Catherine Collins,
Head of Credit Review
Have you missed a repayment on a loan recently or are you struggling to keep up with loan repayments?
Given the current pressures on business costs, especially energy costs, many companies may be finding it difficult to keep up their loan repayments.
Missed repayments have a negative impact on your ability to secure credit in the future. Therefore it is vital that you discuss how you plan to address any missed payments with your lender and to understand that a missed payment may be reported to the Central Credit Register (CCR). Different lenders have varying arrangements with borrowers and often there are grace periods and break periods that can be applied to ensure a missed payment is not noted on your CCR. Understanding what solutions are available to you means you can prioritise which payments may need to be addressed immediately, and which ones can be restructured without impacting your credit record.
Not familiar with the Central Credit Register?
Borrowers should be aware that when assessing a credit or loan application Banks and Credit Providers will look at your recent credit history as well as their own internal records of how you operate your bank accounts and loan facilities.
The CCR is a national database of information on consumer and business loans, established by the Central Bank of Ireland. This records all loan and credit facilities for personal and business borrowers, covering repayments on all loans and credit facilities over €500 in the last 5 years. Banks will assess the information on the borrower’s credit report from the CCR and any negative information such as missed payments or restructures may lead to an automatic decline of your application for credit.
It’s important to note that the bank makes the lending decision, not the CCR – however Catherine Colins, Head of Credit Review cautions “we find the CCR information is a key element of that decision, especially as banks increasingly automate their decision”. While automation enables banks to respond more quickly to their customers, it can be difficult to ensure a positive outcome if your credit track record has any blemishes or issues.
What should I do?
If you are applying for a loan, you should check your credit history on the CCR before you apply. This may help you spot any missed payments or errors in your credit report that you may have been unaware of, and that you need to address before making your credit application.
You can check out your credit history (personal and business) free of charge any time. The CCR website provides guidance on how to do so, and what to do if there are errors on your report. Furthermore, to provide context to lenders viewing your report you can upload a 200-word explanatory statement to clarify specific loan information, such as arrears caused by exceptional circumstances that may have been outside of your control.
And remember—if your bank refuses your business credit application, Credit Review can help.
We provide an independent, impartial review of your application and the bank’s reasons for decline. Our solutions-focused reviewers work with you to explore whether a viable credit solution can be identified that works for both you and your lender.
If we believe your proposal is sound and the credit sought can be repaid, we will recommend that the bank provides the credit.
Even if the original decision is not overturned, you will benefit from:
- A clear explanation of why credit was refused
- Constructive, practical feedback on your application
- Insight into what lenders look for, including cashflow, repayment capacity and security
This can help you strengthen future applications and improve your access to finance.
For more information on our independent appeals process, visit creditreview.ie or call 0818 211 789.
