Global invoice finance company, Bibby Financial Services, has launched a new €60 million fund for small and medium-sized Irish businesses.
The fund is aimed at Irish SMEs that need to generate cash flow to sustain or grow their businesses.
Bibby Financial Services Ireland (BFSI) supports SMEs by giving them access to cash tied up in invoices through invoice financing.
“Like all SMEs, our clients sell goods and services and many under their credit terms have a 60 or 90 day wait for payment. With day-to-day operating costs and staff salaries to pay, this arrangement is sometimes unsustainable for Irish SMEs. BFSI offer an alternative and more flexible source of finance called invoice finance where we buy those invoices, generating cash for the business,” said Ronan Horgan, newly appointed Managing Director of Bibby Financial Services Ireland (BFSI).
According to a recent study by the Department of Finance and Red C research, the main reason SMEs seek credit is to finance working capital requirements while the average time from submission of a credit application to a decision on financing is 21 days.
“We’re different from traditional sources of finance as we process credit applications and make a decision on financing in five days or less,” said Mr Horgan.
The E60 million 2014 fund is part of the company’s three year Irish expansion strategy which aims to double the size of its current workforce and achieve a 50pc increase in the company’s market share over the next three years here.
“The company projects a significant increase in funding to the Irish SME market over the next three years, which reflects the growing demand among Irish SMEs for alternative and more flexible forms of finance to meet costs and take on new orders,” said Mr Horgan.