Financial Difficulties

If you are in financial difficulties, please contact us as early as possible because the earlier they are dealt with, the more options there are likely to be to deal with the issues involved. We will need information from you so we can determine whether or not we will deal with your case as per our “Financial Difficulties” guide. There is a copy of this guide below.

Booklet for Small and Medium Enterprises in or facing Financial Difficulties

Introduction

This booklet outlines how Federal Capital Ireland LTD interactswith its customers and is written with reference to “Code of Conduct for Business Lending to Small and Medium Enterprises 2012” produced by the Central Bank of Ireland and is effective from 1st January 2012. This code can be found at www.centralbank.ie

Please be aware that neither the contents of this booklet or “Code of Conduct for Business Lending to Small and Medium Enterprises 2012” prohibits Federal Capital Ireland LTDfrom acting with all necessary speed:

a) Where in the circumstances of the case it is necessary to initiate a liquidation, receivership, examinership or similar insolvency event or where another regulated entityor other third parties initiate such actions;

b) Where it is necessary in order for a usto protect our legitimate commercial interests; or

c) Where there is reasonable evidence of fraud, terrorist connections, money laundering and/or misrepresentation.

This booklet and “Code of Conduct for Business Lending to Small and Medium Enterprises 2012” are without prejudice to Federal Capital Ireland LTDregulatory and/or legal obligations and legal rights to enforce any agreement including any security taken in connection with any agreement.

Things you need to know

In relation to arrears on loans with us, additional interest may accrue and increase your outstanding balance. Arrears on one loan with us may affect other loans or loan applications with us. We report information on the performance of your loan to the Irish Credit Bureau. Arrears will become recorded in their record and may make credit or similar products more difficult or impossible to obtain. These facilities may also become more expensive for you.

Things we will need you to do

If you believe you are, or may become in financial difficulties, please contact us without delay. We will deal with the circumstances of each SME flexibly and on a case by case basis. The earlier you contact us the quicker we can deal together with your financial difficulties.

So we can work with you to help you meet your financial obligations, we will need your engagement and full co-operation.

There will likely be information we will need you to supply us with. We will provide times by which we will need this. We put great importance on this being accurate and complete.

We will rely on you to inform us of changing circumstances.

Please be aware that we will need full engagement and co-operation in a timely way to allow provided dates to be met. Absence of this may cause us to deal with you outside the Financial Difficulties parameters.

Types of information we may need

Full year and / or management accounts
Cash flow predictions for next 12 months
6 months of up to date bank statements
Business plan for next 12 months
Reasons behind the financial difficulties, when they started and how long they are expected to last, with copies of any supporting evidence
List of current assets and liabilities including debtors and creditors
Statement of Affairs for guarantors
Confirmation of up to date tax position of business and guarantors

Decisions in Financial Difficulties

We will assess the information relating to each case of financial difficulties on the basis of all the information available. We will write to you with a decision within 15 business days and may be able to offer alternate repayment terms. If so, details of repayment amounts, frequency, commencement and end will be provided. If we do this, we will need you inform us of your desire to avail of this within 5 business days.

Appeals Process