The Central Bank has said that lending to small and medium enterprises has contracted in recent months.
The finding comes despite evidence that some financial institutions are trying to grow their SME loan book.
The decline in SME lending has been more pronounced to date this year than the decline in personal loans and credit cards.
A total of €33bn worth of core SME loans were outstanding in the first three quarters of the year.
The Small Firms Association (SFA) said: “the decline in lending as per the findings of the Central Bank clearly show that access to credit remains a huge challenge for many small firms.”
"Small businesses are the life blood of this country and it is time this was recognised," said SFA Acting Director Avine McNally.
“When a small business fails, it is not because it runs out of customers, ideas or products. It simply runs out of money.
"With almost one in four small businesses in Ireland not getting enough credit, we have a very serious problem, with potentially 62,500 small business closures and 200,000 jobs lost as a result.”