Crowd Funding Comes to Kilkenny

KILKENNY’S artisan candle makers, Moth-to-a- Flame is the latest small business to turn to people power to access credit during difficult financial times.

Crowd Funding is a new initiative in Ireland where businesses can apply to have their loans fully funded by members of the public through a new online company called Linked Finance.

Founder of Moth to a Flame, Larry Kinsella, who is one of just a handful of artisan candle makers in the country, said he decided to turn to Crowd Funding for his business loan to take advantage of the low interest rates.

Larry opened the business in 1999 and handcrafts his candles at a workshop at the rear of his premises at Bennettsbridge, Co. Kilkenny.

The candle maker, has earned a reputation for distinctive and stylish handmade Irish candles and his ranges are sold in gift and craft shops throughout Ireland.

He has applied for a loan of €8000 through Linked Finance to give the outside of the premises a makeover, provide more parking spaces and revamp his workshop.

“I was excited by the idea of crowd funding as I thought it was an interesting and unique concept, already the loan has been 50pc funded and it is only up a few days,” he said.

Since it was commenced in March 2013 more than half a million euro has been raised by Linked Finance and is ready to be loaned out to businesses seeking credit now.

Peter O’Mahony who runs the Laughter Lounge in Dublin set up the company with the backing of prominent businessmen Kingsley Aikens, Bobby Kerr and Feargal Quinn.

Peter O’Mahony said: “This concept is new to Ireland, but is a successful method for SME funding in the UK. It is a simple way to inject cash into supporting small to medium sized enterprises, bypassing the often restrictive and cumbersome banking system.

“At its heart is the community and based on feedback we have already received from the business community in Kilkenny, we know that Larry’s project will be the first of many Kilkenny businesses that will benefit, creating jobs and expanding their businesses.”

Larry said: “I decided to go down this route of ‘crowd funding’ with Linked Finance as I like the whole community aspect of the concept and I thought it would be a novel way to connect with my customers prospects.”

Peter concluded: “The aim of Linked Finance is not only to provide investment, but to build strong business relationships, as a company’s lenders become its customers, ambassadors and salespeople.”

For more information on becoming a borrower or lender visit linkedfinance.com.