07 Sep 2017 | 04.37 pm
Big Red Cloud Borrows €100,000 On Linked Finance
Loan volume up by 240% in H1
07 Sep 2017 | 04.37 pm
Big Red Cloud has raised €100,000 in new loan finance using the Linked Finance lending platform. The lender says that loan volume in H1 2017 increased by 240% to €11.4m and that 1,000 loans have been effected since launch in 2013.
Linked Finance said that total loans made by the company now amount to over €31m and that €2.5m in interest has been paid to lenders.
Marc O’Dwyer, owner of Big Red Cloud, said the loan finance will be used for marketing purposes. “I was keen to experience P2P lending for myself so that we are better placed to see how it could benefit our clients,” said O’Dwyer.
“The application process was straightforward and we had the funds within a week. It’s great to see innovative funding solutions like this making progress in Ireland and I firmly believe that P2P lending will become a mainstay for Irish SMEs.”
The Big Red Cloud loan from Linked Finance has a three-year term and the interest rate is 11.2% per annum. According to Linked Finance, 464 people bid on the loan and it was funded in four days.
Linked Finance says it now has 16,000 registered users. Other borrowers who have used the platform include Viking Splash Tours, Lolly & Cooks, Murphy’s Ice Cream, Iconic Offices and the Irish Fairy Door Company.
Linked Finance CEO Niall Dorrian commented: “Once a company uses Linked Finance, we quickly become their preferred source of funding. Despite being a relatively new concept, we’re already seeing many businesses returning to the platform again and again. It’s a great indication that Irish business owners like what we do.”
From September 12, Linked Finance is introducing a range of changes across the various loan grades, terms and interest rates available on the platform.
The platform will be adjusting rates across the board, introducing a new 6-month term and launching an A+ grade. The new rates will range from 6% to 17.5%.
“We firmly believe that these new rates, grades and terms better reflect the demand from both lenders and borrowers,” said Dorrian. “They will help the platform to attract stronger businesses, competing more effectively with traditional sources of finance while still offering users a great blended return.”
Photo: Niall Dorrian (right) and Marc O’Dwyer. (Pic: Conor McCabe)