Up to 85% of Irish firms likely to be impacted by Brexit

Banking industry body urges companies to engage with banks ahead of deadline

UK prime minister Boris Johnson pledged in his general election manifesto promise to ‘get Brexit done’ by January 31st

UK prime minister Boris Johnson pledged in his general election manifesto promise to ‘get Brexit done’ by January 31st

 

Up to 85 per cent of small and medium-sized companies in Ireland are likely to be negatively impacted by Brexit, Banking and Payments Federation Ireland (BPFI) has warned.

The banking industry body has urged companies to engage with their banks ahead of the UK’s expected exit from the EU later this month in order to minimise any potential disruption.

It has published a “Brexit finance checklist” for SMEs outlining key advice on financial and banking preparedness ahead of Brexit.

The checklist provides information on a range of areas including custom guarantees, currency volatility, cashflow management and credit supply, BPFI said.

The group cited a recent survey by the Department of Business, Enterprise and Innovation showing that 72 per cent of firms in the Republic will experience some or a high impact from an orderly Brexit, rising to 85 per cent in the event of a no-deal Brexit.

BPFI is urging SMEs to take all preparatory steps, including engaging with their bank to ensure that they can arrange for any funding or guarantees needed to help avoid undue disruption to business.

UK prime minister Boris Johnson pledged in his general election manifesto promise to “get Brexit done” by January 31st.

“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,” BPFI’s Marian McCarville said. She noted the department’s recent survey showed that nearly 50 per cent of SMEs say they could be impacted by customs declarations, yet only 10 per cent have taken action to mitigate.