RUNNING A PLAY centre seems like a pretty fun job.
And the Fun Galaxy Play Centre was going so well that expansion was on the cards, but there was just one problem – the bank denied an application for a loan.
Sharon Farrell dreamt of owning her own business ever since she was a small child herself, so when she was able to open Fun Galaxy Play Centre in 2007 it was the realisation of a lifelong ambition.
Very quickly, her business took off and she wanted to expand to another location. Sharon applied for a bank loan but was ultimately rejected.
They went through the business plan with a fine-tooth comb. It took 3 weeks to get a no, and 3 months to get a no from the internal review in the bank.
Sharon was dejected but not ready to give up on expanding her (fun) galaxy. She turned to the Credit Review Office to see if she could appeal the bank’s decision.
I heard an ad on the radio about the Credit Review Office, and I was in two minds as to whether to apply. I told them my story and what the problem was so they suggested we meet.
Ultimately, after working intensely with the Credit Review Office, who assured her that her business was working (which was ‘a huge confidence boost’), Sharon returned to the bank.
It was like having an amazing mentor that you can’t afford to pay for standing over you telling you all the right things to do.
When the bank refused her again, the Credit Review Office went to the bank for her.
Then the bank came back to us as a direct result of the decision from the Credit Review Office and set up a meeting.
After about three weeks, the banks came back to her with her loan approved.
Without the Credit Review Office we wouldn’t have even been able to see the bank again let alone get the second chance with them.
Sharon got her loan and was able to open a new premises, almost tripling her staff in the process.
We’ve 78 staff now. When we started we had 27.
So, what is the Credit Review Office exactly?
The Credit Review Office is an independent review process for SME businesses that have had bank loan applications denied from participating banks. Set up during the recession, the Credit Review Office examines cases where the business feels their loan denial has been unjustified.
And how do they help?
If a business has had a loan application turned down by a participating bank and feels that it was unjustified they can get an independent assessment from the Credit Review Office and see if the decision could possibly be overturned. Banks currently part of the review process are Bank of Ireland and AIB, while PTSB will join shortly and Ulster Bank are actively considering participation.
The Credit Review Office can’t guarantee success in every case, but it has seen approximately 50% of the banking decisions it appealed overturned since 2010.
Who is eligible for help?
There are some criteria to be eligible for assessment and review -
You can also check your eligibility here.
How do I get started?
After you check your eligibility then you need to download and submit an application to the Credit Review Office, or you can give them a call.
As Sharon says,
They’re genuinely interested in your business and getting your business to a better place.
Has your business had credit facilities refused, reduced or withdrawn by a participating bank? Or have you had difficulty getting credit or loan facilities of up to €3 million? If you have had an unfavourable change to your existing credit terms and conditions, we’re here to help.
Our process is independent, easy to complete and covers all applications for new loans or restructured credit facilities.
Visit www.creditreview.ie to see if you’re eligible.
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