Financial Difficulties

1. If you are concerned about financial difficulties which your business is or maybe encountering moving forward contact us at the earliest opportunity to book a review with our dedicated Business Partners and discuss your options.
2. Clearly outline to us how your situation may impact on your banking relationship or your ability to make repayments on an outstanding credit facility held.
3. Engage fully with us as it is only with your full engagement and cooperation that we may be able to provide a solution or alternative arrangement.
4. Where KBCI or your dedicated Business Partner requests information provide this within timeframes set out and complete any documentation required in order for us to be in a position to find a resolution

Following engagement from our customers we will arrange a review with your Business Partner. For this review you will be required to have the following documentation (pending on the nature and size of the business)

• Financial Information:
•  

1. Latest Annual Audited Accounts (draft accounts where annual not available)
2. Tax Clearance Cert (where applicable)
3. Cashflow & Business Plan Projections for immediate 12 months
4. Up to date list of debtors & creditors
5. Business plan detailing previous 12 month performance
6. Where applicable and estimate or valuation report on property/security
7. Statement of Affairs for all names borrowers, guarantors and material shareholders

This list is a sample of information which your dedicated Business Partner may ask for but is not exhaustive

The information you have provided will form the basis for us to assess and explore potential options to help resolve the financial difficulties you are experiencing which may include an alternative arrangement where deemed suitable.

We will write to you within 5 business days to acknowledge receipt of your information. An assessment of this information should not take longer than 15 business days from receipt of same. If for any reason a decision is going to take longer than this we will write to you to advise of the delay and the expected date on which we should have a decision available.

In deciding the suitability of offering an Alternative Arrangement as an option the case will be assessed and will take into consideration the following as a guide:

1. Credit history and history of loan repayments and borrowing levels with us and any other institution
2. The ability to make the alternative arrangement monthly repayment and future ability.
3. The security in place relating to your existing borrowings
4. The level of interaction and engagement you have provided KBCI with throughout the process in order for us to complete a thorough assessment

It is very important that the information provided to KBCI to complete the assessment for eligibility for an Alternative Arrangement is materially correct and to the best of your knowledge reflects truthfully and in good faith the current and future standings of the business

The purpose of this assessment and potential Alternative Arrangement Agreement is to help improve the financial difficulties experienced by our SME customers.

Examples of Alternative Arrangements may include but are not exhaustive to the following:

1. Interest Only – This option may be offered and it refers to the borrower paying the interest only part of the loan for an agreed period of time without making any repayments on the capital sum
2. Term Extension – This option will allow you to extend the length of the loan facility, hence lowering your monthly repayments.
3. Fixed Monthly Repayments – This option may allow you to pay a reduced amount each month. This will allow you to pay capital and interest at an agreed repayment amount.

After considering all the documentation you have given us and the level of engagement, we will write to you outlining the result of the assessment. We will also outline the details of the Alternative Arrangement where offered. In the event, following assessment, that we feel that we are not in a position to offer you an Alternative Arrangement we will contact you directly and advise of the decision and the next steps we may take.

Following the result of the Assessment, in the event in which you are not happy with the outcome you have a right to appeal your case. If you wish to make an appeal in relation to KBCI’s decision to decline your application to provide you with an alternative arrangement, you may do so in writing, to KBC Bank Ireland Appeals Board, KBC Bank Ireland, Sandwith Street, Dublin 2, within 20 business days of the date of this letter.

It is our full intention to answer this appeal within 15 working days from the date the appeal was received and in the instance a decision has not been made in this time frame we will contact you with an expected date a decision will be available.

In the event the appeal is upheld, we will write to you directly with the offer and details of the Alternative Arrangement being offered.

Non – Cooperating Borrowers

As stated above it is important to contact us at the earliest opportunity where financial difficulties have or may be expected to arise. It is also essential that where a customer finds themselves in financial difficulties that they fully engage with KBCI in all aspects of the process, including where requested, information to be presented to assist in making a decision on whether an alternative arrangement is a viable option.

KBCI will consider a customer to be Non-Cooperating in the following examples which fall within SME Regulations:

1. The borrower has failed to make a full and truthful disclosure to the regulated entity of the information required by the regulated entity to assess the borrower’s financial situation, within the timeframe specified by the regulated entity
2. The warning letter, required in accordance with Regulation 20(8), has been issued to the borrower
3.  The borrower has not carried out the action or actions within the timeframes specified in the letter referred to in subparagraph (2) above.

KBCI will write to the customer and where applicable, the guarantor, to inform them that they are being classified as ‘Not Cooperating’ in the case the borrower does not comply with requests for information to be provided or actions to be undertaken in a time period stated in the written correspondence.

Where KBCI classifies a borrower as “Not Cooperating” KBCI will not be in a position to offer an alternative arrangement to the borrower and hence will begin the process of seeking payment for all sums outstanding. Where security is enforced and realisation of this security occurs, the borrower in question will remain liable for any outstanding debt.
 

Useful Contacts

• Central Bank – www.centralbank.ie
• Department of Jobs, Enterprise and Innovation - www.djei.ie
• Insolvency Service of Ireland - www.isi.gov.ie
• Irish Business and Employers Confederation (IBEC) – www.ibec.ie
• Irish Small and Medium Enterprises Association (ISME) – www.isme.ie
• Revenue Commissioners – www.revenue.ie
• Small Firms Association – www.sfa.ie