Linked Finance launch new loan for businesses affected by coronavirus
26 March 2020 | 0
Linked Finance has launched a new Deferred Start Loan for businesses affected by the coronavirus.
The peer-to-peer (P2P) lending platform’s 15-month loan allows businesses to borrow up to €100,000, with repayments due in 12 monthly instalments after the first three months, during which no interest or capital repayment will be paid.
At a time of reduced cashflow, many businesses are in need of working capital. The loan can help SMEs to adapt to the new normal, for example, by investing in online services, buying a van for deliveries or equipping staff to work from home.
The application process remains in line with Linked Finance’s usual loans – businesses must fill in an online form and provide financial documents. There are no assets secured against the loan so also no legal hurdles or fees involved, and early repayment can be made without penalty.
Last week, Linked Finance unveiled several other financial supports for its customers during this time.
It applied a blanket two-month payment break to all loans across the hospitality trade. For borrowers in other affected industries, the P2P platform offered a break in the repayment schedule of existing loans by up to three months.
“This is an extremely difficult time for many Irish SMEs, but we want to send a message that there are sources of financial support available that can be accessed quickly and easily,” said Niall Dorrian, chief executive of Linked Finance. “The new Deferred Start Loan we have launched allows companies access to much needed capital, whilst being able to delay repayment of interest and principal for the first three months.
“This is part of a package of measures Linked Finance has introduced to support businesses in every country of Ireland who are facing unprecedented challenges due to coronavirus. We hope the Government will consider our sector as a key channel that can be used to quickly deploy support to help SMEs that are the lifeblood of employment throughout the country.”