The Strategic Banking Corporation of Ireland has launched a new source of funding for SMEs with a €17.5m hire purchase and leasing programme through regional lender SME Finance & Leasing Solutions.
The company will use lower cost SBCI funding to offer finance from €1,000 to €70,000 across the micro-SME market - sole traders or businesses employing up to 10 people.
This funding will be available at substantial discounts to typical rates for these products and borrowers will not be required to provide personal guarantees.
Kilkenny-based SME Finance & Leasing Solutions said it wants to give small firms a competitive new option for financing equipment, machinery and vehicles and make it easier for them to borrow.
It becomes the 11th lender to partner with the SBCI in providing low-cost funding to SMEs.
About 30,000 SMEs have benefited from over €1.4 billion in lower cost funding drawn down through SBCI-backed initiatives to date.
Nick Ashmore, chief executive at SBCI, said this is an exceptionally difficult time for all businesses, and he wants to lower financing costs for all SMEs, from sole traders to businesses employing hundreds of people.
"Today's announcement is a great new option for micro-SMEs that underlines our commitment to increasing choice for SMEs and increasing competition in the SME financing market by supporting new entrants to that market" Mr Ashmore said.
"We plan to add more on-lending partners and give SMEs better access to lower cost funding to help them address the enormous challenges they are facing," he added.
