After recently being approved to serve as a Coronavirus Credit Guarantee Scheme (CCGS) provider, Linked Finance claims it has received a fairly large number of new enquiries from Ireland-based small businesses. The firm’s management noted that there’s a growing appetite for non-bank lending services across the nation during these unprecedented times.
The platform’s management said that they’re proud to have been chosen as the first non-bank lender to be approved by the government as a Coronavirus Credit Guarantee Scheme lender.
They added that since launching their loan offering last week, they’ve now received “record levels of interest” from SMBs looking to take advantage of the scheme via their platform.
According to Linked Finance, the large number of such requests indicates that there’s a significant appetite for a better, faster, and overall more efficient approach to issuing loans, and providing support through excellent customer service (with loans reportedly being approved within 1 business day or 24 hours).
The Linked Finance team further noted that they’re looking forward to working cooperatively with the Strategic Banking Corporation of Ireland (SBCI) in order to offer this government initiative. They’re also pleased to support local small businesses during these difficult times and onwards into what will hopefully be a complete economic recovery.
The CCGS scheme was introduced back in July 2020 by the Department of Enterprise, Trade and Employment. It’s managed through the SBCI, which is a national organization that intends to make affordable or low-cost credit available to Ireland’s small businesses.
Like the COVID-19 Business Interruption Loan Scheme (CBILS) offered in the United Kingdom, the CCGS scheme lets small businesses in Ireland quickly gain access to low-cost financing options so that they can continue to maintain operations during the pandemic.
Linked Finance provides CCGS loans of up to £221,000 for terms ranging anywhere between 6 months to a 5-year period, with interest rates beginning at 4.75%.
The CCGS scheme requires that applicants pay a risk premium charge to the government. This fee ranges anywhere between 0.15% for a 1-year loan and as much as 0.68% for a 6-year loan. The government has committed to guaranteeing as much as 80% of the outstanding loans’ value in case there’s a default.