Irish Times Corporate Finance Report in collaboration with Bibby Financial Services

How SMEs can finance long term growth and manage liquidity pressures, insights from Bibby Financial Services

Irish businesses continue to balance day-to-day liquidity pressures with the need to invest in growth. Rising costs, delayed payments, and tighter credit conditions are testing resilience, while opportunities in M&A, green projects, and expansion remain firmly on the agenda. In fact, our survey says 34% of SMEs are considering M&A in 2025. Having the right funding mix in place is essential to invest in opportunities while protecting cash flow.

The Irish Times Corporate Finance Report 2025 brings together insights from leading financial providers, including Bibby Financial Services, to examine how companies are managing capital, structuring acquisitions, and funding long-term projects.

Key Takeaways:

• Working capital remains under pressure, with late payments increasing and SMEs turning to more flexible funding
• Large-scale investments, from production lines to green energy demand blended finance approaches that protect cash flow
• Acquisitions are rising on the SME agenda, smart funding structures must be in place
• Borrowing remains a cornerstone, overleveraged debt and cash flow strain highlight the growing role of specialist lenders

Managing working capital effectively

By Aoife McGinley – Head of Client Services, Bibby Financial Services

Working capital remains the lifeblood of SMEs. While bank loans and overdrafts are familiar, many find them rigid and slow to access. Alternative routes such as invoice finance, invoice discounting, and supply chain finance are increasingly popular, providing faster, scalable access to liquidity.

Understanding where capital is tied up, late-paying customers, stock cycles, or supplier terms is essential to selecting the right facility. Invoice finance, for example, can release up to 90% of invoice value within 24 hours.

“65% of SMEs report longer invoice settlement times compared with last year.” Bibby SME Confidence Tracker

Read Working capital - oil to keep the business running on The Irish Times.

Funding growth and acquisitions

By Carmel Mulroe – Business Development Manager, Bibby Financial Services

According to the Bibby SME Confidence Tracker, 37% of SMEs are considering external finance to support investment – a clear sign that major projects such as new premises, production lines, or business acquisitions demand a careful balance of funding options.

• Debt finance spreads costs but increases repayment pressure
• Equity finance eases strain but dilutes ownership
• Cash reserves preserve independence but reduce liquidity
• Seller financing & earn-outs lower upfront costs but extend seller involvement
• Flexible finance (invoice finance and asset-based lending) provides scalable funding that grows with the business

Bibby has supported projects across multiple industries:

• €9m asset-based lending facility to execute an MBO for an International Transport Business
• €1.5m invoice finance for a soft drinks' portfolio acquisition
• €4.2m invoice discounting for a recruitment firm restructure in partnership with PTSB

Flexible structures ensure business needs are not only successfully met but also integrated smoothly for long-term stability.

Read the full articles on The Irish Times: Getting the right funding mix and Financing large scale projects

Borrowing and capital: When debt works and when it doesn’t

By Mark O’Rourke – Managing Director, Bibby Financial Services

Borrowing remains a cornerstone of business finance. but only when aligned with cash flow, strategy, and growth potential.

When borrowing makes sense:

• Funding acquisitions or MBOs with clear repayment capacity
• Financing equipment or expansion with predictable returns
• Unlocking cash tied up in debtor's ledger through alternative facilities

When it may be risky:

• Cash flow volatility or early-stage businesses
• Over-leverage leading to repayment strain
• Debt structures mismatched to business cycles

Non-bank lenders now play a growing role, offering faster access, sector expertise, and tailored products such as invoice finance are gaining popularity, particularly with growth-stage businesses.

Read To borrow or not to borrow on on The Irish Times.

From working capital to funding acquisitions, SMEs have more funding options than ever before. The challenge lies in striking the right balance, protecting day-to-day liquidity while investing in future growth.

With its tailored facilities and sector expertise, Bibby Financial Services is helping business leaders do just that.

Want to find out more?

Bibby Financial Services is Ireland’s largest independent SME funder. For nearly 20 years now, we have helped build and grow Irish small and medium enterprises. Recognised as Ireland’s most trusted SME partner, we were named Financial Services Company of the Year at the InBusiness Recognition Awards 2025.

Since 2016, our long-standing partnership with the Strategic Banking Corporation of Ireland has supported hundreds of businesses with low-cost funding. As SBCI’s exclusive invoice finance liquidity partner, the newly announced €30 million facility, brings our total funding through SBCI to €100 million in our support to SMEs.

We also have a strategic partnership with PTSB , bringing invoice finance services to their business customers to support complex business transactions and expansion led funding needs.

To help you find the best solution for your business, our expert team are on hand to make sure you make the right decision. Contact us or call the team direct on (01) 2974911.

^{Please note, this article is an Irish Times Content Studio production. They are extracts from our collaboration with The Irish Times Corporate Finance Report, first published on Thursday, 1 October 2025, and is re-published here with their kind permission.}