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Brexit - The Urgent Need To Be Prepared

Getting Your Business Brexit ready

As we all know, Brexit will formally exit the European Union on 31st December 2020, and it is vital for Irish businesses to prepare for the changes ahead.

The Department of Enterprise has released a Brexit readiness checklist which we recommend consulting in full to ensure that your business is prepared, and to contact your Local Enterprise Office for information and assistance. We have compiled the main points to consider here.

 

Supply Chain:

If your business trades with Britain, you will need to take steps to reduce the impact of Brexit on your business and your supply chain.

  • Contact your suppliers and logistics carriers in Britain.
  • Look into the charges that may apply to you when your product reaches Britain, even as a stop-off.
  • Discuss with your Local Enterprise Office.
  • Look into the Brexit Loan Scheme to assist with cashflow.

 

Customs:

Following Brexit, you will likely be required to comply with new customs obligations. New declarations for both import and export will be necessary. There are a number of steps which can be taken in advance to limit the impact of this change on your business.

  • Obtain an EORI number if you have not already – This can be obtained via the Revenue website and will be essential for trade with Britain going forward.
  • Decide if you wish to hire an outside customs officer or process customs in-house.
  • It may be necessary to VAT register in the UK.
  • Ensure that you have a ‘Customs Guarantee’ in place. Authorisation for this may be required from Revenue, and this may provide some security against unforeseen costs.
  • Check with your Local Enterprise Office if they provide customs workshops.

 

Duty:

Beginning January 1st, Customs Duty will apply to the import of some goods from Britain. Here are some steps you can take now to prepare.

  • Classify your goods into the appropriate categories.
  • Identify the cost implications customs duty may have on your products.
  • Apply to Revenue for a VAT and Duty deferment, which allows you to defer payment to the 15th of the month.
  • Review contracts with your suppliers and logistics carriers.
  • Assess your accounts department for readiness to deal with these changes and adapt as needed.

 

Certification: 

There may be new certifications and licenses required for trade with the United Kingdom going forward, and it will be important to ensure that you are compliant with EU rules for trade outside of the union. The below are some steps that can be taken to mitigate these issues.

  • Check whether your current licenses and certifications will be valid after the transition period.
  • Check that your product meets all required guidelines for export outside of the EU.

 

Currency Movement:

Since the result of the Brexit vote, Sterling has been somewhat volatile and is expected to remain so for some time, it is important to consider the impact of this weakened currency on your business.

We recommend consulting with the Revenue website and your Local Enterprise Office for information on further steps that can be taken to ensure that your business is Brexit ready. Let’s get all businesses prepared for Brexit and do what we can to start 2021 off on a good foot.

As always, we are available and happy to help should you require any further information or guidance on any business or financial matters.

 

 

Brexit - The Urgent Need To Be Prepared

Brexit – The Urgent Need To Be Prepared

In another lifetime we spoke regularly about the looming threat to Irish business that was Brexit. With the Brexit date of January 1st now fast approaching, Brexit preparations join the long list of issues facing Irish businesses going forward. Irish businesses are currently under more pressure than ever before with the current Covid-19 crisis and with a recent survey by Enterprise Ireland finding that just 42% of businesses feel prepared for Brexit, the time to act and prepare is now.

Taoiseach Micheál Martin has recently stated amidst negotiations that a failure for the EU and Britain to reach an agreement on post-Brexit trade would be “very, very damaging all-round”, and he re-positioned Brexit as an issue economically on par with Covid-19:

“We’ve all had a very significant shock to our economic system because of Covid-19, the last thing we need now across all of our respective economies is a second major shock”.

With this in mind, and despite all other issues currently facing us, we advise early preparation for Brexit, as it is essential to prepare as much as possible. As the relationship between Britain and Ireland is soon to change, there will now be additional hoops for Irish businesses to jump through in order to trade with Britain. This week we will step away from the usual topics associated with Covid-19 and focus on the issue of Brexit and ways in which Irish businesses can be Brexit ready.

