- Alternative sources of funding a vital resource for SMEs during Covid-19 crisis
- Manufacturing, wholesale and transport sectors account for almost 50% of funding utilised to date
Manufacturing, wholesale and transport SMEs have together utilised almost half (47%) of the total €70m funding made available from the Strategic Banking Corporation of Ireland (SBCI) to Bibby Financial Services Ireland. Businesses operating in these three sectors have together accessed €32m in funding to date, with more financing expected to be provided as SMEs look to maintain cashflow during the Covid-19 crisis.
Since 2016, the SBCI has partnered with Bibby Financial Services Ireland to make €70m in funding available to Irish SMEs. With the major banks currently reporting overwhelming increases in credit applications, this funding can provide an immediate cash injection to SMEs, as well as the ongoing working capital required to grow and expand the business.
Of the funding provided since 2016, 19% has been provided to businesses operating in the manufacturing sector, 18% by wholesalers, and 10% by transport SMEs. A further 9% was utilised by food and beverage businesses, and 8% by those in the recruitment sector. Additional sectors that have drawn on the funding include healthcare, construction subcontractors, and a wide range of small businesses such as facilities management, security, telecoms and media companies.
While Bibby Financial Services Ireland offers a range of different financing options, this particular funding facility offers SMEs a discount of up to 1.5% on existing invoice finance services. Last year Bibby Financial Services Ireland and the SBCI launched a new Trade Finance product, which allows businesses to buy essential equipment during the current crisis before needing to pay for them.
Commenting on the figures, Mark O’Rourke, Managing Director at Bibby Financial Services Ireland, said: “Fast access to finance can make an enormous difference for small and medium-sized businesses looking to manage their cashflow, and it’s more important than ever in these difficult times. With many banks now facing a backlog of applications for working capital loans from SMEs, these figures show how alternative providers can help meet that demand.
“We know that SMEs are facing a range of urgent and pressing challenges, and I’d therefore urge all SMEs to consider the benefits of our range of funding services for their own business.
“As with every aspect of the fight against Covid-19, it is going to take a communal effort to come through this, and we look forward to supporting and championing the wider efforts of the Government, banks and non-bank lenders. We are all in this together.”
Nick Ashmore, CEO at SBCI, said: “We’re committed to providing greater choice to Irish businesses when it comes to their lending options, and are delighted to see such strong demand for this funding. No matter the obstacles faced by a business – be they threats to the supply chain caused by Covid-19, Brexit, or a struggle to drive growth – SBCI funding can be a valuable aid in overcoming them.”
Bibby Financial Services Ireland is a leading provider of financial support and funding solutions to Irish SMEs. The company helps businesses to thrive and grow in domestic and international markets by providing tailored and flexible funding solutions for a range of scenarios including cashflow funding, new equipment purchase, growth and expansion, management buy-ins and buy-outs, refinancing, corporate restructuring and mergers and acquisitions.
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. With a 95% client satisfaction rating, our clients have confidence that we support their business.
Bibby Financial Services Ireland is part of Bibby Financial Services Group, a leading independent financial services partner to over 12,000 businesses worldwide. With 40 years’ experience, the business has a funding capability that exceeds €1 billion and an annual collective client turnover of €11 billion.