Latest news with #LinkedFinance
BreakingNews.ie
28-05-2025
- Business
- BreakingNews.ie
Two thirds of Irish SMEs concerned about impact of new global trade war
A record high in optimism levels seen amongst Irish small and medium sized businesses (SMEs) several months ago has dropped back to more average levels as the turmoil of high US tariff announcements - and subsequent pauses - drives more uncertainty. That is according to a new business confidence survey by Linked Finance. Advertisement Business optimism amongst all SMEs was 67 per cent at the end of Q4 2024, but this has dropped back to a more average 62 per cent, for Q1 2025. While there has been no 'cliff edge' fall in business activities, they remain in slightly negative territory year-on-year. SMEs surveyed for the sentiment tracker reported a drop in business of -5 per cent at end of Q1 2025, compared to a dip of -3 per cent for the same period in 2024. Business activity and outlook There was a significant upward spike in activities by exporters last quarter, likely due to a surge in orders to fill warehouses ahead of signalled changes to trade and new tariffs - announced by US president Donald Trump on April 2nd last. The survey shows that 36 per cent of exporting SMEs saw higher business activity in the first quarter of this year, compared to 25 per cent of SMEs focused on the indigenous sector. Advertisement Concerns around a potential trade war are higher among the larger Irish SMEs surveyed, business based outside Dublin, and those in the retail/wholesale sector. One-in-four are very concerned about the issue, post the initial announcement of trade tariffs in the US. In terms of SMEs' expectations for business activity in Q2 2025, there has been a major swing in that of exporters, with 34 per cent more reporting an expected drop in business, year-on-year. This may however be related to the fact that so much export activity was frontloaded in Q1 of this year. More positively, micro-businesses (which have 1-3 employees) have posted their lowest level of concern since Covid shuttered doors in 2020, with almost seven in 10 confident of the same, or a higher level, of business activity this quarter. While employment levels remain strong, businesses based in Dublin are driving jobs growth, while those based outside the capital are in neutral territory. Advertisement Geopolitical turbulence Linked Finance chief executive Niall O'Grady said that geopolitical turbulence has caused a rapid return to long-term average levels of business confidence, with an uncertain outlook in the medium term. 'While there has been a dip in optimism, and that gap between businesses in the capital and outside the capital continues to exist, Irish SMEs have shown resilience in the past - given the many challenges to trade in recent years - including Brexit and Covid. Micro-businesses only saw a small decline in optimism, and price rises are pulling back, which is good for customers. Linked Finance chief executive Niall O'Grady. 'Given the turbulence and uncertainty experienced since the start of the year, I am not surprised by some of these results; but overall, Irish SMEs are weathering the challenges well. They are understandably concerned about the macro environment, but they are sourcing new markets - which is something many SMEs have been adept at - and may focus on more in the long term.' The quarterly Business Confidence survey is conducted by Ipsos B&A on behalf of Linked Finance, which is Ireland's leading SME peer-to-peer lender. In operation since 2013, Linked Finance recently passed the lending milestone of €350 million, and has just raised €50 million in wholesale funding that is now available to its SME borrowers. Advertisement Prices and profits Year-on-year comparisons show price rises finally declining, with more than half of SMEs maintaining their prices year-on-year. Micro-businesses reported that they are less likely to increase prices, compared to last year. Those SMEs that are currently implementing price increases are located throughout the country, whereas 12 months ago, the firms that were increasing prices were mainly Dublin-based. Profitability remains a key pressure point for SME businesses, with one-in-three reporting that operational profit is lower year-on-year, and it has yet to return to pre-Covid levels. Businesses with between 4 and 9 employees are feeling the pinch most with regard to profitability, while businesses based in Dublin are doing better, with 4-in-10 having higher profits year-on-year. Advertisement Tariffs Exporting SMEs were the most concerned about the US's effort to increase tariffs significantly, with 87 per cent either very concerned, or somewhat concerned. On average, 66 per cent of businesses are concerned about a global trade war, with 80 per cent of those with 10 or more employees reporting that they are concerned. Employment levels Medium and large SMEs (with 10-250 employees) are driving job creation, with 25 per cent of those surveyed reporting higher employee levels compared to Q1 2024. While employment levels generally remain positive overall, sectors such as retail and wholesale are down 5 per cent year-on-year in their employee numbers. Business based in Dublin are driving job growth, while those based outside the capital remain neutral in the same period. Retaining current headcount is the general status, with no upward trend of note, in all sectors combined.
