Bibby Financial Services launches Trade Finance offering

Sydney, Australia, 22 August 2015:Australian businesses are missing out on trade opportunities because of cash flow challenges or bank security requirements, according to Bibby Financial Services, the largest global specialist provider of debtor finance and invoice discounting services.

Mark Cleaver, Managing Director, Bibby Financial Services Australia and New Zealand, said: “Bibby has been researching cash flow in Australian businesses since 2011. We know that businesses of all sizes struggle to manage cash flow and that a ‘cash crunch’ can be an impediment to growth. Unfortunately, Australian businesses are missing opportunities and it’s a hidden cost to the economy. In response, Bibby has introduced a trade finance solution for SMEs wanting to purchase goods for which they have confirmed orders. With our trade finance solution, businesses can now confidently explore opportunities with local and international suppliers and significantly enhanced their buying power.”

The solution couples a purchase facility to cover the upfront costs of an order with an invoice finance solution, which provides an advance against the customer invoice, part of which liquidates the purchase facility. Unlike the typical letter of credit or business loan, Bibby’s trade finance facility does not require real estate security and the funding is scalable – growing in line with sales and orders.

In its 30 years’ experience financing trade across 16 countries, Bibby has learnt that business owners prefer, where possible, to avoid putting up real estate as security – particularly the family home. “Despite surging house prices in Australia, many business owners are not comfortable with providing real estate to secure business funding. There’s an understandable desire to protect the gains from rising real estate prices,” added Cleaver.

“Bibby’s trade finance solution will benefit importers, for whom the falling Australian dollar is causing margin pressure. Unlocking additional buying power can help support import businesses with the opportunity to secure goods at more favourable exchange rates or where there are discounts available,” added Cleaver.

“By financing trade purchases, Australian businesses can achieve preferential status with suppliers, pursue larger and higher margin opportunities and maintain a healthy cash flow. Trade finance significantly reduces credit risk and the impact of a long buying cycle, particularly common with importers,” said Cleaver.

“Having assisted clients with their upfront purchasing power, Bibby is also able to provide clients with debtor finance, by advancing funding against invoices and providing reliable cash flow in an end-to-end supply chain funding solution for clients.