- Over 4,500 Irish SMEs funded to date by Linked Finance
- Manufacturing, construction and professional services are main sectors for lending
- Company also announces innovative new €50M line in funding launched this month
Linked Finance, one of Ireland’s leading alternative lenders, has now loaned €350 million to SMEs, since its launch. Reaching this lending milestone comes as Irish businesses show an increased appetite to use alternative financiers.
With over 4,500 SMEs benefiting from its funding, Linked Finance continues to play a vital role in driving economic growth and empowering SME businesses across the country. Companies borrowing through the platform are attracted by the fast pace of decision-making, with the end-to-end process from initial application to receipt of funding taking as little as 24 hours for loans of up to €500,000.
New funding line launched for Irish SMEs
Linked Finance also announced that they have successfully raised over €50m in new wholesale funding that is now available to Irish SMEs.
This innovative fund is a first for the Irish non-bank lending sector and was evidenced by the private placement of senior and junior notes issued by a Section 110 company and compliant EU securitisation regulation. The maximum loan size for applicants is up to €500K, with terms of up to 5 years. Linked Finance CEO Niall O’Grady commented:
“In an SME sector that needs much more funding support, this new securitisation format establishes an efficient and repeatable funding structure for Linked Finance. We expect to raise considerable further wholesale funding using this structure over the coming years and are looking forward to continuing to expand financing support for Irish SMEs.”
Increasing loan sizes
A notable trend at the lender is the significant growth in loan sizes to SMEs, with the average amount borrowed increasing from €18,000 in 2013 to €115,000 today. This trend reflects the growing confidence of SMEs in leveraging larger funding amounts to fuel their growth and expansion initiatives.
In the last 12 months, Linked Finance has experienced significant demand across various sectors, with the top industries seeking loans including retail, construction, manufacturing and professional services. This diverse demand underscores the lender’s commitment to supporting small and medium sized businesses across a wide range of sectors.
O’Grady added: “We are delighted to reach this €350 million lending milestone and to see such significant growth in our average loan size. SMEs are the absolute backbone of the Irish economy - employing two-thirds of the workforce - and we can provide them with a level of flexible and efficient support that the few remaining national pillar banks in Ireland cannot match.”
“Given the significant need to improve and develop better infrastructure across the country, it is also positive to see that Irish construction and manufacturing companies are topping the sectors we lend to, as they have an important role to play in driving this forward.”
O’Grady believes the dramatic exit of many banks from Ireland in the past 10 years leaves Linked Finance perfectly positioned to grow in lending and back more great Irish SMEs than ever before:
“Being able to turn around a lending decision for a loan of up to €500,000 in 24 hours is a unique proposition, and our objective is always to support SMEs to achieve the growth and targets they have set, or the valuable opportunities they want to pursue.”
“Flexible finance is where it’s at, and we are proud to play a pivotal role in supporting the success of businesses across Ireland. We remain committed to providing accessible, affordable, and transparent financing solutions to fuel the ambitions of the Irish SME sector.”
Linked Finance is confident of its continued growth and presence in the Irish market, particularly given its 95% customer satisfaction rate and the fact that one-in-two of its loans are provided to return customers. Notable companies that have raised funding with the lender in the past include the Rolling Donut, Kokoro Sushi Bento and Murphy’s Ice Cream.
