Bibby approves €52m in invoice financing to Irish SMEs as demand for credit grows

Irish SMEs availed of €52m in invoice finance provided by Bibby Financial Services Ireland last year, the company announced today...

This is an increase of almost 28% on the €41m credit facility approved by Bibby in 2014.

Invoice finance facilities approved by Bibby to Irish SMEs in 2015 varied from €50,000 to €5,000,000.

The news comes as Bibby announces the appointment of a new managing director for Ireland, Bernard O’Hare.

From Dublin, Mr O’Hare is a experienced financial professional, with more than 35 years’ leadership experience in financial services, and particular expertise in invoice financing.

Mr O’Hare joins Bibby from Certus, where he held the role of divisional director for four years. His previous experience also includes divisional director at Bank of Scotland Ireland/ICC Bank, where Mr O’Hare spent 12 years.

Commenting on his new role, Bernard O’Hare said: “As the economy recovers, there is a clear appetite among Irish SMEs to scale and grow their businesses. While the demand for credit among SMEs remains high, immediate access to working capital through invoice finance is enabling businesses to cover their overheads which in turn is allowing SMEs to focus on growth and expansion opportunities.

“Last year, Bibby approved €52 million in invoice finance to Irish SMEs and, considering the growing demand for non-bank finance in the SME sector, we expect to see this figure increase significantly in 2016.”

According to the recent Red C Credit Demand Survey (Nov 2015), SMEs are reporting improved trading conditions, but they remain cautious in relation to debt. Furthermore, while SMEs believe that banks are more willing to provide credit than before, there is still a perception that banks are only lending to a small number of SMEs.

This sentiment is further supported by new data published by the Central Bank (Jan 2016), which indicated that access to finance is still considered a major concern for Irish SMEs.

Bibby’s invoice financing model, however, supports businesses by giving them access to cash tied up in invoices. The facility is available to any business that sells goods or services and invoices customers on credit terms.

Bibby guarantees to process credit applications and make a decision on financing in five working days or fewer.

Welcoming Mr O’Hare’s appointment, Bibby’s International CEO Steven Box said: “It is our ambition to grow our European operation and Ireland is key to our growth ambitions. Bernard joins our senior management team with considerable experience that supports our global strategy. I look forward to working with him as we grow the Irish business and continue to support the Irish SME sector.”

Bibby Financial Services Ireland is part of the Bibby Line Group, the world’s largest independent invoice finance company that provides over €2.2 billion funding to over 9,500 SMEs globally every year.

The company currently employs 30 people at its office in Sandyford, Dublin.

Article Published: 09/02/2016