EORI Number

As we have recently discussed, one of the most urgent steps that Irish businesses need to take ahead of Brexit is to register for an EORI (Economic Operators Registration and Identification) number. This number is essential for all businesses importing and exporting goods into the European Union. Applications are made through the Revenue Online System (ROS).

Brexit Readiness Checklist

A helpful way of ensuring you have all Brexit bases covered is to check in with your Local Enterprise Office and avail of their ‘Brexit Readiness Checklist’. This may assist you in identifying any areas of weakness that need to be addressed before January 1st and show you the steps that need to be taken to prepare your business for Brexit.

Customs Issues

One of the main changes which will arise on January 1st for Ireland is the new scenario of facing customs issues in trade between Ireland and Britain. As we have long relied on trade routes with Britain, this will be a major stumbling block to be prepared for and will require your product to be priced with this in mind.

The Clear Customs Virtual Training:

One major issue facing Irish trade with Britain going forward will be the issue of customs. As this will be an entirely new stumbling block between Britain and Ireland, it is advised to research and review any areas in which this may be an issue for your business. Many businesses may not deal with customs in house and will need training in this area.

With this area of confusion in mind, Skillnet Ireland has created a new free of charge online training programme (The Clear Customs Virtual Training Programme) to assist businesses in dealing with the increased customs requirements that will arise as a result of Brexit. Advance training will reduce the likelihood of delays and disruptions for customers and business owners.

The programme will be available to all eligible businesses and will be run as part of the “Getting Ireland Brexit Ready” initiative. Visit the Skillnet Ireland website for full information and criteria.

The Ready for Customs Grant:

Enterprise Irelands “Ready for Customs” grant has been set up to provide companies with the financial assistance they may require as a result of Brexit. Once Brexit occurs, companies may incur additional costs in hiring in house customs officials, mobilizing existing staff to other locations for customs related roles. The grant allows for €9,000 to be made available for each full-time employee as well as €4,500 available for each part-time employee. Repayment may be required if it is established that a customs role was not sustained. Applications will be accepted until December 15th via Enterprise Ireland’s online portal. Visit Enterprise Ireland’s website for full details and eligibility criteria.

Deferred Payments:

Deferred payment can be applied for via Revenue and can allow the deferral of the payment of import charges until the month following import. There may be other reliefs available to you, we advise researching via the Revenue site to see what is available.

Communication:

With the issue of customs, open communication will be key. Communicate with your courier’s & logistics carriers so that you have the full picture of your product’s journey going forward. In uncertain times, knowledge is key.

Funding

We have recently discussed the funding opportunities available to Irish SMEs due to the Covid-19 pandemic, and with Covid rightfully taking up so much airtime, it may slip the notice of many that there are still some funding options available to assist in the Brexit transition for Irish businesses.

Brexit Loan Scheme:

The Brexit Loan Scheme is operated by the SCBI (Strategic Bank Corporation of Ireland) and is intended to assist with liquidity issues that may arise as a result of Brexit and makes funds of up to €300 million available to Irish businesses. Applications can be made through the SCBI website.

Ready for Customs Grant:

The Ready for Customs Grant was announced in the July Jobs Stimulus Package. It was announced that Enterprise Ireland would manage a new fund to assist Irish businesses to increase their capacity to manage the new customs processes ahead. Eligible businesses should visit the Enterprise Ireland website for full information.

Brexit Information Hub

In terms of overarching preparedness, it is advised to visit the Government’s new Brexit Information Hub which is intended to help business prepare for Brexit and beyond. This new service is free of charge and provides information, resources and webinars for all businesses.

We hope that this information assists you in some way to get ready for these further business changes. As always, should you have any concerns or queries about these or any other business and financial issues, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. 

Brexit - The Urgent Need To Be Prepared

Brexit – It’s All Customary

It seems so long ago that one of the largest looming threats to Irish business life was the notion of Brexit and the atmosphere of uncertainty that surrounded not knowing what form Brexit was to take. Obviously with the current Covid-19 emergency there are much bigger threats to Irish businesses, but Brexit remains a very real issue that we need to be aware of.

