Grid Finance gains EIF backing to support Irish SMEs with working capital

Grid Finance, an Irish SME and micro-enterprise lender, has secured a €1.5m loan from the European Investment Fund’s (EIF) InvestEU Capacity-Building Investment scheme. The 10-year loan will fund expansion of Grid’s product offerings, organisational capacity, and its lending platform.

This marks the first loan to an Irish entity under the scheme, which supports micro-finance and social entrepreneurship in Europe. According to founder Derek Foley Butler, the funding is vital for developing a new Grid product.

Founded in 2013 to address SME credit gaps post-financial crash, Grid Finance transitioned from peer-to-peer lending to a cash-advance model in 2017. The firm primarily offers short-term working capital loans to small businesses, repaid via a portion of card receipts. Its technology-driven approach has facilitated over €100m in total lending as of 2023. Additionally, Grid provides analytics tools for cash flow and credit insights.

The company’s innovative lending solutions have positioned it as a crucial player in supporting the growth of Ireland’s small business ecosystem. By leveraging advanced technology and flexible financing options, Grid Finance continues to empower businesses that drive local economic development.