The Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) and the Irish Banking Federation (IBF) have launched a joint initiative to improve business lending and kick-start economic recovery.
The Business Plan Guide, developed by Ireland’s four accountancy bodies, represented by CCAB-I, and IBF, will assist Irish Small-and-Medium sized Entities (SME) in developing their business plans as part of applications to banks for credit.
The guide contains practical support for local businesses to improve the quality and success of loan applications and speed the lending decision process.
CCAB-I and IBF said the aim of the guide is to “encourage the survival and growth of Irish SMEs by increasing the chances of those businesses accessing capital, which has been one of the major challenges throughout the recent economic climate”.
CCAB-I chairman and Chartered Accountants Ireland president Austin Slattery said due to economic woes in Ireland “small and medium sized indigenous businesses have suffered more than most”.
“Availability of credit and access to capital are crucial to the survival and development of business. Our own members across business and practice tell us this is one of the most challenging aspects of the current economic climate,” Slattery explained.
“Whilst the state and the banks have made a certain amount of capital available, it is clear that more needs to be done. Accountants need to play our part and provide leadership in addressing this issue. There is now, more than ever, an imperative for lenders to understand businesses and their needs.”
He added that the Business Plan Guide provides an agreed upon “common language, framework and approach”.
“We have agreed what core information must be included in business plans for small businesses. Both sides now have clear expectations of what is required, which must improve the quality and success of loan applications and speed the lending decision process.”
CCAB-I comprises the four main accounting bodies in Ireland – Chartered Accountants Ireland, the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants and the Institute of Certified Public Accountants.