Lower Cost Funding to SME customers at 25% rate discount under Ukraine Credit Guarantee Scheme (UCGS)

Capitalflow partnering with the Strategic Banking Corporation of Ireland (SBCI) to offer lower-cost Asset Finance to companies impacted by inflationary pressures.

Scheme is offered by the Department of Enterprise, Trade & Employment, and the Department of Agriculture.

Irish business lender Capitalflow is now partnering  with the SBCI.to offer €75m in lower cost funding to Irish SMEs. The funding is available to qualifying customers who have seen business costs increase by more than 10% since 2020. Under this Ukraine Credit Guarantee Scheme (UCGS), Capitalflow invites applications from SMEs seeking to invest in vehicles and equipment through leases or hire-purchase agreements.


Managing Director AF, Ronan Kelly says, “Irish SMEs have been heavily impacted by cost increases in recent years.  Energy and fuel costs have been particularly affected by the conflict in Ukraine. Coupled with the recent rise in interest rates, these factors have placed huge pressures on businesses. This UCGS scheme allows eligible customers to borrow from Capitalflow at a reduced rate which is fixed over the term of the loan. Backed by the State’s 80% guarantee rateit will be an important initiative for our customers over the next 18 months, to support their investment in a market that continues to grow”.   


The UCGS, operated by the SBCI, is offered by the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine. This places Capitalflow as the first lender in the market to offer this scheme for equipment finance in the form of leases and hire-purchase agreements. The scheme, which offers terms of up to six years, enables Capitalflow to reduce the fixed interest rate to customers by 25% with the benefit of the State’s 80% guarantee.       


Kelly explains the eligibility and application process: “The scheme allows customers to borrow from €10,000 up to €1m from Capitalflow up to a maximum of 15% of a customer’s turnover in recent years, or 50% of their annual energy costs. Customers can check if they are eligible through a simple process available on www.Capitalflow.ie. Eligible customers receive a code from the SBCI which enables Capitalflow to apply the rate discount on their finance application”.   


Capitalflow is a Dublin-based business lender that works with Irish SMEs to provide flexible finance options to scaling companies. Earlier this year Capitalflow announced that it had lent €1bn to Irish businesses since its foundation in 2016.  Acquired in late 2021 by Dutch digital bank, bunq, the Capitalflow team plans to double its lending to Irish customers by 2025.


Kelly added: “With the reduction in competition in the business lending space following the exits of both KBC and Ulster Bank, an emerging SME lender with bank funding is vital for Irish business customers looking for choice and flexibility in the market.” 


June Butler, SBCI CEO commented, “I welcome the addition of Capitalflow as an on-lender for the Ukraine Credit Guarantee Scheme. This further expansion in scheme lenders will help Irish businesses to access the funds they need for working capital or growth in their businesses. In the SBCI, we are committed to supporting Irish businesses with increased access to finance and supporting competition in the Irish credit market. The addition of  Capitalflow to this scheme ensures that there is a greater choice of lending products and providers available in the Irish credit market.”


Having increased its team by over 50% since the pandemic, Capitalflow offers competitive business finance through a team of highly experienced lenders who have a deep understanding of SME’s needs across many sectors including Construction, Transport, Retail, Hospitality, Services, Manufacturing, Agri and Commercial Property Investment.  

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