Strong uptake last year led to 70% increase in funds in 2015
Irish SMEs availed of €41 million in invoice finance provided by Bibby Financial Services Ireland last year, the company announced today.
Bibby, which provides alternative sources of finance, particularly invoice finance, noted especially strong demand from recruitment, export, distribution, haulage and manufacturing companies.
The company’s invoice financing model 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 in arrears.
The news comes following Bibby’s recent announcement to commit an additional €70 million in invoice finance to Irish businesses in 2015, a 70% increase on last year.
Newly published statistics from the Asset Based Finance Association (ABFA) show that Irish companies using invoice finance grew their turnover to €25.5bn in 2014 – this is an increase of 20% on 2013. Nearly 80% of companies using invoice finance register an annual turnover of up to €5million.
Ronan Horgan, Managing Director of Bibby Financial Services Ireland, said the uptake of invoice finance in 2014 demonstrated “a clear desire for alternative sources of finance and a markedly improved outlook for the Irish economy.”
“Since the economic bust, small and medium sized businesses in Ireland have struggled to find funding from traditional money-lending institutions such as banks. Bibby offers a practical, specialised alternative that solves this problem.
“As the national economy returns to prosperity, we’re seeing a greater demand from an increasing number of business owners for access to invoice finance. This was particularly evident in 2014, and that’s why in 2015, we’ve increased the funds available to SMEs.
“Invoice finance allows businesses to cover their overheads and focus on business expansion at home and abroad, which leads to the creation of new jobs,” Mr Horgan said.
Bibby Financial Services Ireland is part of the Bibby Line Group, the world’s largest independent invoice finance company that provides over €1 billion funding to over 7,000 SMEs globally every year.
Photograph: Ronan Horgan BFSI