Bank finance is the most popular type of finance sought by small and medium sized enterprises, according to a new survey from the Central Statistics Office.

More than a fifth of all small and medium sized enterprises (SMEs) applied for bank finance in 2014 according to the CSO’s Access to Finance survey.

A total of 20 per cent of micro sized enterprises applied for bank finance, with the rate rising to 35 per cent for small sized enterprises and to 39.8 per cent for medium sized enterprises.

The survey found exporting SMEs were more successful than non-exporting SMEs when applying for bank finance. Almost 95 per cent of exporting SMEs were successful compared to 67 per cent for non-exporting enterprises.

The Information and Communications (ICT) sector is less likely to look for bank finance than other sectors, but more likely to be successful, according to the survey.

The Strategic Banking Corporation of Ireland (SBCI) urged Irish SMEs to explore new sources of funding in addition to traditional bank lending.

SBCI chief executive Nick Ashmore said Irish SMEs are more dependent on banks than SMEs in other countries and that they should be alert to the increasing number of non-bank funding options that have emerged in recent months.

“Irish SMEs have been paying more to borrow than similar businesses across Europe.”

Big Red Cloud chief executive Marc O’Dwyer said the survey shows the disparity that exists between SME’s that are export focused and those that serve the local economy.

He said micro and small businesses in Ireland face an uphill struggle when it comes to raising bank finance.

“This report should serve as a timely reminder to the next Government of its elected responsibility to the 190,000 small businesses in Ireland that employer nearly 1.3 million people,” he said.