Sunday, June 23, 2024

Linked Finance Hits €300m Milestone in Lending to SMEs

Linked Finance, one of Ireland’s leading alternative lending platforms, has recently passed the €300m milestone in lending to SMEs.

The announcement follows a record year for the business in 2023, lending over €59 million to almost 600 Irish SME businesses.

With over 4,200 SMEs benefiting from funding since its launch in 2013, Linked Finance continues to play a vital role in driving economic growth and empowering SMEs nationwide.

Further growth is anticipated this year. With demand in the market strong, Linked Finance is forecasting total lending to SMEs of €80 million in 2024.

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.

One notable trend is the significant growth in loan sizes, with the average loan size increasing from €18,000 in 2013 to €115,000 this year. This trend reflects the growing confidence of SMEs in leveraging larger funding amounts to fuel their growth and expansion initiatives.

Commenting on the €300 million milestone, Niall O’Grady, CEO of Linked Finance, said:

“Surpassing the milestone of €300 million in lending to SMEs is a testament to the resilience and innovation of Irish SMEs, as well as the trust and confidence placed in Linked Finance as their preferred lending partner.

Passing this significant milestone for the business, along with achieving regulation by the Central Bank of Ireland, has also made Linked Finance an even more trusted option for investors seeking a place where they can connect with growing and established Irish SMEs to put their funds to work and earn excellent returns.

We are proud to play a pivotal role in supporting the growth and success of businesses across Ireland, and we remain committed to providing accessible, flexible, and transparent financing solutions to fuel the ambitions of Irish businesses.”

The success of Linked Finance demonstrates that the alternative lending model works and offers excellent returns to retail investors who have earned more than €25 million in interest and typically earn annualised returns of up to 8% across a diversified portfolio.

Notable companies that have raised funding with Linked Finance in the past include the Rolling Donut, Kokoro Sushi Bento, Murphy’s Ice Cream, and the Irish Fairy Door Company.

Last year, Linked Finance experienced significant demand across various sectors, with the top industries seeking loans including Wholesale and Retail, Construction, Manufacturing, and the Hotel and Hospitality sector. This diverse demand underscores Linked Finance’s commitment to supporting businesses across a wide range of sectors.

As part of its commitment to providing innovative financial solutions, Linked Finance has partnered with the Strategic Banking Corporation of Ireland (SBCI) to launch the Ukraine Credit Guarantee Scheme.

Through this partnership, Linked Finance will lend €50 million to SMEs across Ireland at discounted rates allowing eligible customers affected by the economic consequences of the conflict in Ukraine access to unsecured loans of up to €250,000, at a discount of 20%.

Linked Finance has recently secured authorisation from the Central Bank of Ireland under the new European Union regulations for crowdfunding providers. This accreditation adds an additional layer of security for retail investors who are supporting SMEs in the Irish market, reaffirming Linked Finance’s dedication to transparency and compliance.

With €300 million in funding already provided to local businesses and a growing list of satisfied clients, Linked Finance is primed to continue its growth and presence in the Irish market.

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