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Presented By Business Banking, AIB Bank

Presented By Business Banking, AIB Bank. ARE BANKS REALLY LENDING?. Banks not lending. Banks are meeting their lending targets. THE FACTS Credit Availability Recapitalisation means that AIB has sufficient capital to meet all SME credit demand

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Presented By Business Banking, AIB Bank

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  1. Presented ByBusiness Banking, AIB Bank

  2. ARE BANKS REALLY LENDING? Banks not lending Banks are meeting their lending targets THE FACTS Credit Availability • Recapitalisation means that AIB has sufficient capital to meet all SME credit demand • De-leverage / Disposal of non core – Does not impact on SMEs New Credit Realities • The recent past : Ad hoc informal credit request with minimal information & review • Back to Basics : Formal application with focus on cashflow Process Improvements, some delivered, more to do • Tools in place • Need to ramp up engagement – Big Drive for Small Business

  3. WHAT IS A VIABLE BUSINESS IN THE CURRENT ENVIRONMENT? Common characteristics of a viable business • A previous history of successful trading and cash generation • An adaptive management team • Good credit history • Clear Business Plan and realistic cash flow projections • An ability to show that the business is capable of maintaining or returning to solvency within a two year period Source : Irish Bankers Federation (www.ibf.ie)

  4. WHAT ABOUT BUSINESSES STRUGGLINGTO DEMONSTRATE VIABILITY ? • You are not alone • Early and open engagement is essential • Dedicated specialist teams now in place • Core strategy is to cure problems, restructure loans and restore customer viability • Case by case basis with a solutions mindset

  5. WHEN APPLYING FOR CREDIT THERE ARE 4 KEY STEPS…… STEP 4 MEET WITH AIB TO COMPLETE CREDIT APPLICATION • STEP 3 • PREPARE SUPPORTING INFORMATION • REQUIRED FOR YOUR APPLICATION STEP 2 PREPARE / REVIEW YOUR BUSINESS PLAN • STEP 1 • COME AND TALK TO US

  6. STEP 1 COME AND TALK TO US…. STEP 2PREPARE / REVIEW YOUR BUSINESS PLAN… STEP 3 THERE IS SOME KEYFINANCIAL INFORMATION TO SUPPORT YOUR CREDIT APPLICATION… STEP 4 MEET WITH AIB… • Complete all documentation and submit 2/3 days in advance of your meeting • Ensure your Relationship Manager has a full understanding and knowledge of your proposal • Discuss financial solutions (products) to meet your requirements • A solid appraisal of your business to illustrate the business history in a professional manner • Statement of strategy and future goals • A risk analysis from a market, customer, financial and operational perspective • Contact your Relationship Manager prior to preparing your application • You will receive an outline on the information the bank requires to support your application • You will also receive a copy of “SME Lending Application Form”, available on www.aib.ie/business • It will be of benefit if you provide the following up-to-date information to your Relationship Manager 2-3 business days in advance of your meeting: • Up to date accounts • Confirmation of status on your Tax Affairs • Aged list of debtors/creditors • Asset/liability profile of the company • Financial and cashflow projections • Details of security may be required • STEP 4 MEET WITH AIB TO COMPLETE CREDIT APPLICATION • STEP 3 • FINANCIAL INFORMATION REQUIRED TO • SUPPORT YOUR APPLICATION • STEP 2 • PREPARE / REVIEW YOUR BUSINESS PLAN • STEP 1 • COME AND TALK TO US

  7. WHEN APPLYING FOR CREDIT THERE ARE 4 KEY STEPS…… STEP 4 MEET WITH AIB TO COMPLETE CREDIT APPLICATION • STEP 3 • PREPARE SUPPORTING INFORMATION • REQUIRED FOR YOUR APPLICATION STEP 2 PREPARE / REVIEW YOUR BUSINESS PLAN • STEP 1 • COME AND TALK TO US

  8. APPEALING A CREDIT DECISION AIB INTERNAL APPEALS PROCESS • You may appeal a credit decision where: • We fail to respond within 15 business days • You feel you have been unfairly refused • Smaller loan offered than requested • Existing credit facilities have been reduced or removed • Terms and conditions to the loan you feel are unacceptable • You can expect a written response from AIB Internal Appeals within 15 business days UNSUCCESSFUL APPEALS • Credit Appeals Office • Full details are available onwww.creditreview.ie

  9. WHAT CAN YOU EXPECT FROM AIB IN 2012? • Big Drive for Small Business • Increased levels of engagement by SME relationship staff • Credit decisions within 15 working days • Relevant propositions e.g €100m job creation loan fund – Feb 2012 • Nationwide business skills coaching programme

  10. TO RECAP • The recapitalisation of AIB means that the bank has money to lend…and it wants to lend new money • Supporting the growth of SMEs is a core priority of AIB • Shift in focus to cashflow based lending to viable businesses • Use the tools to assist you in your credit application • Formalise your credit application • Use the appeals process if declined

  11. Contact us • Your local AIB Relationship Manager / SME specialist • www.aib.ie/business Thank You

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