If your business trades directly with the United Kingdom, there will obviously be some changes to your daily business life which it is important to prepare for. From January 1st, 2021, all goods imported into Ireland from Great Britain will be subject customs processes.

As we have discussed previously, one of the most vital ways to prepare for these changes is to register for an Economic Operator Registration Identification (EORI) number, we recommend completing this step ASAP if you have not done it already. This can be done through Revenue’s MyAccount online system.

Once you have your company’s EORI number you must then decide if all customs work will be completed in-house if you feel competent to do so, and have the required software and access to Revenue’s customs systems. If you are not comfortable with completing customs work yourself, you can engage a customs agent to work on your behalf.

We hope that this information has been of use to you and your business, and as always would like you to know that we are here for you and your company at any time should you have any queries.

Banking supports

Micro Finance Ireland

If your business is impacted or may be impacted by COVID-19 resulting in a reduction of 15% or more in actual or projected turnover or profit, AND you are having difficulty in accessing  finance from commercial lending providers, the MFI COVID-19 Business Loan may be able to help your business.

In addition, Local Enterprise Offices in every county provide a range of business supports for micro- enterprises including business continuity and preparedness advisory supports connected to the  COVID-19 outbreak. Contact your Local Enterprise Office for more information.

Eligibility

  • Any business (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m
  • Not in a position to avail of finance from Banks and other commercial lending providers
  • 15% of actual or projected turnover or profit is negatively impacted by COVID-19

Product Features

  • Loans from €5,000 – €50,000
  • Supports businesses who have been impacted negatively by coronavirus in Ireland
  • Loan terms typically up to 3 years
  • Up to 6 months Interest only payments
  • No fees/no hidden costs/charges
  • Fixed repayments/no penalty for early repayment

Application process

Application documentation can be found at this web addresshttps://microfinanceireland.ie/loan-packages/covid19/

  • Complete application form
  • Prepare monthly cash flow forecast for 12 months
  • Complete Micro Finance Ireland Business Plan
  • Submit six months bank statements and in the case of a Limited company six months bank statements for Directors and Shareholders holding 25% or more of the issued share capital of the company.
  • For Limited company applicants only – A central Credit Register report for each Director and for any Shareholders holding 25% or more of the issued share capital of the company.

Strategic Banking Corporation of Ireland

The Department of Business, Enterprise and Innovation announced a number of supports for businesses facing challenges being presented by the current Covid-19 situation. The Credit Guarantee Scheme is in place and available now to SMEs subject to the relevant terms and conditions. Separately the SBCI is currently working to finalise the terms and conditions of the SBCI COVID19 Working Capital Scheme and the eligibility application process for this. The SBCI website will be updated as soon as these are finalised. In the interim if you wish to be kept informed on developments please email the SBCI at info@sbci.gov.ie

SME Credit Guarantee Scheme (CGS) 

The Scheme aims to assist viable SMEs, which under normal lending criteria are unable to borrow from their bank, in accessing credit. The scheme operates by providing an 80% guarantee to participating finance providers (currently AIB, Bank of Ireland and Ulster Bank) on qualifying loans to SMEs.

The Scheme is operated on behalf of the Department of Business, Enterprise and Innovation (D/BEI) by the Strategic Banking Corporation of Ireland (SBCI) and is available from the participating banks (AIB, Bank of Ireland and Ulster Bank). If you are an SME,  you can approach any one of the participating banks and apply for a loan facility under CGS.

Key Features of the Scheme:

  • Facilities of €10,000 up to €1m
  • Terms of up to 7 years
  • Term Loans, Demand Loans and Performance Bonds

 

Who is eligible for the Scheme? 

