IFP Ireland Launch

03rd December, 2015

John Power

• Background

• Purpose of the Group

• Members

• Overview of the Product Providers

• Survey Highlights

• Conclusion

Agenda

• Less players

• Banks want low risk, vanilla products.

• Lack of information = high risk

• For smaller customers, banks adopt a light touch high volume approach

• Availability of funds is not an issue – their perceived risk is

Thus

• Lack of sector knowledge, access to easily verifiable comprehensive

information and a light touch approach can result in viable propositions

being rejected

…Background to the IFP Ireland…

• Genesis for the Umbrella group

• Group of specialist providers – all providing specific products

• Most products are not available from the banks

• Credit Review Office – 55% of applications are overturned

• IFP Members are spending the time and have the knowledge to

understand requirements.

The Response…

• Drive awareness of Independent Finance Providers in the Irish market

• Inform Irish Business, particularly those in the SME sector, that there

are more financing options outside of the banks

• Build trust and credibility for the sector

• Single point of reference for Irish Businesses to research providers

• Allow collaboration between all members and also many of the banks

• Point of contact for external bodies to engage with the sector

IFPI Purpose…

Current Members…

Overview of Providers Products

Pre-Shipping

• Stocking

• PO finance

• Reverse ID

Post Shipping

• Invoice Discounting / Finance

• Single Debtor

• Single Invoice

• Invoice Trading

IFPI Product categories…

Asset Finance and Leasing

• Leasing of equipment, vehicles,

IT etc.

Term lending

• Peer to Peer lending and

crowdfunding platforms

• Specialist lending companies

Equity

• Domestic equity providers

Who Does What…

Pre- Shipping Equity

Provider Term

Asset

backed Lease

Reverse

ID Stocking

Supplier

Finance PO ID

Single

Debtor

Single

Invoice

Invoice

trading Equity

Bibby Financial services

Close Brothers

Convertibill

Aztec Finance

InvoiceFair

Grid Finance

Linked Finance

Co-Funder

GRENKE

Finance Ireland

SME Finance & Leasing

Solutions Limited

Crossflow Payments

Trade Team Global

Tower Trade Finance Ireland

Merrion Fleet Management

Renatus Capital Partners

Working Capital

Long term Post Shipping

Survey Highlights

• 590 responses

• Broad range of companies & Sectors

• 62% of respondents <€5m turnover

• 54% have <30 staff

Context of the Survey…

Banks are Still the Main Source of Funding…

39.20%

49.20%

34.00%

3.10%

3.70%

22.40%

1.60%23.70%

Finance Types

Bank Loan

Bank Overdraft

Leasing

Peer to Peer Lending

Trade Finance

Invoice Finance

Invoice Trading

Other

Access to Finance is Still an Issue…

46.60%53.00%

0% Issues accessing finance

Yes

No

No Responses

73% Require Funding in 2016…

72.30%

26.70%

0% Next 12 months

Yes

No

No Responses

54% not Prepared to Access Finance in 2016…

27.70%

54.20%

17.90%

Yes

No

No Responses

Predominantly Funding for Working Capital…

47%

12%

19%

37%

18% 18%21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Equipment RawMaterials

Stock Staff Premises SystemUpgrade

Other

No Funding Likely to Result in Stretched Creditors…

1.50%

12.00%

52.70%

32.50%

1.10%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Delay paying your staff Delay paying the RevenueCommissioner

Not Pay Other Creditors Other No Responses

Lack of Working Capital Financing

Worrying 18% Say They Would Cancel the Project…

9.10%

0%

38.60%

18.30%

33.20%

0%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Personally lend the money to my business

Personally borrow from the credit union

Attempt to fund the project from companycashflow

Abandon the project as finance is notavailable

Research non bank finance

No Responses

Vital project funding

The More Interesting Comments…

Our experience as a Technology company is

the issue over collateral

I could create 50-70 jobs in the Republic and also expand to Northern Ireland subject to being able to finance this

All our finance issues are related to cashflow

pressures due to significant and rapid

expansion.

Moving from small to medium business is difficult, it needs a bigger funding requirement

and often needs a bigger picture look from financiers

Finance has freed up in past year you have to

shop around

• Compliment traditional sources of finance

• Greater risk appetites than the banks

• Companies are still required to present a good business case

• We are making it easier for SMEs to access funding

IFPIreland.ie

Conclusion