Linked Finance moves to fixed rate loans in change to growth strategy
Irish peer-to-peer lending platform Linked Finance has launched a new fixed rate loan offering for SMEs that has raised in excess of €600,000 in its first two weeks.
Linked Finance's previous model saw lenders bid for the interest rate they would offer to a company seeking capital. Now the business sets a fixed rate at the start of the lending process.
The change has been well received in its early days, with 21 business borrowing through the platform already.
The average loan on the platform now closes in under 30 hours. Linked Finance gives businesses looking for finance a credit rate by looking at the firm's history, stability, and ability to repay.
Linked Finance chief executive Niall Dorrian said the launch of the fixed rate loan has been a huge succeess.
"Borrowers now have certainty on the interest rate they will pay and can raise money quicker than before. Lenders can also now be certain of participating in a loan when committing funds.
"With our ambitious plans to grow lending to over €350m by the end of 2019, we are now looking at the involvement of strategic partners on to the platform. Possible partnerships include international and domestic institutions lending to the platform, and government entities looking to drive the growth of Ireland’s SME sector," he said.