Linked Finance has become the first non-bank lender approved to offer the government’s Covid-19 Credit Guarantee Scheme (CCGS). The peer-to-peer lender joins AIB, Ulster Bank and Bank of Ireland as partners for the scheme.

The CCGS offers low-cost working capital and capital expenditure loans for businesses affected by Covid-19. Linked Finance will be able to offer borrowers decisions on loans of up to €250,000 in under 24 hours from receiving their documents.

Linked Finance will offer CCGS loans for terms of six months to five years at interest rates starting at 4.75%. The interest rate charged by Linked Finance will depending on the loan term and credit grading of the borrower.

Under the terms of the Covid-19 Credit Guarantee Scheme, applicants will also pay an additional risk premium charge to the government for its provision of a capital guarantee covering up to 80% of the potential capital loss in the event of default. This risk premium ranges from 0.15% for a one-year loan up to 0.68% for a six-year loan.

Niall Dorrian (pictured), chief executive of Linked Finance, said that his company’s addition to the list of approved CCGS partners is an important milestone in the diversification of how businesses access finance in Ireland.

In Association with

“We've been proactively supporting both new and existing customers to manage the impact of Covid-19 on their businesses, and we encourage companies to avail of our fast and simple lending service,” Dorrian added. “We want to help Irish SMEs with clear long-term viability to keep moving forward and get the cashflow support they need.”

The CCGS is operated by the Strategic Banking Corporation of Ireland through its finance partners. “The addition of another provider with fast application turnaround for this scheme increases the options available for SMEs in accessing finance for their business, to address the impact of the Covid-19 pandemic,” said Nick Ashmore, CEO of the SBCI.