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The SBCI and Fexco Asset Finance announce €40m extension to SME lending partnership

News
18 Oct 2021

Friday 15 October 2021

The Strategic Banking Corporation of Ireland (SBCI) and Fexco Asset Finance (FAF) today announced a €40m extension to its partnership which allows Irish SMEs to borrow at a lower cost for specialist equipment and vehicles.

This partnership - first established in 2016 - has to date lent in excess of €100m to its Irish SME customers.

The extension of the funding package under the SBCI’s Leasing and Hire Purchase Scheme continues to allow Irish SMEs to borrow from FAF at a lower cost for equipment and vehicles, and is aimed at supporting their investment in expansion and job creation as the economy emerges from the challenges of the pandemic.

FAF is a well-established Finance House in the Irish market, offering finance solutions including lease and hire purchase business loans. The Scheme allows qualifying SMEs to continue to borrow from FAF at an interest rate that is a 2.07% discount on FAF’s normal market rates.

Speaking at Fexco RDI Centre, Minister for Finance, Paschal Donohoe TD, said:

“I am pleased to announce this €40m extension to the established lending partnership between the Strategic Banking Corporation of Ireland and Fexco Asset Finance. It will ensure ongoing lower cost borrowing for specialist equipment 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.”

SBCI CEO, June Butler said:

“The role of the SBCI in supporting companies like Fexco Asset Finance has never been more important than during this crucial period when businesses are recovering from the effects of the pandemic. This Scheme will make it easier for companies to borrow money to finance asset types that can be harder to borrow against, such as fixed equipment and plant machinery. After the success of our first five years in partnership, I am delighted to announce this €40m extension.”

Fexco Asset Finance CEO, Mike O’Halloran said:

“Our collaboration with SBCI has allowed us to support thousands of Irish SMEs with funding at a discounted rate. We’re thrilled to be able to continue the partnership with this extension to the scheme and promise to continue to provide the excellent customer service and quick turnaround of loan applications that are the hallmark of our approach to doing business. With SMEs employing over 1m people in Ireland we know that providing support is vital to the country’s economic success.”