Business growth in cost-pressured times

Means versus Mindset

Bibby Financial Services (BFS) has been providing funding for over 19 years through economic ups and downs, so it is important to us to stay connected to the needs of small and medium-sized businesses (SMEs).

This is especially important in the current economic climate, where businesses are battling unprecedented cost pressures. In our recent survey of 250 SMEs, 64% said inflation and high costs were their biggest challenges - download the SME Confidence Tracker, Spring Report 2025.

Balancing growth ambitions with cost challenges

The current high-cost environment certainly poses challenges, but they do not need to completely put the brakes on business. As a client told us in a recent discussion, he still has aspirations to grow his business and believes cost-cutting can only take a business so far. In other words, despite all of the external headwinds, SMEs still have ambition to move forward and grow.

Indeed, when we asked survey participants what they saw as the biggest opportunity for their business in the next six months, 50% said “attracting new customers.”  Interestingly 61% in the services sector see customer acquisition as their biggest opportunity. However, businesses need the means to match their mindset.

The financial challenges of growth

As businesses grow, they face a range of financial challenges that require strategic planning and adept management. These include scaling operations, managing cash flow, maintaining customer satisfaction, navigating competitive pressures, and implementing technology upgrades to support their growth. All of which comes at a cost.

Additionally, businesses must deal with the issues of late and non-payment from customers. According to our survey, 65% of respondents reported that customers are taking longer to pay than they were 12 months ago, putting further strain on their cash flow. Moreover, over one-third of businesses have experienced bad debt within the same period.

Strategic Financing: Enabling SMEs to Seize Opportunities

SMEs are amongst the most resilient of businesses, and their ability to capitalise on opportunities will partly depend on their capability to leverage funding effectively. Nearly half of SMEs (48%) said it was more difficult to access finance now than six months ago. We have certainly seen examples of this with new clients, where existing facilities have been withdrawn or where they have struggled to secure funding.

Our survey showed that the primary reasons for seeking external finance are expansion/investment (37%) or funding day-to-day operations (30%), demonstrating the additional helping hand external finance can give businesses to manage cashflow while still investing in growth ambitions.

External funding can provide a boost to cash flow and enable growth during periods of expansion, particularly when pursuing mergers and acquisitions (M&A). M&A is increasingly becoming a key focus for business leaders, with 67% now exploring these opportunities. SMEs are increasingly utilising mergers and acquisitions as a strategic avenue for scalability. This approach not only facilitates market expansion but also enables the acquisition of critical skills and expertise, enhancing overall competitiveness.

Choosing a source of funding that offers the flexibility to support both immediate needs and scalability is crucial now more than before.

Scalable finance solutions for sustainable growth

In today's fast-paced business environment, having access to the right financial solutions is crucial for sustainable growth. Rapid expansion must be carefully managed to ensure that resources such as cash, staff, and production capacity are sufficient to support growth.

Bibby Financial Services, as Ireland’s largest independent provider of financial funding solutions to SMEs for over 19 years, plays a pivotal role in this process. As a people-led business, we take the time to understand your business needs and we facilitate over €1m+ a week in new funding limits to enable a range of funding scenarios, including cash flow/working capital, growth and expansion, management buy-ins and buy-outs, refinancing, corporate restructuring, and mergers and acquisitions.

To facilitate the full spectrum of M&A transactions, our partnership with PTSB offers businesses comprehensive access to a wide range of funding solutions, supporting both immediate and long-term growth strategies.

As your business evolves, our funding solutions evolve with you. We ensure you have the tools needed to expand efficiently and sustainably, empowering you to seize every opportunity for growth.