Many businesses not prepared for Brexit – BPFI urges action8th January 2020
Up to 85% of SMEs face a Brexit impact – yet many not prepared
BPFI publishes Brexit Banking Checklist for SMEs
Banking & Payments Federation Ireland (BPFI) has today urged SMEs to prepare for a Brexit impact; and has published a Brexit finance checklist for SMEs outlining key advice on financial and banking preparedness ahead of the UK’s expected exit from the EU at the end of January. The checklist provides information on a range of areas including custom guarantees, currency volatility, cashflow management and credit supply.
With a recent survey by the Department of Business, Enterprise and Innovation (DBEI) showing that 72% of SMEs will experience some or a high impact from an ‘orderly Brexit’ – rising to 85% in the event of a ‘no deal Brexit’ – BPFI is urging SMEs to take all preparatory steps. This includes engaging with their bank to ensure that they can arrange for any funding or guarantees needed to help avoid undue disruption to business.
Speaking about the information BPFI has published today and the advice to SMEs to talk with their bank and ensure they are fully prepared, BPFI’s Head of Funding & Resolution, Marian McCarville said:
“The reality of Brexit as it now approaches is that there will be implications for a huge number of SMEs. It is concerning that not all businesses are as prepared as they could be; the recent DBEI survey for example shows 49% of SMEs identify that they could be impacted by the need for customs declaration, yet only 10% have taken action on this. Also, while 14% of SMEs say that hedging currency/investment issues could impact them, only 3% have taken action at this point. So too, for liquidity/currency issues where 26% believe they could be impacted but only 4% have taken action.
It is essential that SMEs are proactive in assessing the impacts for their business, planning what actions need to be taken to mitigate the risks and capitalise on opportunities, and making sure their business model is adapted as needed to meet their own particular circumstances.
The objective of the information we are publishing today is to provide a quick finance checklist which we hope will prompt SMEs to review some of the more common Brexit-related financing requirements. It is important for SMEs to engage with their bank to ensure that they can arrange for any funding or guarantees needed to avoid undue disruption to business.”
The information, Brexit, Business and Banking is available on the BPFI website here.
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland and the Fintech & Payments Association of Ireland, BPFI has 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
For further information contact Jillian Heffernan, Head of Communications, firstname.lastname@example.org 087 9016880