SMEs may be eligible if they:

  • Are involved in a commercial activity
  • Are a sole trader, partnership, franchise, co-operative or limited company
  • In the lender’s opinion have a viable business proposal
  • Are able to repay the facility

 

How to apply do for the scheme

The scheme is available through participating lenders AIB, Bank of Ireland and Ulster Bank at the web addresses below:

AIB : https://business.aib.ie/products/finance-and-loans/credit-guarantee-scheme

BOI : https://businessbanking.bankofireland.com/credit/credit-guarantee-scheme/

Ulster Bank : https://digital.ulsterbank.ie/business/loans-and-finance/alternative-financing.html

 

Allied Irish Bank (AIB)

AIB’s Covid 19 supports are available at this web address – https://aib.ie/covid19

The financial supports include the following

Cashflow products available to customers and web address for applications

Business Credit Linehttps://business.aib.ie/products/finance-and-loans/business-credit-line?_ga=2.155766331.160936585.1584353997-1581556376.1584353997

Farmer Credit Linehttps://business.aib.ie/products/finance-and-loans/business-credit-line?_ga=2.155766331.160936585.1584353997-1581556376.1584353997

Promptpay – https://business.aib.ie/products/finance-and-loans/promptpay-and-insurance-premium-finance?_ga=2.146517556.160936585.1584353997-1581556376.1584353997

Business loans of between €2,000 and €60,000 can be applied for on line at this web address : https://business.aib.ie/products/finance-and-loans/business-loans?_ga=2.185208617.160936585.1584353997-1581556376.1584353997

Customer in Difficulty (Forbearance Requests)

AIB have a number of possible solutions available depending on your circumstances

  • Capital Moratorium
  • Capital and Interest Moratorium
  • Covenant Waivers

AIB Advisors are available in branch or on the phone 1890 478 833

 

Bank of Ireland

The supports offered by Bank of Ireland are as follows:

  • Emergency working capital, prioritising loan decisions for impacted customers, payment flexibility on loan facilities, and the provision of trade finance and foreign currency products to support sourcing products from new suppliers internationally.
  • Customers who are concerned about the impact of COVID-19 on their business are encouraged to make contact with their Business Relationship Manager or ring 0818 200 348.
  • Bank of Ireland sectoral experts – in agriculture, manufacturing, hospitality, health, food and beverage, and retail convenience – are also available to support customers.

A full listing of supports from BOI are at this web address: https://businessbanking.bankofireland.com/covid-19/supports-for-businesses/

 

Ulster Bank

Ulster Bank have introduced a financial assessment that is designed to evaluate your financial situation and to offer support where you need it most.

Specially trained staff will carry out a financial review. They will review your current financial situation and take you through the repayment options available. These options include:

  • Extending loan terms
  • Temporarily moving to interest only payments
  • Reduced payments on a temporary basis
  • Postponement of monthly repayments for a defined period of time

A full listing of supports from Ulster Bank are at this web address: https://digital.ulsterbank.ie/personal/help-and-support/struggling-financially.html

 

Revenue Irish Tax Firm

Revenue Announce Measures during Covid 19 Outbreak

In recent days, the news around the spread of Covid-19 has become inescapable and naturally worrying for individuals, families and business owners. Here at EcovisDCA we have and will always be committed to providing SME and larger business owners with practical and useful advice to help their businesses survive and thrive, and we intend to continue that trend during this period of adversity and whatever aftermath lies ahead.

In the brief few minutes of the recent announcement by Taoiseach Leo Varadkar regarding the Covid 19 pandemic, it seems that Irish life and business life would be instantly changed. As all schools, childcare facilities and tourism sites would be closed for a period of at least 2 weeks, workers worried about their capacity to continue working. Following on from that, new social distancing recommendations suggesting that workers should work from home where possible and limit direct social contact in the form of group lunches and face-to-face meetings instantly changed how businesses would function in Ireland. Obviously, this is uncharted territory and something that wasn’t planned for in anyone’s business plan for 2020 so it is natural that the business landscape and our economy will suffer to some extent as a result. We here at EcovisDCA will be updating on any and all information pertaining to business life and any news that may light up the uncertain darkness we find ourselves in.

