BFS extends funding capabilities for mid-market firms

Bibby Financial Services has increased its funding for mid-market businesses by agreeing a new three-year, £50m bi-lateral facility with Royal Bank of Scotland Invoice Finance.

The funding, which will be targeted at companies with turnover of £5 million-plus, means Bibby Financial Services has committed funds of £900m to UK SMEs.

The facility will enable the company to support a wider asset-based lending product providing funding against inventory and accounts receivable, as well as allowing the funding of non-UK debt.

David Postings, global chief executive for Bibby Financial Services, said: “Our focus on supporting and funding the UK’s SMEs remains undented.

“We have increased funding for mid-market businesses by 12% over the past year as we have concentrated our expertise on this segment.”

He added that the investment was testament to the commitment it has made to ensure that UK businesses have the funding they need to unlock their businesses’ potential.

Postings said: “Uncertainty over the future direction of the UK economy is hampering businesses’ ability to plan and execute their long-term business plans.
“Through this facility we are able to provide mid-market businesses with security of funding, especially those that trade and incur non-UK debt, therefore helping UK plc to go to the markets where they can exact the most growth.”

This facility sits alongside, and in addition to, the existing UK securitisation facility of £630m which Bibby Financial Services agreed with Barclays Bank PLC – Corporate Banking and Investment Banking, Bank Of America Merrill Lynch, HSBC Bank and Lloyds Bank in November 2015. This facility was recently extended until the end of March 2020.

Bibby Financial Services is a funding partner to more than 7,000 UK SMEs and the country’s largest independent invoice finance specialist. Globally, the company has 40 operations in 13 countries spanning Europe, North America and Asia.