The Strategic Banking Corporation of Ireland (SBCI) has launched its second phase of funding for Irish SMEs with a €50 million equipment, machinery and vehicle finance programme through specialist SME lender Finance Ireland.

This phase builds on the €400 million loan programme for SMEs set up with AIB and Bank of Ireland earlier this year.

The new products, announced today and immediately available, are:

• SME Leasing: 2-5 year lending for cars, commercial vehicles, plant and machinery
• Hire Purchase: Similar to SME Leasing but allows SME to take ownership of the asset at the end of the financing period
• Contract Hire (Vehicle Leasing): 3-4 year terms for vehicles with a lower monthly payment than lease or hire purchase
• Rental Agreements (Vendor Finance): 2-5 year leases for smaller office equipment (photocopiers, printers) or specialist equipment for medical practitioners/dentists

SBCI Chief Executive Nick Ashmore [pictured] said: “Today we are bringing our first non-bank finance provider on-board which will help drive competition in Irish SME lending. Greater competition will make it easier and cheaper for Irish SMEs to borrow.

Finance Ireland will bring lower cost, longer term finance for SMEs who plan to invest in equipment, machinery or vehicles.”

In Association with

The new loan programme coincides with PwC's 2015 SME Pulse Survey, which says 44% of surveyed Irish SMEs say the inability to finance business growth is a key business threat.

The survey also found that 25% of Ireland's SMEs are planning new borrowings in 2016, up from 12% last year. 20% plan to raise new equity, up from last year's 8%.

Finance Ireland Executive Chairman Billy Kane said: “This deal will make more funding available to the SME sector which has been suffering due to a lack of available credit with so few competitors in the market. It will also do so at a lower cost which is an additional benefit for SMEs.

Kane continued: "Our Direct Sales team will be interacting directly with SMEs to ensure their requirements for highly competitive loans for cars, vans, forklifts and specialist equipment are met with these funds.”

The SBCI is working with other bank and non-bank funding providers to bring in new participants to the Irish market to act as on-lenders.

SMEs eligible for SBCI loans are “independent enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding €50m and/or an annual balance sheet total not exceeding €43m”.