Linked Finance is making €50m in new wholesale funding available to SMEs after announcing it has lent €350m to Irish businesses since launch in 2013.

More than 4,500 SMEs have borrowed through the Linked Finance peer-to-peer lending platform to date.

The end-to-end process from initial application to receipt of funding of up to €50,000 takes as little as 24 hours.

The €50m in new wholesale funding represents a first for the Irish non-bank lending sector and comes following the private placement of senior and junior notes issued by a Section 110 company and compliant with EU securitisation regulation

The maximum loan size for applicants is €500,000, with terms of up to five years.

“In an SME sector that needs much more funding support, this new securitisation format establishes an efficient and repeatable funding structure for Linked Finance," said Niall O'Grady, CEO of Linked Finance.

"We expect to raise considerable further wholesale funding using this structure over the coming years and are looking forward to continuing to expand financing support for Irish SMEs.”

The average amount being borrowed by SMEs using Linked Finance has grown since 2013 from €18,000 to €115,000, which the firm said reflected the growing confidence of small businesses in leveraging larger funding amounts to fuel growth and expansion.

In the past 12 months, Linked Finance has experienced significant demand across various sectors, including retail, construction, manufacturing and professional services.

“We are delighted to reach this €350m lending milestone and to see such significant growth in our average loan size," said O'Grady.

"SMEs are the absolute backbone of the Irish economy - employing two-thirds of the workforce - and we can provide them with a level of flexible and efficient support that the few remaining national pillar banks in Ireland cannot match.”

“Given the significant need to improve and develop better infrastructure across the country, it is also positive to see that Irish construction and manufacturing companies are topping the sectors we lend to, as they have an important role to play in driving this forward.” 

O’Grady believes the exit of a number banks from Ireland in the past 10 years leaves Linked Finance well positioned to grow in lending and back more great SMEs than ever.

“Being able to turn around a lending decision for a loan of up to €500,000 in 24 hours is a unique proposition, and our objective is always to support SMEs to achieve the growth and targets they have set, or the valuable opportunities they want to pursue," he said.

“Flexible finance is where it’s at, and we are proud to play a pivotal role in supporting the success of businesses across Ireland. We remain committed to providing accessible, affordable, and transparent financing solutions to fuel the ambitions of the Irish SME sector.”

Notable companies that have raised funding with the lender in the past include the Rolling Donut, Kokoro Sushi Bento and Murphy’s Ice Cream.

Photo: Niall O'Grady. (Pic: Supplied)