PTSB to offer loans and overdrafts to small businesses

Permanent TSB has launched a new offering targeted at small businesses with fewer than 50 employees and turnover of less than €10 million.

It marks the entry of the bank into the owner-managed small business market, a move that is aimed at diversifying its income stream away from personal lending and residential mortgages.

And it is the first suite of business banking products launched by PTSB since the financial crisis blew up in 2008.

The business products include overdrafts, loans and mortgages. Overdrafts will attract an interest rate of 8 per cent, loans will be available at 6.5 per cent and mortgages at 4.5 per cent.

PTSB has also launched a Visa business debit card for SME customers and an enhanced BUSINESS24 internet banking service, which will be available from the New Year. Killian O’Flynn has been appointed as head of business banking.

The services were launched today by the Minister for Finance Michael Noonan at its new branch and business centre on O'Connell Street in Limerick.

PTSB chief executive Jeremy Masding said its aim was to offer "simple banking solutions" to small business owners. "We now offer competitively-priced overdrafts and loans, specifically focused on small businesses, and our intention is to expand on these in the coming months," he said, adding that advisers would be available in each of its 77 branches, supported by SME business managers and a central SME banking team .

Mr Noonan welcomed PTSB’s decision to expand its product range to support small businesses. “With the addition of Permanent TSB as a new lender to this sector, I welcome the benefits that increased banking competition will offer SMEs throughout Ireland,” he said.

PTSB is spending €1.7 million to reconfigure its Limerick branches, including a second new outlet in Castletroy.