Flender Ireland, a provider of finance to small businesses, is planning to expand its funding base following a restructuring of parental and revenue debt, reports The Irish Times.
Eoghan Boyle, the incoming chief executive, has confirmed the completion of a Small Company Administrative Rescue Process (Scarp) and subsequent debt restructuring at its UK parent company, NKK Finance.
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The Scarp, a rescue process for small companies, resulted in debt write-offs by NKK Finance, which had loaned €3.5m ($3.7m) to Flender, and the Irish Revenue Commissioners, owed €700,000.
The restructuring also affected holders of €1.7m of convertible loan notes and Enterprise Ireland, which had €350,000 invested in NKK’s preference shares.
The company, since its inception in 2016, has facilitated loans amounting to nearly €68m.
Flender, initially a peer-to-peer lender, now relies on a European institutional investor for funding, details of which were not revealed by Boyle.
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By GlobalDataIt remains an intermediary, earning a 5% commission on loans it facilitates, with the loans staying on the books of the actual lender.
The European investor has been “very supportive” during Flender’s restructuring phase, Boyle said.
Since filing for Scarp in December 2023, Flender has issued nearly €8m in loans to SMEs.
“We are in talks with potential new funders and are hoping to close an initial new deal as soon as the end of this year,” he said.
The company, traditionally offering term loans, is also testing a revenue-based financing product.
“We are also looking at other types of innovative products to add over time,” Boyle added.
Gerry Jennings, a financier and former banker, is currently the sole director of Flender following several executive changes.
Former Bank of Ireland executive Bryan Carroll, who founded a digital lender in Vietnam in 2019, is set to become the chairman.
Flender is also enhancing its board with the addition of John Burke and Norbert Bruell as non-executive directors, aiming to drive recovery and growth.
