Linked Finance offers payment break and new loan facility to SMEs

Irish peer-to-peer lending platform Linked Finance is offering all borrowers a two-month payment break, and introducing a new instant loan facility to help coronavirus-hit businesses.

Earlier this week, Linked Finance applied an automatic blanket two-month payment break with no forms required to all of its loans across the restaurant, bar, pub and hotel trades.

Read more: Zopa offers payment freeze to borrowers who need it

Read more: How P2P lenders can slot into government’s SME coronavirus support

The platform is also preparing to launch an innovative new loan facility with a deferred repayment feature to help small- and medium-sized enterprises (SMEs) who require working capital due to the impact of coronavirus. This will allow businesses to get the finance they need with immediate effect, without starting repayments for three months.

“We have been actively engaging with our borrowers who have been hard hit by the need to close stores, reduce opening hours or who are experiencing disrupted supply chains,” said Niall Dorrian, chief executive of Linked Finance.

“Many have seen their takings dry up overnight.

“Irish SMEs are the lifeblood of the Irish economy and we want to support them through this unprecedented crisis.

“We have been overwhelmed with the support we are getting from our base of lenders for the proactive measures.

“They are ordinary individuals and often business owners themselves; they really understand what our borrowers are going through.

“We have supported over 2,500 businesses across every county in Ireland and believe that the P2P lending sector can provide a vital source of support for businesses in these difficult times.

“We are actively engaging with the government to ensure that the alternative lending sector is part of the wider solution for SMEs during this uncertain time.”

Read more: Coronavirus could boost P2P returns