Linked Finance Launches Hospitality Sector Loan Scheme
Peer-to-peer (P2P) lending platform Linked Finance has been awarded an additional €5 million in funds under the government's flagship COVID-19 Credit Guarantee Scheme (CCGS), and has launched a new loan scheme to help support the hospitality sector as it reopens.
Linked Finance is also launching a new "Recharge SMEs" scheme which will provide pubs, restaurants, accommodation providers, and cafes with a loan of up to €50,000 to help them reopen, restock and rehire as pandemic restrictions are eased.
The term of the recharge loan is 13 months, with no repayment due for the first month.
Last year, Linked Finances applied a blanket two-month payment break to all its loans across the restaurant, bar, pub, and hotel trades, alongside other flexible payment initiatives.
In January, the platform became the first non-bank lender to offer loans through the CCGS.
The group has funded over €10 million worth of loans to SME customers to date, highlighting the success of alternative lenders participating in the scheme.
The lender has now been awarded a second tranche of CCGS funds by the Strategic Banking Corporation of Ireland (SBCI), bringing the total funds it has available under the scheme to €15 million.
Linked Finance has facilitated almost €13 million in lending to SMEs across Ireland to the end of April 2021, a 19% YoY increase in lending.
The company has seen strong growth in lending across all sectors, in particular among those returning to operations following the easing of restrictions, including wholesale and retail trade, construction, and manufacturing.
Niall O'Grady, CEO of Linked Finance, said being allocated a second tranches "demonstrates the success of alternative lenders participating in the scheme, and shows the improving range of options there are for businesses looking to access finance fast and efficiently in a seamless online process."
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.