As a result of the COVID-19 crisis, your business may have financial commitments that it can no longer meet. You will therefore need to engage with your lenders at the earliest possible time to turn the situation into one that is manageable.
The 5 retail banks (AIB, Bank of Ireland, KBC, Permanent tsb and Ulster Bank), along with their representative body the Banking & Payments Federation Ireland (BPFI) announced a series of measures to support both personal customers and businesses impacted by the COVID-19 pandemic. The measures have been extended to include non-bank mortgage lenders and credit servicing firms.
These measures include:
- A payment break of up to 3 months for businesses and personal customers. Depending on the lender, this could be a break on either payments of capital or payments of capital and interest.
- A simplified and fast application process to make it easy for businesses and personal customers to get support from their bank.
- Action so that credit ratings are not affected for anyone availing of the break.
- Deferral of court proceedings for 3 months.
The various lenders that are highlighted above have also announced additional funding options to assist businesses affected by Covid-19. These include the provision of:
- Emergency working capital facilities with flexible payment plans
- Trade finance
- FX products to support sourcing new products internationally
- Fast tracking loan decisions for impacted customers
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