Non-bank lender Linked Finance raises loan cap to €500,000
Non-bank lender Linked Finance has raised the ceiling on its SME loan to €500,000, considered the largest on the market.
The lending platform’s previous maximum loan size was €300,000.
Linked Finance’s peer-to-peer platform connects investors who have funds to lend with borrowers. The company said raising the deal size cap will increase the pool of potential customers, including some businesses with more complex financing needs.
For borrowers, the fast pace of decision-making is seen as attractive, with the end-to-end process from initial application to receipt of funding taking just 48 hours.
The higher appetite for loans also means more competition for banks in the larger SME segment of the market, where they have so far resisted new entrants.
Linked Finance responds to customer demand for larger loans that are accessible simply and quickly, entering a loan size segment of the market more typically occupied by traditional banks, but only with secured loan options.
Linked Finance CEO Niall O’Grady says his platform’s ability to make quick decisions through a simple, user-friendly application process is an advantage as companies grapple with a complex business environment , marked by the uncertainty of rising input costs.
“The fact that 40% of the loans we’ve made this year are to loyal customers is a sign that our service is hugely popular with business owners who are happy to move a growing portion of their credit needs like a serious alternative to traditional banks,” he said. said.
He said Linked Finance had now made loans to businesses in every county across the country, amounting to more than 193 million euros.