AIB’S FUNDING PREMIUM FOR SMALL BUSINESSES
Businesses already struggling to survive are being surcharged by banks when they are looking for loans, the Sunday Business Post reports.
AIB, which has around 40% of the small to medium enterprises market, is now applying a “funding premium” of at least 1% on all loans under €1m. The 1% increase represents interest repayments of €2,000 more on a €200,000 loan – and that is before any additional charges are applied.
The bank has told customers the so-called funding premium would increase based on “the size of the facility, the customer’s total borrowing and the term being sought”.
Of course, all this is besides the point for many small companies who cannot seem to get bank loans at any cost.