New guidance shows pitfalls of using own working capital for capital projects

75% of Irish firms are using internal funds to finance their investment activities, according to a European Investment Bank survey. This is well above the EU average of 60%.


The Credit Review Office has issued a guidance note for small firms that are considering using ‘own funds’ to finance an investment project. The note acknowledges that self-funding is the cheapest form of finance available to businesses and should be considered. It highlights, however, some pitfalls in pursuing this option and the risks to consider at the outset of the project.


The guidance note, ‘Funding a Capital Project from “Own Funds” or Working Capital – SMEs’, is available on the Credit Review Office here.

More information about the Credit Review Office is available on the SFA website here or you can visit the Credit Review Office website at A separate piece of research is being carried out by the Credit Review Office to explore whether changes in banks’ physical distribution networks are adversely affecting demand for credit.


Members may also be interested in the Credit Review Office’s guidance note for SMEs who have had their loans sold to another lender, which is available here.

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In this issue
SFA E-Zine – The Tuesday Edition
SFA in the media
SFA launch new GDPR publication
Redundancy process - the dos and don'ts
New guidance shows pitfalls of using own working capital for capital projects
New SME Market Monitor published
Useful videos for companies interested in public procurement
Last chance to book - challenges around probation, absence and retirement in member companies
Last chance to book - HR update 2018
GDPR in action – Cork
SFA Annual Conference
Discipline and Dismissal and other upcoming training courses