Tailored SME funding from Bibby Financial Services
Irish businesses have had to adapt quickly to tougher business conditions in recent years. A culture of late payment and a clampdown on access to credit has forced Irish SME’s to look at alternative means to keep on top of cash flow.
Many who have had to seek alternative finance solutions are discovering what others have known for years: invoice finance can play a key role not only in keeping cash flowing to meet staff wages and supplier payments but can also enable strong growth. That is the experience of Brian Crowley, Group Managing Director, TTM Recruitment, who says that invoice finance with Bibby Financial Services (BFS) has proved to be instrumental in the development of his medical recruitment company.
“Having worked in the UK for numerous years, I was aware of the benefits of invoice finance and the flexibility it offers. At the time penetration of the service was relatively low in Ireland but this has changed in recent years. The mindset is changing, Irish businesses are now realising that there are alternative options out there to help manage company finances. The reliance on old school methods in the form of over-drafts or traditional loans is just not viable anymore.”
Invoice finance with Bibby Financial Services offers flexible and immediate access to cash. While Irish SME’s continue to encounter difficult lending conditions with traditional lenders, invoice finance does not involve lengthy application procedures with decisions to finance being made on the quality of the organisations debtor book and not past performance.
When seeking an invoice finance facility in 2007 Brian turned to Bibby Financial Services:
“The nature of our business dictates huge upfront costs, in addition to this we were encountering lengthier periods of time for customer payments to be received so invoice finance was the best option for us. The relationship has proved invaluable; we have a dedicated credit controller who we consider to be part of our staff freeing up my time to take care of day to day operations. Additionally, Bibby Financial Services has in place a comprehensive online system through which we have access to the most current information on our customer accounts giving us a snapshot of our cash flow situation on a 24 hour basis.”
Graham Byrne, Ireland Spokesman for BFS says that TTM is typical of the growing number of Irish businesses taking advantage of the company’s services, he commented:
“Invoice finance is ideally suited to fast-growing small and medium sized businesses. The principal advantage which attracts businesses is that it can speed up cash flow by providing an immediate and then ongoing source of funding against the value of customer invoices. In addition by offering a comprehensive credit management facility the time lag between issuing an invoice and receiving settlement can be eliminated and so releasing cash tied up in outstanding customer invoices whether raised against domestic or overseas trade. We work closely with our clients like TTM, tailoring our service to meet their individual needs so that they are in a better position to run and grow their business grow.”
TTM Recruitment is now growing at a rate of 30% per quarter, “This growth would simply not have been possible without the support of Bibby Financial Services. The volume of cash we have out in debt at any time means we could not keep growing at the current rate without BFS.” says Brian.
Having the foresight to take the invoice finance route and work with Bibby Financial Services has allowed TTM Recruitment to plan ahead for future growth. Brian advises that Irish SME’s adapt a similar strategy and use all options available to them to fully maximise their business potential.
According to Graham Byrne, “More and more businesses are realising that invoice finance makes sense because it is more responsive and more flexible than bank loans and overdrafts .Bibby Financial Services has a substantial facility of €50m specifically in place to facilitate Irish SME’s through this economically difficult time and beyond.”