  • Due to the new recommendations and the concerns that workers had for their working capacity going forward, the Government and Revenue have announced updated advice to support workers and SMEs who may experience cashflow issues.
  • All debt enforcement activity is suspending until further notice.
  • The Relevant Contract Tax review due to take place this month is suspended until further notice.
  • A customs ‘green routing’ status will be given to critical pharmaceutical products and medicines.
  • Tax returns should continue to be sent on time.
  • Extended availability of Government subsidised or Government guaranteed loan finance will be offered to businesses affected by Covid 19.
  • Extended grant availability through Enterprise Ireland, Udaras na Gaeltachta and local Enterprise Offices specifically allocated for businesses affected by Covid 19.

Meanwhile, Bank of Ireland and Ulster Bank have also become the first banks to assure their customers that practices like deferrals will be put in place for mortgage holders who may find themselves unable to keep on top of their payments during this time.

For social welfare support for self-employed please click on the links to get the latest information from Revenue:

https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-130320-revenue-announce-measures-to-assist-smes-experiencing-cashflow-difficulties-arising-from-covid-19.aspx

https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-100320-engage-early-with-revenue-key-advice-to-businesses-experiencing-tax-payment-problems.aspx

Should you find that your business is beginning to struggle during this time, it is advisable that you contact Revenue directly to discuss your own specific case.

Covid-19

It is currently impossible to avoid the news of the Covid-19 epidemic at the moment as the situation unfolds rapidly and becomes an increased risk of becoming a global pandemic. A pandemic is an issue that we in this country would be unlikely to have prepared for in a business sense and as a result we may see this virus affect our business landscapes in ways we may not have expected. As cases begin to grow in number and community transmission begins to become more apparent, it is important for businesses to have a plan in place for keeping their employees safe.

The Government have recently published an income support and economic stimulus package which outlines the following main points for companies who may find themselves on lock down or needing to self-isolate their staff or work from home or to reduce economic impact:

  • The 6 waiting days for sick pay with a medical cert will be waived.
  • The means test requirement for Supplementary Welfare Allowance for medically certified self-isolation will be removed.
  • Self-employed individuals will now be entitled to receive either illness benefit, or non-means tested supplementary welfare allowance.
  • A €200million liquidity support fund will be available for impacted firms.
  • The existing systematic short time working scheme is available for employees who may be placed on reduced working arrangements.

On a more global scale, it has been reported that businesses worldwide are changing and adapting practises to better cope with Covid-19. Many companies in Ireland, the United Kingdom and the United States have immediately implemented travel restrictions or a work from home policy for the foreseeable future in order to avoid community transmission within the office space. Unfortunately, these issues will naturally cause service issues for some.

From looking at the China model which involves the businesses who were first hit and continue to deal with the fallout of the virus, a few key pointers for other businesses worldwide have been outlined:

  • Plan ahead but be prepared for the need to be adaptable as the situation develops.
  • Keep employees informed consistently so that they feel safe and protected.
  • Relocate labour where possible. In situations where employees can work from home to prevent community transmission this can be effective as well as social distancing practises in roles that can not be completed at home.
  • Utilise social media and shift some operations to an online system where possible.
  • Prepare for recovery be it fast or slow moving.
  • Look for the positive points and identify where your business can improve in the face of adversity.
  • Use the situation to become more innovative and embrace innovation within your business and your employees. Thinking on your feet is essential in such a fast moving constantly unfolding landscape of change.

This will undoubtedly be a period of unease and difficulty for many on both a business and personal level, but through following the appropriate guidelines we can endeavour to keep all feeling safe.

 

Brexit - The Urgent Need To Be Prepared

Brexit, the first signs of its impact?

Stall the Ball

As we head into the Autumn months, Britain’s planned exit from the European Union in October looms ever larger, and the expected repercussions for Ireland and Irish trade with the United Kingdom remain in question. As we have discussed previously, preparation is key for this massive change as we are sure to see some impact on our shores.

