A new Trade Finance product that allows businesses to buy, receive and sell goods before needing to pay for them has been unveiled by Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to SMEs, in collaboration with the Strategic Banking Corporation of Ireland (SBCI). The new product is ideally suited to Irish SMEs looking to buy goods for resale, either within Ireland or from overseas.
Purchasing goods for resale can offer significant opportunities for growth, but small-to-medium sized businesses will often lack the resources and in-house skills to manage the complexities of buying and selling overseas.
SMEs can also face difficulties accessing sufficient cash for the purchase of goods, or may be unable to obtain or agree credit terms with suppliers. However, the new Trade Finance product guarantees to pay a business’s suppliers once goods are dispatched, and can also provide SMEs with much-needed funding to bridge the gap between paying suppliers and receiving payment from customers.
The Trade Finance product is tailored to support businesses operating in more than 70 different sectors, from clothing, textiles, cosmetics and perfumes through to electronics, furniture and sporting goods. The new facility is being offered in collaboration with the SBCI, which has partnered with Bibby Financial Services Ireland since 2016 to make €70m in funding available to Irish SMEs.
Under the terms of the product, Bibby Financial Services Ireland will make a same-day payment to suppliers, as well as paying duty, VAT and freight costs. The product is funded through the SBCI, and offers SMEs a discount of 2.16% per annum.
Clients will also have access to additional products including the foreign exchange service offering more competitive rates than many of the leading banks, and Bad Debt Protection to protect against a customers’ insolvency or inability to pay.
Pat Breen TD, Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, says: "I am delighted that Bibby Financial Services has today announced a new Trade Finance product developed in collaboration with the Strategic Banking Corporation of Ireland.
While the nature of the UK's departure from the EU still remains to be determined, Brexit continues to represent a significant challenge for businesses in Ireland. This product is designed to provide short-term finance to fund upfront purchase of stock and, with Brexit on the horizon, investment in working capital diversification has never been more important."
Mark O’Rourke, Managing Director at Bibby Financial Services Ireland, says: “Safeguarding cashflow is one of the biggest challenges facing Irish SMEs, but many businesses lack the cash reserves and necessary expertise to meet demand for orders, especially large ones, severely limiting their potential for growth.
“Our new Trade Finance product gives businesses greater security, keeps the supply chain moving, and means they can buy and sell goods confident in the knowledge that they won’t suffer from a shortfall. As the SME specialists, our team of trade finance experts understand and can respond quickly to the needs of business owners, allowing them to accept new order and fulfil potential saves.”
Nick Ashmore, CEO at SBCI, says: “The SBCI is delighted to support Bibby Financial Services Ireland as it expands its portfolio to include this exciting new Trade Finance product. Availability of and access to sufficient working capital is critical for the success of any business and this product will assist Irish businesses seeking to expand and grow in a safe controlled way.”
Bibby Financial Services Ireland’s funding portfolio includes confidential invoice, trade and export finance, foreign exchange services, bad debt protection 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.