Linked Finance has been approved as a lender under the Government’s Covid-19 Credit Guarantee Scheme (CGS).
The €2bn CGS is designed to offer low-cost loans for businesses affected by the pandemic.
Linked Finance will be able to offer borrowers decisions on loans of up to €250,000 in under 24 hours from receiving their documents, according to a statement from the company.
The peer-to-peer (P2P) lending platform is the first non-bank lender to be approved under the CGS. “We are very pleased that the Government has approved Linked Finance as a Covid-19 Credit Guarantee Scheme lender, recognising the innovation and high levels of technical underwriting skill that we provide to Irish businesses,” said Niall Dorrian, CEO of Linked Finance. “It is also an important milestone in the diversification of how businesses access finance in this country, a trend that's been happening in many European markets in response to this pandemic,” he added. Linked Finance will offer loans of up to €250,000 for terms of six months to five years at interest rates starting at 4.75pc.
The interest rate charged by Linked Finance will depend on the term of the loan and credit grading of the borrower.