Irish SMEs given €300m funding boost

A finance lender has confirmed it is committing €300m in funding to Ireland’s small and medium-sized enterprises (SMEs) through a variety of financial products from asset finance and invoice finance through to asset-based lending.

Capitalflow, who have already provided €50m in funding to more than 230 Irish SMEs in the last six months, have announced the new funds as part of its launch and growth strategy within the Irish market.

Harry Parkinson, chief executive, Capitalflow, believes the new funds will bring further competition to the Irish lending market, giving SMEs greater opportunity to grow.

“In the past, Irish businesses were very dependent on traditional banks for finance but this has changed as new and more flexible options are introduced on the market,” said Parkinson.

“With a growing economy and a pro-business environment, the need to provide support and financial options to the SME sector has never been more relevant.

“There remains some volatility and an uncertainty in the Irish market, particularly as Brexit negotiations are underway which places added pressure to ensure a fully supported and buoyant domestic market.

“Businesses are looking for certainty and having access to finance gives them that certainty they need to invest in their businesses for the future.

“Today’s announcement is a clear indication of our ambition and plans for our Ireland business.”

According to the Central Statistics Office (CSO), SMEs now account for 99.7 per cent of all active businesses within the Republic.

Ronan Horgan, managing director, Capitalflow, believes there remains a strong “need and demand” for finance among Irish small business owners.

“We see particular demand across the construction, transport, manufacturing and tourism sectors which are key industries for employment and business growth in this country,” said Horgan.

Date published 17 Oct 2016 | Last updated 17 Oct 2016