In December 2015, the Central Bank of Ireland published Regulations for Business Lending to Small and Medium Enterprises called the SME Regulations. The SME Regulations set out new requirements for lenders when dealing with SME’s who are facing financial difficulties or experiencing financial difficulty and apply to Credit Unions since 1st January 2017.
Monaghan Credit Union Limited endeavours at all times to be both clear and transparent in all our member engagements and to comply in full with our legal and regulatory obligations
The purposes/objectives of the SME Regulations can be summarised as follows:
- To enable access to credit for viable and productive business propositions;
- To promote fairness and transparency in the treatment of SMEs;
- A clear definition of circumstances which define when an SME is regarded as in financial difficulties
- To ensure that when dealing with financial difficulties cases, the objective of a regulated entity will be to assist borrowers to meet their obligations, or otherwise deal with the situation in both an orderly and appropriate manner.
- To outline the communication and information requirements when the SME is in financial difficulties
The provisions of the SME Regulations are without prejudice to the Credit Union’s legal and regulatory obligations and legal rights to enforce any agreement including, but not limited to, any security taken in connection with a credit facility agreement.
The Regulations apply when regulated entities provide Small to Medium Sized Enterprises (SME’s) any of the following services;
- Overdraft facility
- Term Loans
- Leasing and Hire Purchase
- Invoice discounting.
At present Monaghan Credit Union only provides loans to SME members.
For further information on SME’s process click on the link https://www.monaghancu.ie/cuweb/wp-content/uploads/SMEs-Procedures.pdf