The Strategic Banking Corporation of Ireland (SBCI) and FEXCO Asset Finance today announced a new funding package of €70 million that will allow Irish SMEs to borrow at a lower cost for specialist equipment and vehicles. FEXCO Asset Finance has become the SBCI’s 8th lending partner.
FEXCO’s product offering currently covers 68 different asset types including:
• fixed equipment,
• plant and machinery,
• production lines, and
• more traditional leasing of vehicles, cars and vans.
SMEs will now be able to access this finance from FEXCO with an SBCI discount of 1.57%.
SBCI CEO Nick Ashmore said: “SBCI’s lending programme continues to gather momentum, supporting business growth and employment in the Irish SME sector. We are pleased to close out 2016 by partnering with FEXCO whose product offering will cover, in particular, asset types which have traditionally been more difficult for businesses to finance such as fixed equipment and plant machinery.
“It has been a busy and exciting year for SBCI with the addition of four new lenders. Looking ahead to 2017, we will continue to play our part in supporting growth in Irish businesses through the management of the Credit Guarantee Scheme, launching the new Agri Cash Flow Support loan for farmers, and driving awareness of our lower cost finance.”
Minister for Finance, Michael Noonan TD said: “FEXCO’s partnership with the SBCI shows how Government can work together with domestic business to support Irish SMEs. Today’s announcement is another example of the commitment in the Programme for a Partnership Government to increase the availability of credit for SMEs and the provision of supplementary sources of finance.”
Minister of State for Financial Services, Eoghan Murphy TD said: “FEXCO is a great example of how our indigenous financial services sector can expand both at home and through export of its services. From their beginnings in Kilorglin, Co. Kerry FEXCO now offer their services in 29 countries. Such diversification into new markets is the way forward for our sector. Our Irish Financial Services industry has a lot to offer and the Government through its IFS2020 strategy will continue to support growth in employment over the coming years.”
Mike O’Halloran,CEO FEXCO Asset Finance said: ‘We’re delighted to announce this collaboration with SBCI today enabling us to facilitate greater access to finance for Irish businesses at a discounted rate.
“The €70 million fund will be available to SMEs for the finance of business assets which can support growth while facilitating improved cash flow management. FEXCO Asset Finance has been active in the SME marketplace in Ireland for the past 23 years and we pride ourselves on being able to provide excellent customer service and a quick turnaround on loan applications”
During 2016, SBCI has provided funding to four new lenders, Ulster Bank, First Citizen, Bibby Financial Services and FEXCO and in July announced it had facilitated more than 8,600 loans since being established in early 2015.
SBCI lenders offer lower cost loans across a range of products including working capital, investment, agri-finance, invoice finance, fleet finance and leasing. On average, SMEs receive a discount of 1.5% on market rates for these loans.