Galway bakery cuts investors in for slice of the action

A well-known Co Galway bakery has turned away from the traditional way of borrowing money to fund its refurbishment – and locals can get a slice of the action.

Walsh’s Bakery and Café on Market Street in Clifden will be borrowing €50,000 of the public’s dough through an increasingly-popular crowd lending system called P2P (peer-to-peer) –  where they will be matched with lenders from a pool of investors, ordinary members of the public.

The project is already around 70% funded with more than 170 people putting bids in towards the loan ahead of its deadline next Tuesday.

The P2P lending industry claims to offer lower interest rates than traditional financial institutions, more ‘relaxed’ rules and approval within a matter of hours.

The bakery was set up by Tom Walsh in 1953 and is now under the stewardship of his son, Cathal, employing 34 people.

Cathal is planning to enhance the facilities – cosmetic improvements and upgrading equipment – with the icing on the cake being the opportunity to upskill staff.

The €50,000 loan required is being raised by P2P lender Linked Finance, which has already raised more than €500,000 for around 20 Galway businesses.

Cathal said: “The business has grown so much over the years, in the height of the season we now employ 34 people in a variety of jobs, from bakers and cafe staff, to delivery drivers.

“We still run on the same business principles that my father instilled in all of his children; respect your staff, care for your customers and always work hard. This is why I think we have been a success.”

As well as establishing a strong customer base of locals and tourists, the bakery also supplies other local businesses, including SuperValu.

Cathal is hopeful that P2P lending with be a recipe for success in the expansion of the business.

See full story in this week’s Connacht Tribune.