It was suggested this week that we might already be seeing signs of Brexit fears creeping in. This is unsurprising as thus far we have had no definite answers and many time extensions. With a set time now on the table, the situation becomes instantly more real and as a result, we will begin to see fears seep into the world of trade in Ireland.

Despite the fact that latest employment figures show that employment increased by 2% in the 12 months to the end of June. On the surface this might seem like further good news for our continued economic recovery as growth in any area is undoubtedly positive. However, this is the slowest growth in employment we have seen since the beginning of 2013, hinting at the first true sign of Brexit fears among employers. Growth is naturally always a good thing, but here we see a serious slowdown of growth alongside a very small fall in employment figures (a 1% drop) showing that the looming ghost of Brexit is starting to solidify in the minds of Irish employers as a real threat.

Minister for Finance Paschal Donohue has dismissed any notion that Brexit and this slowdown may be connected but interestingly pointed out other areas of the economy which are being affected by Brexit concerns, stating:

“If you look at the half overall in the numbers they show annual employment growth overall of over 40,000 jobs in our country […] They show more people at work than we’ve ever had and indeed they show more people moving to Ireland to work in our economy. So, for all those reasons the trend in quarter two I don’t see reflecting Brexit points for now. […] But I would acknowledge that there is a growing reserve in consumer sentiment and investment point of view regarding the effect that Brexit might have on the economy both now and in the future,”

There are conflicting reports over whether the two can truly be connected as there are currently so many outside forces at play that can affect the Irish economy, but the general consensus is that it is as always something to be wary of and take into account moving forward into an uncertain future.

Should you have any queries or concerns on any business or financial matters please do not hesitate to contact us here at EcovisDCA where we are always happy to be of service.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

The EORI – In Advance of Brexit

What’s Your Number?

As you will all know, we have spoken many times over the past year about Britain’s exit from the European Union, the term ‘Brexit’ has been utilised so often by so many people over the past few months that it has almost lost all meaning, with various extensions making the exit seem more like a myth than an impending reality. With so much uncertainty surrounding our position in this puzzle it has been quite difficult to predict where we will stand, with a ‘Hard Brexit’ with Irish borders becoming more and more likely as the months go on. There are a couple of things that we do know for certain, by virtue of the rules surrounding the European Union, today we will be focusing on one such change which will directly affect all companies with trade dealings with the United Kingdom.

Following the eventual Brexit, there will be a new requirement for all Irish companies trading with the UK. From October, any company trading with the UK will need an EORI (Economic Operators Registration and Identification) Number in order to trade. This number is a requirement for all traders who import or export goods into or out of the European Union, the number is valid throughout the EU and is used as a reference number for customs authorities within any EU member state. As the United Kingdom will soon exist outside of the boundaries of the European Union, this number will now be a requirement for all Irish companies trading with the UK.

You can obtain your EORI number online via the Revenue website, and there is also an eLearning tool available regarding the EORI numbers on the European Commission website. If you are not already familiar with this system prior to Brexit, we would suggest making full use of these resources in advance so that you understand the requirement and are prepared well in advance of any changes due to Brexit coming into effect.

In order to utilise the Revenue service to set up your new EORI number you will need the following:

  • Revenue Online log in details.
  • A valid Revenue Online Services (ROS) digital certificate.
  • A registration for customs and excise in ROS (if you do not have this, you will need to register for customs and excise before beginning the EORI process.).

The Revenue Online System will then take you through the rest of the process. Should you have any concerns or queries about any business or financial matters, please don’t hesitate to contact us here at EcovisDCA where we are always happy to be of service.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

 

When Planning Ahead, Never Forget the Danger of Recession…

As the summer season enters full swing and we begin to see the summer sale signs crop up in all the high street stores, it would be easy to fall into the trap of believing that Irish businesses are fully safe from the dangers of recession and financial instability for the foreseeable future. As we see consumer spending continue to remain strong, it is easy to overlook the many stores and businesses closing and falling victim to financial difficulty.

