BFSI well positioned for further growth in 2014
27 January, 2014
Bibby announces €60 million SME fund for 2014
- Credit application decisions guaranteed within five-days
- Two senior executive appointments announced
- Growth in invoice financing as businesses ‘give-up’ on banks
- Bibby-supported companies’ employ 4,799 people in Ireland
Bibby Financial Services, the world’s largest independent invoice finance company that provides €1billion funding to over 7,000 SMEs globally, 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 €60 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 50% 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.
To support the company’s growth plan in Ireland, BFSI has made two senior executive appointments.
Mr Graham Byrne has been promoted to Chief Commercial Officer of Bibby Financial Services Europe. Mr Byrne, former managing director of BFSI, established the company here in 2005 and has driven the growth of BFSI in Ireland over the past eight years.
In his new role, Mr Byrne will be responsible for business strategy, product development and customer relations across eight European offices.
Former Senior Manager at Certus and Divisional Director with Bank of Scotland Ireland, Mr Ronan Horgan has been appointed Managing Director of the company, taking up the position earlier this month.
Ronan, who took a leading role in developing the company’s three-year growth plan, will be responsible for overseeing and managing the continued profitable growth of the company in Ireland.
Commenting on the announcement of this fund and the growth plans of the company, newly appointed Managing Director, Ronan Horgan said that the fund represents an ‘important alternative source of finance for Irish SMEs who may struggle to meet day-to-day costs but who have a sound and viable business.
‘In challenging trading conditions, businesses today can find it difficult to raise finance to operate their businesses and have, in effect, ‘given up’ on traditional banks.
‘We urge SME’s to think outside the bank when it comes to financing their business,’ said Mr Horgan.
BFSI works with clients, both new start-ups and established businesses, across all business sectors and supports 4,799 jobs in the Irish economy.
Commenting, Graham Byrne, Chief Commercial Officer, Bibby Financial Services Europe said that the ‘three-year growth plan is a strong signal of the company’s commitment to Ireland’.
‘Ireland is an important part of our global success. With a strong and growing export market in Ireland and positive developments abroad, there are significant opportunities for indigenous SMEs to get ahead and they will require strong financial backing from alternative sources of finance to scale,’ concluded Mr Byrne.
BFSI is part of the Bibby Group, a global leader in invoice financing with 47 offices across Europe, the US, Middle East and Asia.
Further information: Sarah Regan, pr360, Phone: 01 637 1777
BFSI is part of the Bibby Line Group, the largest independent provider of cash flow finance globally which provides €1billion funding to over 7,000 SMEs across 47 international offices in 15 countries. Bibby Line Group employs 6,000 people globally. BFSI provides a wide range of flexible funding solutions that help Irish businesses grow and expand. The company employs 30 people in Ireland and is based in Sandyford, Dublin.