€25m invoice finance facility by BFS Ireland and the Strategic Banking Corporation of Ireland

30-May-2018

Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to Irish SMEs, are delighted to announce that the Strategic Banking Corporation of Ireland (SBCI) will be extending their lending facility by an additional €25m. This increase in funds is available immediately and will enable businesses across Ireland to access favourable rates for invoice finance facilities offered by Bibby Financial Services Ireland. 

The SBCI is a state-backed agency created to provide access to greater financing choices for SMEs through a network of finance partners. In 2016, the SBCI partnered with Bibby Financial Services Ireland to make €45m in funding available to Irish businesses. 

The announcement today that the facility is being extended by a further €25m is testament to the strong partnership between the two organisations, as well as the on-going efforts by the SBCI to drive choice in the Irish lending market. 

The funding facility offers SMEs a discount of up to 1.5% on existing invoice finance services offered by Bibby Financial Services Ireland. SMEs can avail of the funding to provide an immediate cash injection, as well as the ongoing working capital required to grow and expand the business. The funding amount is a minimum of €50k, with a maximum amount of €5m and the minimum funding facility is for two years. 

Mark O’Rourke, managing director at Bibby Financial Services Ireland, said: 

“We are delighted that the partnership between Bibby Financial Services Ireland and the SBCI is working so well, which is reflected in this increase of funds made available to us. 

“This additional funding will enable us to support many more Irish businesses, helping them to grow and thrive, at a time where many SMEs are looking to expand both here in Ireland and abroad. 

“Bibby Financial Services Ireland understands that SME’s are the powerhouse of the Irish economy. Ensuring that the funding needs of SMEs are met in Ireland in 2018 will be paramount to the growth of the economy. 

“Many SME owners are unaware of the financing options available to them and tend to opt for traditional unsecured banking products to manage their cash flow – such as an overdraft – when other options might be a better fit for their business.” 

News of the extension of the fund comes in the wake of statistics revealed in the Bibby Financial Services Global Business Monitor, a global survey of SMEs, which shows that 29% of Irish SMEs believe access to finance in Ireland is poor. More than a third (37%) of Irish SME’s also say they use external sources of finance for their businesses. 

Furthermore, almost a third of SMEs (32%) suffered from bad debt over the past 12 months. The average amount written off by each business due to customer non-payment or insolvency stands at €13,780. The average number of days for Irish SMEs to receive payment is 36 days, slightly longer than the international average of 34 days. 

Nick Ashmore, CEO SBCI, said: 

“Today’s announcement clearly demonstrates SBCI’s on-going efforts to deliver greater financing choice to the Irish lending market.  This extension to BFSI’s invoice finance lending facility will see a further €25m in funding being made available to Irish SMEs and considerably strengthens SBCI’s existing partnership with Bibby Financial Services Ireland. With this additional funding, SMEs that need to grow and scale-up their businesses will be able to access lower cost, more flexible and competitive funding solutions.” 

Bibby Financial Services Ireland (BFSI) helps businesses to thrive and grow in domestic and international markets by providing bespoke financial assistance and a wide range of specialist and working capital funding options. 

A member of the Asset Based Finance Association, Bibby Financial Services Ireland’s funding portfolio includes invoice discounting, factoring, export finance, foreign exchange services and specialist funding for a range of sectors. 

Bibby Financial Services Ireland is part of Bibby Financial Services Group, an independent financial services partner to over 10,000 businesses across 14 countries. The Irish operation was established in 2006 and has an expert team of 30 employees based in Sandyford, Dublin.