ISIF provides fresh boost to SME loans

28th November 2016

Ireland’s small and medium-sized enterprises (SMEs) will have a greater opportunity to secure access to finance after it was announced the government’s Ireland Strategic Investment Fund (ISIF) has invested €30m for a stake in Finance Ireland Investment, a lender which focuses heavily on the SME sector.

It’s certainly a significant move given that it’s the first time the ISIF has invested in a non-bank lender. Finance Ireland was founded 14 years ago and advances loans to agriculture, motor and commercial property firms, as well as individual borrowers.

Finance Ireland is on course to lend more than €300m in 2016, with the new funding anticipated to lead to a substantial amount of new loans available to SMEs in the coming years.

Irish SMEs are sure to welcome fresh competition in the lending market, with Central Bank surveys continuing to show that small firms pay among the highest rates for their loans throughout the eurozone.

Billy Kane, founder, Finance Ireland, said: “This significant investment by ISIF underpins our very ambitious growth plans for the coming years.

“Our mission is to create a major non-bank lender in the Irish financial landscape, offering customers a real alternative to the traditional banking sector, and we are well on the way to achieving that.”

Eugene O’Callaghan, director, ISIF, said: “ISIF was attracted by the opportunity to support an established and experienced management team to expand its non-bank platform and in particular grow its SME and agri-leasing businesses.

“This investment complements the products provided by other non-bank platforms in the SME sector that ISIF has supported.”

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Or submit an enquiry