RTÉ News
14-05-2025
- Business
- RTÉ News
Linked Finance hits €350m milestone in lending to SMEs, launches new fund
Non-bank lender Linked Finance said it has now loaned €350m to SMEs since its launch in 2013, adding that over 4,500 SMEs have now benefitted from its funding. Linked Finance said that companies borrowing through the platform are attracted by the fast pace of decision-making, with the process from initial application to receipt of funding taking as little as 24 hours for loans of up to €500,000. It noted the significant growth in loan sizes to SMEs, with the average amount borrowed increasing from €18,000 in 2013 to €115,000 today. "This trend reflects the growing confidence of SMEs in leveraging larger funding amounts to fuel their growth and expansion initiatives," it said. Over the past year, Linked Finance said it was seeing significant demand across various sectors, with the top industries seeking loans including retail, construction, manufacturing and professional services. Linked Finance also said today they have successfully raised over €50m in new wholesale funding that is now available to Irish SMEs. It said its new innovative fund is a first for the Irish non-bank lending sector and came about after the private placement of senior and junior notes issued by a Section 110 company and compliant EU securitisation regulation. The maximum loan size for applicants is up to €500,000, with terms of up to five years. Linked Finance's CEO Niall O'Grady said in an SME sector that needs much more funding support, this new securitisation format establishes an efficient and repeatable funding structure for Linked Finance. "We expect to raise considerable further wholesale funding using this structure over the coming years and are looking forward to continuing to expand financing support for Irish SMEs," he said. Niall O'Grady said he believes the exit of many banks from Ireland in the past 10 years leaves Linked Finance perfectly positioned to grow in lending and back more great Irish SMEs than ever before. "Being able to turn around a lending decision for a loan of up to €500,000 in 24 hours is a unique proposition, and our objective is always to support SMEs to achieve the growth and targets they have set, or the valuable opportunities they want to pursue," he said. "Flexible finance is where it's at, and we are proud to play a pivotal role in supporting the success of businesses across Ireland. We remain committed to providing accessible, affordable, and transparent financing solutions to fuel the ambitions of the Irish SME sector," he added. Companies that have raised funding with the lender in the past include the Rolling Donut, Kokoro Sushi Bento and Murphy's Ice Cream.
Irish Times
14-05-2025
- Business
- Irish Times
Linked Finance raises more than €50m in new funding for SMEs
Irish peer-to-peer lender Linked Finance has raised more than €50 million in new wholesale funding that is now available to Irish SMEs. Linked Finance connects local businesses who need loans with an online lending community, comprising members of the public, institutions and other investors who are willing to lend to Irish SMEs at attractive interest rates. The company, which was launched in 2013, has so far facilitated more than 4,500 loans for Irish SMEs to the value of about €350 million. The end-to-end process from initial application to receipt of funding takes about 24 hours for loans of up to €500,000, with terms of up to five years. READ MORE The average amount borrowed has increased from €18,000 in 2013 to €115,000 today. In the last 12 months, Linked Finance has seen significant demand across various sectors, with the top industries seeking loans including retail, construction, manufacturing and professional services. Chief executive Niall O'Grady said the group was 'delighted' to reach the €350 million lending milestone and to see 'such significant growth' in its average loan size. 'SMEs are the absolute backbone of the Irish economy – employing two-thirds of the workforce – and we can provide them with a level of flexible and efficient support that the few remaining national pillar banks in Ireland cannot match,' he said. 'Given the significant need to improve and develop better infrastructure across the country, it is also positive to see that Irish construction and manufacturing companies are topping the sectors we lend to, as they have an important role to play in driving this forward.' Mr O'Grady said he believes the exit of many banks from Ireland over the past 10 years has left Linked Finance 'perfectly positioned' to grow in lending and back more Irish SMEs than ever before. 'Being able to turn around a lending decision for a loan of up to €500,000 in 24 hours is a unique proposition, and our objective is always to support SMEs to achieve the growth and targets they have set, or the valuable opportunities they want to pursue,' he added. Companies that have raised funding with the lender in the past include the Rolling Donut, Kokoro Sushi Bento and Murphy's Ice Cream.
