Irish peer-to-peer lender Linked Finance says it is on track for a record year, reporting the strongest monthly lending volume in the platform’s 7-year history, according to a note from the company.
Linked Finance says it lent €5.5 million in July, more than 3X July 2020. Linked Finance says that during the month of July, the P2P platform lent money to 40+ different SMEs, with an average loan size of €136,000. Credit decisions were made in under 24 hours.
Year to date, Linked Finance says it has issued over €21.6 million in loans, comparing this amount to €19 million for the full year in 2019 – pre-COVID.
Linked Finance notes that it has seen growth in lending across all sectors, in particular among those reopening their operations following the easing of Covid restrictions, particularly the wholesale and retail trade, construction and manufacturing.
In January, Linked Finance became an approved non-bank lender offering loans under the Government’s COVID-19 Credit Guarantee Scheme (CCGS).
The company has since been awarded two furthers allocations of additional CCGS funding.
The platform also offers a new “Recharge SMEs loan” that may provide pubs, restaurants, accommodation providers, and cafes with a loan of up to €50,000 to help them reopen.
Niall O’Grady, CEO of Linked Finance, commented:
“We are delighted to report record performance in July, with strong demand for loans from businesses looking to restock and reopen as the economy begins its recovery from the Covid shock. The SME market is now clearly starting the process of recovery, although different categories are at very different stages in their recovery. Our Recharge SMEs loan allows companies to access up to €50,000 to support their immediate needs and help them to get back trading, while the CCGS is designed to offer low-cost working capital and capital expenditure loans for businesses affected by Covid-19.”
O’Grady added that every SME should have access to an alternative to banks in gaining access to credit.
Since launch, Linked Finance has originated over €162 million in loans to over 2,800 local businesses.
