Business lender Capitalflow intends to lend €2bn to Irish SMEs and sole traders over the next year, double the amount it has lent to Irish customers since 2016.

The Dublin-based company provides flexible finance options to scaling small businesses and property investors through its digital platform.

In the past two years, Capitalflow has doubled its lending to new customers and seen a general increase in demand for business loans across all sectors, supporting an expansion of its distribution and partner network.

“We have reached €1bn in lending since we started up seven years ago – we have ambitions to double that again in the next few years," said Stephen Byrne, chief commercial officer of Capitalflow.

"We have seen how it can be challenging to access funding for non-bank lenders whilst the pillar banks have increased their market share by buying up the KBC and Ulster Bank loans. 

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"We have the support of our parent bunq, which is a fully licensed EU bank, and we can respond to the needs of businesses across many sectors and see 2023 as a year to broaden our appeal and to enhance our finance offerings to SMEs.”

Capitalflow was acquired by Dutch digital bank, Bunq, in late 2021, and the increase in funding comes amid drastically reduced competition in the Irish market with the exits of Ulster Bank and KBC Bank Ireland.

In 2022, the company saw resurgence in demand for business finance across construction, transport and tourism, along with an increase in demand for cashflow lending following the aftermath of the pandemic in areas like refrigeration and waste management.

Sectors such as retail, dental and healthcare also saw strong growth while commercial real estate transactions continued to be exceptionally strong both from trading businesses acquiring new properties and from the investment market.

In addition to existing offerings in equipment and vehicle finance, property finance, and invoice finance, Capitalflow has also introduced products in green finance, cashflow and term loans to meet the need of SME customers.

“Capitalflow also has an active partnership with the Strategic Banking Corporation of Ireland (SBCI) across various schemes and we wish to build on this through 2023," said Byrne.

“Our approach is to be transparent and open with our customers and partners. We want to make lending easier, and we put people first in everything we do. Behind every business is an ambitious individual who is looking for our support to help them achieve their goals," he added.

"We deliver funding directly to our growing customer base efficiently – offering great customer service through our nationwide team and partners, making finance simple and putting people first.”

Capitalflow was founded by Ronan Horgan with equity investment from Pollen Street Capital, and now employs more than 80 decision makers.

(Pic: Getty Images)