Fish and chip shop chain Leo Burdock has raised €50,000 in funding through the Irish peer-to-peer lending service LinkedFinance, the most successful loan completed via the platform.
A total of 455 lenders pledged €83,000, or 167 per cent of the €50,000 originally sought to help the chain renovate its Temple Bar premises.
“This facility will enable the business to grow its profitability as well as increase employment. The unbelievable support we’ve received means that this historic Dublin establishment will have a bigger, brighter future,” said Charlie McGrachan from Leo Burdock.
Dublin-based LinkedFinance, which has the backing of Enterprise Ireland and entrepreneurs such as Feargal Quinn, started operating in March 2012. The company said on Wednesday it has hit the €6million milestone in peer-to-peer lending pledges to SMEs.
It plan to help over 5000 SMEs to the tune of €250 million over the next threes years and intends to lend at least €30 million in 2015 alone.
"Companies like Leo Burdocks know that banks, while still a traditional source of business lending, cannot react with the speed of turnaround that companies need in the current marketplace. LinkedFinance bridges that gap and brings the added advantage of creating a community of active investors in Ireland's recovery and the companies we have worked with can certainly attest to this," said LinkedFinance's chief executive Peter O'Mahony.
“As well as speed of loan turnaround, crowd lending provides complete transparency to both the lender and borrower combined with safety via a very rigorous check on the business plan of companies seeking to borrow. The unprecedented support for Leo Burdock’s loan application shows that crowd lending is becoming more popular, and will have a big role to play in economic growth and recovery for SMEs”, he added.
