Bailed-out bank
channelling funds into asset finance in the Republic of Ireland.
Paul Golden writes.
Go deeper with GlobalData
Allied Irish Bank
has established an €85m equipment finance fund for small and
medium-size enterprises.
Government-owned AIB, which
has received more than €7bn in state funding and is expected to
require a further €4.7bn under the terms of the EU/IMF bailout, has
committed to lend €3bn to SMEs in 2011.
The equipment fund is joined
by AIB’s €60m Agri Fund, also designed to support SMEs.
AIB head of asset finance and
intermediary business Robin Bradley said: “These funds are for when
SMEs require financing to replace existing assets or purchase new
assets for expansion.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“What I know from attending
the Farm Machinery Show in mid-February is that people are of the
mistaken belief that the bank is not open for business.
“We are open and want to
discuss proposals whether or not they come from existing AIB
clients.”
Some small business groups
have suggested that the terms being placed on loans are acting as a
deterrent to lending.
Bradley said: “There is no
set pricing for these leasing facilities. Price is a function of
the type and quality of the asset being financed, the individual
borrower’s characteristics and the proposed term of the facility.
Hence they vary in cost and are subject to individual negotiation
with the leasing representative or the branch.”
AIB is one of the leading
suppliers of equipment finance to the SME sector in Ireland and has
relationships with many of the major equipment and machinery
suppliers.
“We have 36 full-time finance
and leasing representatives who are located around the country to
make sure we have full geographic coverage,” Bradley
said.
“They have relationships with all major dealers and
suppliers as well as small local suppliers. Staff in our
branch/business centre network are also available to discuss
individual requirements.”
