Finance company Capitalflow has announced it is to commit €300 million in funding to Irish SMEs. The firm will finance small and medium sized businesses through a variety of financial products including asset finance, invoice finance and asset-based lending.

Capitalflow is headquartered in Dublin with offices in Belfast. The announcement is part of the company’s launch and growth strategy in the Irish market which aims to increase its workforce and market share significantly in the next two years.

Backed by London-based private equity firm Pollen Street Capital, Capitalflow has provided €50 million in the past six months to over 230 Irish SMEs.

Announcing detail of the company's growth plans, chief executive Harry Parkinson said the company would bring further competition to the Irish market.

“In the past Irish businesses were very dependent on traditional banks for finance but this has changed as new and more flexible options are introduced on the market.

“With a growing economy and a pro-business environment, the need to provide support and financial options to the SME sector has never been more relevant.

Volatility

“There remains some volatility and an uncertainty in the Irish market, particularly as Brexit negotiations are under way, which places added pressure to ensure a fully supported and buoyant domestic market.

“Businesses are looking for certainty and having access to finance gives them that certainty they need to invest in their businesses for the future. Today’s announcement is a clear indication of our ambition and plans for our Ireland business.”

According to the CSO, small and medium enterprises account for 99.7 per cent of all active business enterprises in the Republic.

Capitalflow managing director Ronan Horgan said there was a "need and demand" for finance among Irish SMEs. "We see particular demand across the construction, transport, manufacturing and tourism sectors which are key industries for employment and business growth in this country."