Irish peer-to-peer lender Linked Finance has raised more than €50 million in new wholesale funding that is now available to Irish SMEs.
Linked Finance connects local businesses who need loans with an online lending community, comprising members of the public, institutions and other investors who are willing to lend to Irish SMEs at attractive interest rates.
The company, which was launched in 2013, has so far facilitated more than 4,500 loans for Irish SMEs to the value of about €350 million.
The end-to-end process from initial application to receipt of funding takes about 24 hours for loans of up to €500,000, with terms of up to five years.
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The average amount borrowed has increased from €18,000 in 2013 to €115,000 today.
In the last 12 months, Linked Finance has seen significant demand across various sectors, with the top industries seeking loans including retail, construction, manufacturing and professional services.
Chief executive Niall O’Grady said the group was “delighted” to reach the €350 million lending milestone and to see “such significant growth” in its 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,” he said.
“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.”
Mr O’Grady said he believes the exit of many banks from Ireland over the past 10 years has left Linked Finance “perfectly positioned” to grow in lending and back more 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,” he added.
Companies that have raised funding with the lender in the past include the Rolling Donut, Kokoro Sushi Bento and Murphy’s Ice Cream.
