Commercial Profile
KNOW THE SCORE
THE CREDIT REVIEW OFFICE IS ADVISING IRISH BUSINESSES TO BE AWARE OF THEIR CREDIT RECORD IN ORDER TO IMPROVE THEIR CHANCES OF GETTING CREDIT - TIMELY ADVICE AHEAD OF THE INTRODUCTION OF A NEW CENTRAL CREDIT REGISTER. Increasingly in recent years there has been a move towards faster credit approval and automated decision making. In many cases, this means that a poor credit record can lead to a speedy ‘no’ when applying for credit. A bad credit rating can mean a credit refusal, even if the individual or business can repay the loan. Irish businesses and individuals are often unaware of what credit records are held about them, whether they are accurate and how they can be improved, corrected or amended to ensure a better chance of getting credit. Banks assess each business application for credit on a case-by-case basis and each bank operates its own credit policy. Often, when considering
239222_2L_CRO_AMA_BB.indd 1
a credit application, a lender will check the credit history or credit score of the business and its owners/promoters, using a credit reference agency or credit register. At present, the main credit reference agency in Ireland is the Irish Credit Bureau (ICB). Their database includes information on a wide range of loans, including personal loans, mortgages and credit card loans. The ICB does not decide whether or not credit is provided but financial institutions may use ICB information to help make the decision to lend. A new Central Credit Register is currently being established by the Central Bank of Ireland, which is expected to commence operations in 2017.
What should Irish businesses do?
• Knowledge is key – businesses and individuals should be aware of their own credit record before applying for credit. • If the credit track record is poor, address the reasons why with your lender. • Seek to repair any inaccuracies that may be held on the record – you will have to request the lender to get the record changed. If there are problems or delays, a formal complaint can be made to the Office of the Data Protection Commissioner.
25/07/2016 14:08
62 SFA | BETTER BUSINESS
SFA Autumn2016_SFA Credit Review Office CF.indd 62
19/09/2016 16:22