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Minister Donohoe welcomes results of SME Credit Demand Survey 2024

  • Ó: An Roinn Airgeadais

  • Foilsithe: 19 Bealtaine 2025
  • An t-eolas is déanaí: 19 Bealtaine 2025

12 month survey gives fuller picture of credit needs of small and medium businesses

The Department of Finance has today Monday, 19 May 2025 published the latest in its series on SME Credit Demand Surveys, which covers the calendar year 2024. This is the second year in this survey series that covers a full calendar year. This wave of the survey has been conducted by Ipsos B&A, on behalf of the Department of Finance. It is the most comprehensive survey of SME Credit Demand in Ireland, covering over 1,500 respondents through in-depth discussions.

The survey captures a full picture of the SME landscape in Ireland, with micro-enterprises, small-sized enterprises and medium-sized enterprises accurately represented as per the percentage make-up of SMEs in Ireland.

Key results include:

  • 20% of SMEs surveyed applied for bank finance during the calendar year 2024. This is up from 18% in 2023. Of those companies seeking finance, 37% cited working capital/cash flow requirements as the primary reason.
  • 9% of SMEs applied for government financial support or other non-bank finance; no change year on year.
  • 74% of SMEs who did not apply for credit reported that sufficient internal funds as the reason for not seeking credit.
  • 44% of all businesses surveyed reported increased turnover for the calendar year 2024. This is down from the previous survey (52%). 36% reported no change in turnover, while 20% reporting a decrease in turnover similar to year 2023. The Hotels & Restaurants sector reported one of the lowest net turnovers, with a notable decline seen in trading conditions from 2023 to 2024.
  • 73% of SMEs reported profit during the calendar year 2024, compared to 74% in 2023. 9% reported a loss, while 15% broke even.
  • The average value of a credit application for new finance was €260,059 up from €185,857 compared to 2023.
  • The average Irish SME had outstanding debt in 2024 of just under €444,000 up from €369,000 in 2023. Average outstanding debt ranged from €53k among micro businesses to €1.45m among medium sized companies. More than half (54%) of all SME outstanding debt was to retail banks, with the balance owed to non-bank bodies.
  • The percentage of SMEs exporting in 2024 was 19%, down from 22% in the previous year.

On the publication of the SME Credit Demand Survey Minister for Finance, Paschal Donohoe TD stated:

“I welcome the results of the latest wave of the SME Credit Demand Survey. It provides a critical understanding of the Irish SME landscape. This in turn enables, not only Government bodies, but numerous other businesses and stakeholders, to develop, refine and implement policy measures to support SMEs that are critical to Ireland’s economic performance and a vital source of employment across the country. I would like to thank the businesses that took part in the survey.”

Ends

Note to Editors

The Department has two bodies under its aegis to support and promote SME access to credit; the Strategic Banking Corporation Ireland in terms of supply and the Credit Review Service in terms of supporting those SMEs who have had their application for a loan refused.

The Strategic Banking Corporation of Ireland delivers effective financial supports to Irish SMEs. The SBCI has provided funding to SMEs through, banks, credit unions and non-banks. By end 2024 the SBCI had provided €4.4 billion to more than 62,000 SMEs.

The current SBCI product in the market is the Growth and Sustainability Loan Scheme. This has made €500 million in loan funding available to SMEs to enable investment in growth and sustainability.

The Credit Review Service provides an independent review process for SMEs, sole traders and farm enterprises that have had requests for credit refused or had existing credit facilities reduced or withdrawn in respect of loans up to €3 million. AIB, BOI, and PTSB are the participating institutions.

From its inception in April 2010 to end December 2024, Credit Review has received 1,425 applications, with 1,014 reaching a final conclusion. Credit Review supported 59% of those businesses and farms that completed an appeal.

The Credit Review Bill, which is currently before the Dáil, will place the Credit Review Service on a statutory footing. The Bill will also provide for the potential future extension of the scope of the service (the maximum loan and range of lenders can be extended by Ministerial regulation). The Bill passed Second Stage in Dáil Éireann on 7 November 2024.