The number of SMEs that applied for bank credit between April and September last year, was 17%, with €278,915 the average value of an application.
A total of 5% of SMEs applied for non-bank finance.
According to the Credit Demand Survey, the average Irish SME had outstanding debt of just over €427,000, up from €400,000 on the same period in 2021.
Of all businesses surveyed, 44% reported increased turnover in the six months up to September 2022, with 24% reporting a decrease. The biggest improvement was seen for the hotel and restaurant sector (78%).
SMEs reported that sufficient internal funds was the reason for not seeking credit for 79% of firms.
The survey is conducted by Behaviour and Attitudes, on behalf of the Department of Finance.
During the six months, 65% of SMEs reported profit compared to 57% in 2021. In 2022, 12% reported a loss while 22% broke even.
The survey also found that 61% of SMEs increased prices, 96% of which have done so to cover increased input costs.
Overall 40% of SMEs have no debt, with construction and business services having the lowest level of debt.
Minister for Finance, Michael McGrath welcomed the results of the latest wave of the survey. He said it enables government to gain a critical understanding of the Irish SME landscape which in turn enables Government to develop, refine and implement policy measures to support SMEs.
"For example, the survey series has provided an evidence base to help inform Government's response in supporting SMEs facing rising energy costs and the cost of doing business via the launch of the Temporary Business Energy Support Scheme and the forthcoming launch of the Ukraine Credit Guarantee Scheme and the Growth and Sustainability Loan Scheme."
The minister thanked the businesses that took part in this survey wave.
