Linked Finance hits €200m lending milestone
Linked Finance has lent €200m (£175m) to Irish small and medium-sized businesses since its inception in 2013, with the last three years accounting for half of the amount despite Covid.
The Irish alternative lender expects to lend €45m by the end of the year and €100m in 2024 as banks tighten their risk appetite or exit the Irish market completely.
Read more: Linked Finance: Irish SMEs positive despite economic upheaval
Over the last nine years, the group has provided loans to more than 3,300 Irish small- and medium-sized enterprises (SMEs). This year, it has seen strong demand for loans across retail, transport and construction sectors.
Linked Finance said investors have earned more than €19.4m in interest and typically earn annualised returns of more than eight per cent across a diversified portfolio of 50 loans on average.
“Hitting the €200m milestone in loans clearly demonstrates the success of a simple, fast SME lending model,” said Niall O’Grady, chief executive of Linked Finance.
“This is particularly important when the banks are either too slow for SMEs or leaving the country completely. Our platform regularly connects Irish SMEs with retail lenders who recognise their enormous potential and want to invest in them.”
Linked Finance has had several developments recently. It launched its open banking credit application process for SMEs to eliminate the majority of paperwork to get a loan. It also launched its merchant cash advance product in March and expanded the maximum loan size in June from €300,000 to €500,000.
Read more: Linked Finance increases loan size to half a million
The platform now has more than 28,000 registered users.
Over the next 12 months the firm will focus on digitisation and automation to improve its offering.
O’Grady added: “Linked Finance is introducing new products and increasing limits on existing loans to ensure we stay ahead of the banks. We pride ourselves on providing a model that is efficient and transparent, allowing Irish businesses to take control of their finances and meet their objectives.”
Read more: Linked Finance launches merchant cash advance