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The SBCI and SME Finance & Leasing announces an additional €10m in lower cost funding for SMEs throughout Ireland

24 Nov 2021

24 November 2021 – The Strategic Banking Corporation of Ireland (SBCI) has today announced a €10m extension to its partnership with regional lender, SME Finance & Leasing Solutions DAC (SME Finance & Leasing), headquartered in Kilkenny but offering finance throughout Ireland.

This additional funding brings to €27.5m the total SBCI funding that’s been provided to SMEs through SME Finance & Leasing’s Hire Purchase and Leasing programme, which allows for the hire purchase or leasing of equipment, machinery and vehicles.

SME Finance & Leasing will use this additional lower cost SBCI funding to offer finance from €1,000 to €100,000 across the micro-SME market (typically sole traders, Agri businesses or SMEs employing up to 10 people), providing a variety of finance options across all sectors. Crucially, this funding provides a discount of 5.2% on typical rates for these products and borrowers will not be required to provide personal guarantees.

SME Finance & Leasing aims to further enhance access to Hire Purchase and Leasing for micro-SMEs, giving them a competitive option for financing equipment, machinery and vehicles and making it easier for them to borrow.

Both the leasing and hire purchase products will be available immediately, with further details at www.sbci.gov.ie and www.smeleasing.ie.

SME Finance & Leasing was the seventh non-bank lender to team up with the SBCI in 2020, as part of its efforts to enhance competition in the SME funding market by supporting a combination of banks and non-banks, as well as a mix of long-established institutions and newer entrants to the market.

Speaking about the announcement, Minster for Finance, Paschal Donohoe TD said:

“I welcome this announcement from the Strategic Banking Corporation of Ireland of a €10m extension to the established lending partnership with SME Finance & Leasing Solutions. It will ensure ongoing lower cost borrowing for specialist equipment, machinery and vehicles, providing opportunities for our vitally important SME sector to expand and grow despite the significant challenges of not only COVID-19 but also adjusting to Brexit.”

June Butler, Chief Executive at SBCI said:

“As businesses begin to look forward and plan for a post COVID-19 world, they are looking at implementing changes to their product base, supply chains and operating models to address current challenges, and capitalise on growth opportunities. Lower-cost financing is essential in implementing these changes and enabling Irish businesses to thrive into the future. We are delighted to announce the extension of our partnership with SME Finance & Leasing today. This additional funding underlines our commitment to increasing choice and competition in the SME financing market by supporting new and non-bank entrants, and it also gives SMEs better access to lower cost funding when they need it the most.”

Eugene O'Donovan, Chief Executive at SME Finance & Leasing said:

We established SME Finance & Leasing Solutions DAC to become the leading asset finance specialist SME Lender in the Irish market. We are delighted to announce our continued collaboration with SBCI today enabling us to facilitate greater access to asset finance for Irish businesses at a discounted rate.

Our partnership with the Strategic Banking Corporation of Ireland, a state backed agency, continues to afford us the ability to build deep, long lasting relationship with the SME market while providing excellent customer service and a quick turnaround on credit applications, something we pride ourselves on. ”.