Although it has now been many years since the height of the recession and we often find ourselves thinking of it as a long distant memory, it has recently been suggested that the woes of recession may not be as far in the rear view mirror for us as we may like to believe. The CEO of the National Treasury Management Agency Conor O’Kelly has suggested that the chances of Ireland being hit by another recession are 100%. He has suggested that a combination of Brexit concerns, changes to taxation and other thus far unforeseen issues are likely to plunge our small Ireland into another recession in the future.

In terms of having country wide safeguards in place for Brexit, Mr. O’Kelly concluded that Ireland may not be sufficiently protected from the negative impact of worldwide trade around us in the shadow of so much uncertainty. He also suggested that a contingency plan needs to be put in place going forward to better assist us in navigating these issues.

“I suppose whether Brexit, Italy, corporate tax or some other challenge that we have Ireland is a small, open economy, highly indebted, relies on international investors for 90pc of its borrowings. […] People talk about whether the bond market is predicting recession or who’s predicting a recession. I’ll give you a prediction of recession. The chance of a recession in Ireland is 100pc. So, we can’t afford not to have a contingency in place. We have to remain vigilant to that and we do that by having significant cash buffers at all times, smoothing out the profile of the debt to make sure we minimise the refinancing risks in the future.”

It has been suggested while there are some safeguards and rainy-day funds in place, more will need to be done to ensure that we do not leave ourselves entirely vulnerable to threat and that although this prediction seems bleak, that it is not a certainty regarding Brexit etc. Rather it is a suggestion for some point in the future that a recession in Ireland is once again a future inevitability. The possibility of a Hard Brexit however does place us in a precarious position and ensure that as a country we are unfortunately more vulnerable than we would otherwise have been to financial instability.

As always, our advice is to safeguard your own business and finances in any way possible going forward and to remain vigilant of any possible threats.

Should you have any concerns or queries, please don’t hesitate to contact us here at EcovisDCA where we are always happy to be of service.

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DCA PARTNERSDECLAN DOLAN & EAMONN GARVEY

Funding Reluctance from SMEs

As you will no doubt know by now, we are massive supporters of Irish Small and Medium Enterprises (SMEs). These small and often unsung heroes of the Irish business world form the backbone of Irish business and make up more than half of all Irish businesses. As such, we have long been supporters of these businesses and championed their successes. In recent months we have spoken about funding opportunities available to these forms of business as well as the ways in which they can be protected and encouraged to grow.

The term Brexit is one which has been utilised so much in recent months that it has almost lost all meaning entirely. Terms like “hard Brexit” strike fear into the hearts of many Irish businesses who have dealings with the UK, and the constant shifting of deadlines and back and forth makes it difficult for businesses to implement sufficient safeguards for their businesses.

Reports this week suggest that Irish SMEs are becoming somewhat reluctant to borrow at present which may show a level of wariness in the looming shadow of uncertainty that is Brexit at present. The Strategic Banking Corporation (SCBI) was started in 2014 in others to allow access to credit for SMEs and functioned by channelling credit through other avenues. This has often been a popular choice for SMEs seeking to fund their business activities, but in the last year we have seen a major slump in uptake on this funding which even an additional Brexit loan to the scheme couldn’t fix. Figures show that 2018 saw only approximately a third of the funding taken up as was accessed in 2017. This shows that in the current climate, Irish SMEs are becoming increasingly reluctant to take their chances on accessing funding.

The SCBI themselves have said of the issues:

“The modest deployment in the nine months to end-December 2018 is a clear reflection of SMEs remaining reluctant to invest in an environment of increased uncertainty and risk as Brexit approaches.”

As things stand we remain almost none the wiser on how the Brexit issue will play out and as always, we advise having a plan in place and safeguarding your business as much as possible in advance. The current advice remains that old Irish refrain that fell from the lips of all parents at one point or another: “Hope for the best, prepare for the worst.” In this way, your business will be protected against all eventualities and in the best position possible to flourish in the face of challenge and adversity in the current uncertain climate.

Should you have any concerns or queries on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA where we will be happy to help in any way possible.