ones left are there to pull in nervous depositors.
Also, you'd have to ask yourself if you were in charge of the purse strings in one of the banks would you be willing to lend in this stage of a recession? Even though it might be the "right" thing to do it may not be the best thing to do financially.
IMO there are plenty businesses out there that need to fail...the types of businesses that could only ever survive in a celtic tiger boom. It's going to be back to basics for a lot of other businesses with a focus on less borrowings up front.
Hi Firefly,
You have no idea how frustrating it is.
Our big problem nationally is the public service wage bill and the cost of our health care - but tax from public servants help pay our way - we cannot simply "et them all go!"
I agree a major problem with small businesses may be labour costs, but the problem for a worker is the cost of living.
I agree that the banks are easy targets and that in and of itself this may be distracting us from an even bigger picture - the profits currently being made by landlords and retailers on the back of an economy in recession.
You could add to this the criminals who simply haven't paid people what their owed, and those more unfortunate who cannot pay because of their own misfortune financially.
But to back to my original point, I am not even talking about large business loans - I am talking about loans in the €20K-€300K that would allow persons who are in stable well paid employment to improve their home, buil a new home or upgrade their business premises.
Relatively small, low risk amounts when measured against turnover and annual profits, but they are amounts which they cannot produce at the moment.
I don't know why foreign banks aren't coming in here to offer to provide and service these loans - perhaps another poster could assist.
All i know is that people who would under any circumstances be considered "good risks" are not getting loans.
This practice is holding back this nation from recovering.
That's very hard to accept.
ONQ.