Allied Irish Banks withdraws invoice finance

Factoring Finance

Factoring Finance

Allied Irish Banks (AIB) has recently been accused in the press of withdrawing its invoice discounting facilities to Irish exporters.

The chief executive of the Irish Exporters Association Mr Whelan, had commented that in addition to withdrawing invoice finance facilities, AIB was also not offering bank guarantees internationally any more. As such, any exporters who had previously relied on the AIB guarantees in order to support their performance bonds now have a significant financial problem.

According to press reports the issue is of particular interest to software, engineering, tech firms and other professional services suppliers who account for more than 40% of Ireland’s exports.

The bank would buy invoices at a discount of about 20 per cent, but AIB is simply not buying invoices any more, whilst its closest rival, Bank of Ireland, is still confident that its own invoice discounting offering is robust on firmly in place.

When quizzed, AIB denied that facilities had been withdrawn and stated that
‘‘As with all requests for lending facilities, each one is assessed on an individual basis on its own merits,”

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