Businesses tell Minister they’re stymied by limited access to bank cash services

Galway businesses and retailers are being hamstrung by an increasingly limited cash services in banks.

That’s what they told the Junior Minister with responsibility for Business and Employment, Ged Nash, at a meeting in the city’s Meyrick Hotel last week.

The issue was one of a number of matters discussed at a round table meeting of Galway retailers, which was also attended by Galway West Deputy Derek Nolan and Cllr Neil McNeilis.

Afterwards Deputy Nolan acknowledged that this was a growing problem.

“Many small businesses in Galway rely on small cash transactions to keep their business alive and afloat. Pubs, cafes, hairdressers and newsagents, among many others, all deal in cash on a regular basis,” he said.

“When these businesses go to the banks in Galway, they are often discouraged from using the services as dealing in cash in no longer favourable and banks seem to prefer online options being used. However, many businesses simply do not have a choice but to deal in cash.

“One of the main banks in the city – Bank of Ireland – only accepts cash two days a week. This means that many businesses are left with large amounts of cash in their premises which poses a serious security risk.

“Furthermore, there is a six per cent charge on all cash lodgements which is quite a significant amount of money being taken off small business owners every time they make a lodgement, be it after a weekend’s business or after a particularly busy day,” he added.

The Labour Deputy acknowledged that small businesses and sole traders were the lifeblood of the local economy.

“It is absolutely essential they are supported by the government both in an overall sense and in their day to day trading. I do not think it is a very big ask to expect banks to provide a cash service on a daily basis.

“During the very constructive meeting with the retailers in Galway, Minister Nash committed to raising the issue at the next Retail Consultation Forum and with the Advisory Group on Small Business.

“Furthermore, I intend raising it with the Minister for Finance and with the banks directly,” he concluded.

Meanwhile Galway Chamber has welcomed the news that small businesses can now apply for a loan from Microfinance Ireland even if they have not been previously refused by a bank.

“Microfinance Ireland has always had the potential to be a great alternative source of funding for small business and start-ups but has been hampered by the requirement that an applicant business must have been refused finance by a bank before it is eligible for MFI finance,” said Galway Chamber President Frank Green.

“The removal of this requirement will open the scheme up and allow a greater number of innovative businesses access to credit and create jobs in our economy.

“For those companies that have been refused bank funding, the new automatic referral system from banks to MFI will also streamline the application process and generate greater awareness of the scheme amongst start-ups,” he said.