Capitalflow, Ireland’s newest independent finance provider, has announced it will commit €300 million in finance to Irish SMEs.
Capitalflow will finance small and medium sized businesses through a variety of financial products including asset finance, invoice finance and asset-based lending, providing SMEs immediate access to finance for working capital management, day-to-day expenses, sales and business growth.
Established by former Close Brothers Managing Director, Harry Parkinson and former Bibby Financial Services Managing Director, Ronan Horgan, Capitalflow was founded in November 2015 and began operating in April 2016. The company is headquartered in Dublin with offices in Belfast.
The announcement of €300 million is part of the company’s launch and growth strategy in the Irish market which aims to increase its workforce and market share significantly in the next two years. With bespoke financial products designed to meet the needs of its clients, the company has plans to expand its product offering in 2017.
Backed by London-based private equity firm Pollen Street Capital, Capitalflow has provided €50 million in the past six months to over 230 Irish SMEs.
Announcing detail of the company’s growth plans today, Mr Harry Parkinson, Chief Executive Officer of Capitalflow said that the company will bring further competition to the Irish market which is increasingly less reliant on the traditional banking sector.
"In the past, Irish businesses were very dependent on traditional banks for finance but this has changed as new and more flexible options are introduced on the market. With a growing economy and a pro-business environment, the need to provide support and financial options to the SME sector has never been more relevant.
"There remains some volatility and an uncertainty in the Irish market, particularly as Brexit negotiations are underway which places added pressure to ensure a fully supported and buoyant domestic market. Businesses are looking for certainty and having access to finance gives them that certainty they need to invest in their businesses for the future. Today’s announcement is a clear indication of our ambition and plans for our Ireland business," he said.
According to the CSO, small and medium enterprises account for 99.7 per cent of all active business enterprises in the Republic.
Commenting on the announcement, Mr Ronan Horgan, Managing Director of Capitalflow said, "Providing €50million funding to over 230 Irish businesses in just six months is a clear indication of the need and demand for finance among Irish SMEs. We see particular demand across the construction, transport, manufacturing and tourism sectors which are key industries for employment and business growth in this country.
"Our funding options deliver flexible and immediate funding options to businesses and we are different to traditional forms of finance. We process funding applications and make a decision on financing in days, rather than leaving SMEs waiting weeks for a response. We provide SMEs instant access to finance," said Mr Horgan.
With a team of experienced financial professionals, Capitalflow is supporting SMEs across key growth areas of the Irish economy including construction, manufacturing, recruitment and distribution sectors, providing finance for those seeking to invest in assets or to release cash to their business.