Tánaiste publishes SME Credit Demand Survey for 2025
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From: Department of Finance
- Published on: 4 June 2026
- Last updated on: 4 June 2026
- More than 1,500 businesses provide insights on SME credit demand
- 76% of SMEs reported making a profit during 2025, up from 73% in 2024
- Over half of respondents reported increase in turnover last year
- Three in ten SMEs indicated that they plan to invest in Artificial Intelligence over the next three years.
- Tánaiste: Survey highlights the resilience of Ireland’s SME sector
Tánaiste and Minister for Finance, Simon Harris TD, has today (June 4th ) published the SME Credit Delivery Survey for 2025.
Conducted by Ipsos B&A on behalf of the Department of Finance, the survey is the most comprehensive assessment of SME credit demand in Ireland, drawing on insights from more than 1,500 businesses through in-depth interviews.
The survey provides a detailed picture of the SME landscape in Ireland, with micro, small and medium-sized enterprises represented in line with their share of the overall SME population.
The findings show improved turnover and profitability among Irish SMEs in 2025, alongside lower demand for bank finance and growing interest in investment in Artificial Intelligence.
Key results include:
Credit Demand and Finance
- 16% of SMEs surveyed applied for bank finance during 2025, down from 20% in 2024. Of those seeking finance, more than one-third (38%) cited business expansion as the primary reason for applying.
- 7% of SMEs applied for government financial support or other non-bank finance, unchanged from 2024.
- 82% of SMEs that did not apply for credit reported having sufficient internal funds and therefore did not require external finance.
- Among finance applicants, 38% were required to provide collateral, down from 40% in 2024. Buildings, machinery and equipment, cash and land were the most common forms of collateral. On average, collateral represented 54% of the loan amount.
- The average value of a credit application for new finance increased to €349,114 from €260,059 in 2024.
- Outstanding debts owed to retail banks accounted for almost three-quarters (73%) of all debt, while other non-bank lenders accounted for 26%. The proportion owed to credit unions remained negligible.
Business Performance
- More than half of businesses surveyed (51%) reported increased turnover during 2025, up from 44% in the previous survey. A further 31% reported no change in turnover, while 18% reported a decrease, down from 20% in 2024. All business sectors recorded an improvement in turnover compared with the previous year.
- 76% of SMEs reported making a profit during 2025, up from 73% in 2024. Eight per cent reported a loss, while 14% broke even.
- The proportion of SMEs exporting increased to 21%, compared with 19% in the previous year.
Investment and Growth
- More than half of SMEs (56%) identified uncertainty as a barrier to investment.
- At the same time, 48% indicated that they are willing to expand their business even if it involves greater risk or challenge, while 29% disagreed with this statement.
Artificial Intelligence
- Two-thirds (67%) of SMEs stated that they did not use Artificial Intelligence in the production of goods or provision of services during the period 2023–2025.
- However, three in ten SMEs indicated that they plan to invest in Artificial Intelligence over the next three years.
In publishing the survey, the Tánaiste said:
“This year’s survey highlights the resilience of Ireland’s SMEs, with more businesses reporting higher turnover and profitability despite ongoing economic uncertainty.
“The findings also underline the importance of ensuring that viable businesses continue to have access to the finance they need to invest, innovate and grow.
The survey provides valuable evidence on the financing conditions facing SMEs and helps inform Government policy to ensure that businesses across the country can continue to expand, create jobs and contribute to economic growth.”
Notes to Editors
Access to finance is critical for SMEs, supporting investment, innovation and employment growth across the Irish economy.
The Department of Finance oversees two bodies that support SME access to finance: the Strategic Banking Corporation of Ireland (SBCI), which supports the supply of finance, and the Credit Review Service, which assists SMEs whose applications for bank lending have been declined.
The Strategic Banking Corporation of Ireland delivers financial supports to Irish SMEs through banks, credit unions and non-bank lenders. Since commencing operations in 2015, and up to the end of December 2025, the SBCI has delivered approximately €4.7 billion in financial supports to more than 65,000 SME and farm borrowers.
The Credit Review Service reviews cases where credit has been refused to viable SMEs, sole traders and farmers. The Service has supported almost 60% of businesses and farms that appealed lending decisions, resulting in more than €86 million in additional credit being approved.
The Credit Review Service also provides regular reporting to Department of Finance officials on lending trends, engages with banks and representative bodies, operates a helpline for SMEs seeking assistance in resolving disputes with lenders, and publishes guidance for businesses seeking credit. Legislation was recently enacted to place the Service on a standalone statutory footing, enabling it to continue its important work.