Standard Information for Business (SME) Lending

The purpose of this notice is to inform our business members about our SME lending services.
Micro, Small and Medium-sized Enterprise (SME) means an enterprise which:
– employs less than 250 persons
– has annual turnover not exceeding €50 million
– and has a balance sheet total not exceeding €43 million

In this context, an SME enterprise includes:

  • any farmer or a sole trader or business entity borrowing for the purposes of their farm, trade or profession, or
    business.
  • other members who borrow for a related business or enterprise purpose and who may be an employee in receipt of PAYE income.

If a farmer or sole trader applies for a personal loan for a car or home improvements this brochure does not apply. It only applies to loans for the purpose of the business or enterprise.

Cavan Credit Union are happy to lend to the SME sector. We have specialist staff who are trained and experienced in lending to this sector and the regulations which apply.

Download: Standard-Information-Booklet-for-SME-Lending

Background to SME regulations

New SME Regulations came into effect on 1st July 2016 to the extent that they apply to regulated
entities excluding credit unions. They came into effect in relation to credit unions from 1st January 2017.

The objective of the regulations is to strengthen protections for SMEs, while also facilitating
access to credit, by introducing specific requirements that regulated lenders must comply with.
These requirements include:

  • Giving SME borrowers greater transparency around the application process.
  • Providing SME borrowers with reasons for declining credit, in writing, that are specific to their application
  • Providing greater protections for guarantors.
  • Contacting SME borrowers who have been in arrears for 15 working days.
  • Warning SME borrowers if they are in danger of being classified as not co-operating.
  • Internal appeals panel.

If you want to contact us about applying for such a loan, or have an existing SME loan and wish to talk to us, please contact a member of our lending team who will be happy to help you out.
Our contact details are:

e-mail: loans@cavancu.ie
phone: (049) 433 1715

We apply a reasonable approach in relation to security based on the level of the credit being sought, the term of the loan as well as the overall risk profile.

At the time of or shortly after applying for any loan, we will give you a written statement of the terms and conditions of the loan if it is approved and you draw it down.

Cavan Choice Credit Union does not charge fees to assess or administer your lending. However third party expenses may be incurred in the context of your loan in some circumstances (e.g. legal fees, or valuation fees in some cases) and these will be payable by the borrower. Any such fees or expenses will be notified to you in advance.

Impact of Arrears on your credit rating and ability to access credit in the future:
Information with respect to arrears on your credit facility may be shared with a credit reference agency or central credit register (as required by law).
Your credit rating may be adversely affected.
This may impact your ability to avail of additional credit facilities in the future.

Info for SME Borrowers in Financial Difficulty

Many businesses face financial challenges from time to time. Market forces, cashflow issues and a host of other financial pressures can put stress on a business. At Cavan Credit Union, we recognise that it isn’t always easy, and we want to help where we can.

Dealing with financial problems in business can be daunting but tackling problems and seeking advice at an early stage can make a difference. At Cavan Credit Union, we are fully committed to working with you in attempting to find appropriate solutions as regards the loan you hold with us which may assist your business to get through a period of financial difficulties.

Download: SME-Information-Booklet-for-SMEs-in-Financial-Difficulties

This booklet outlines the approach and procedures of Cavan Credit Union when dealing with SME borrowers who are in financial difficulties and gives information on the various options available to SME Borrowers who are in financial difficulties. At all times, it is in your interest to engage with the credit union about your arrears or financial difficulties so that a suitable arrangement can be found.

The information above has been prepared to comply with the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium Sized Enterprises) Regulations 2015.
These regulations were designed to make it easier for SME borrowers to engage with their lenders and ensure that the whole process worked in a fair and transparent manner, particularly if financial difficulties arise.
We will provide you with a full copy of these regulations if you ask us.

If you would like more information please contact us today.

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