Linked Finance issues record number of loans in three months
Loans from Linked Finance to Irish small and medium enterprises (SMEs) passed the €11m mark in the first three months of 2019.
The strong start to the years means the peer-to-peer (P2P) lending platform is on track for record growth this year, having delivered the strongest quarter in the platform’s six year history.
In the first quarter of this year Linked Finance issued €11.3m in loans to SMEs, an increase of 32pc on the same period last year.
Launched by Peter O'Mahony in 2013, with the aim of using technology to connect SMEs looking for finance with lenders keen to back Irish businesses while earning attractive returns, the platform has now provided more than 2,000 loans and €92m in funding to businesses across the country and in every sector of the economy.
Niall Dorrian, CEO of Linked Finance, said: "Despite the prevailing uncertainty around Brexit, we’ve continued growing and it clearly demonstrates that our commitment to providing the fastest, most efficient option for business loans in the market is helping us to attract increasing numbers of Irish companies to the platform."
"The strong appetite among lenders, who have now earned more than €7m in interest, means that we can now provide larger loans, faster than ever before and this is attracting bigger businesses with more significant funding requirements," Mr Dorrian added.
The platform's popularity has quickly risen since its foundation, and it now has more than 21,400 registered users, as well as a number of large institutional investors.
During the first three months of this year the average loan issued by the platform was €70,000.
Lenders who have supported SMEs through the platform have earned more than €7.1m in interest and received more than €50.4m in repaid loans since 2013. They typically earn annualised returns of between 7.5pc and 8.5pc.
Since its foundation, the speed of receiving credit decisions has also improved, with the average loan request funded in less than 24 hours.
Examples of SMEs supported during the first quarter of 2019 include Meath-based coffee distributor, Coffee Perfection and Limerick dairy producer, Clorane Farm.