‘Many Businesses Use Unsustainable Funding Options’
Bibby Financial Services started operating in Ireland in 2006 and established an office in Cork in 2019 to facilitate an increase in business across the Munster region. The operation, led by Stephen McCarthy, head of business development, offers bespoke financial assistance and a range of products tailored to businesses of all sizes.
McCarthy says Bibby has experienced increased business due to the exit of Ulster Bank from the banking landscape. “We found that many businesses used the opportunity to review the wide range of financial options available to them to fund their business,” he says.
“Unfortunately, many businesses use totally unsustainable funding options to keep their business going. In fact, our research shows that a one third of SMEs in Munster are currently using credit cards and 29% are relying on overdrafts to facilitate their daily cashflow requirements.”
BFS works with businesses in sectors such as manufacturing, engineering, wholesale (particularly food and beverage), transport and logistics, healthcare, construction subcontractors, and a range of business services. The company deals with clients whose annual turnover ranges from €300,000 to €50m. Existing facility sizes for these customers range from €100,000 up to €10m.
According to McCarthy: “We have seen demand for working capital and cashflow increase across the region in the last 12
months, particularly as government supports began to wind down. The economy is doing extremely well, so the need for SMEs to find a suitable funding partner to assist with cashflow requirements remains a constant. Assisting with M&A and MBO transactions has also been an active area for us.”
Confidential Invoice Finance has been the product most in demand at Bibby, McCarthy adds. The finance house has partnered with Permanent TSB to offer the bank’s customers invoice finance services. “Our longterm relationship with the Strategic Banking
Corporation of Ireland offers discounted invoice finance services to qualifying Irish businesses and this has also assisted a range of businesses in the Munster region.
“Unlike a loan or overdraft, the invoice finance revolving credit option means that once your invoices are paid, you can just continue the cycle — upload your invoices, draw down, use the funds and simply repeat.”
Bibby Financial Services also offers a Bad Debt Protection product and recently partnered with Coface to provide trade credit insurance for its customers.