For Lending Partners

The Strategic Banking Corporation of Ireland (SBCI) is interested in promoting competition for SME business by increasing the number of finance providers in the market as well as diversifying the range of lending products available to SMEs.

This mandate enables the SBCI to work with traditional and non-traditional providers of credit, subject to their meeting the requirements to become a lending partner.

What’s the business model?

Essentially the SBCI will serve as an on-lending financial institution, providing low cost wholesale finance to lending partners in the SME market. Central to our business model is the ability to make credit providers’ products more competitive, by lowering their funding cost.

To do this, the SBCI will:

  • Source funding on favourable terms from our current funding partners (KfW, the EIB, and the ISIF),
  • Add a small margin to the cost of funds provided to the lending partners to cover costs, and
  • Ensure that the benefit of the favourable terms is passed through to the extent possible to the final borrower (SME).