Bibby Financial Services Ireland providing facilities of up to €1m as part of Covid-19 Credit Guarantee Scheme

Business services, engineering, logistics and wholesale sectors generate most enquiries about Covid-19 Credit Guarantee Scheme according to Bibby Financial Services Ireland

Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to Irish SMEs, has said the business services sector has generated the most interest in the Covid-19 Credit Guarantee Scheme since its launch.

As well as business services, other sectors that were most active in engaging with Bibby Financial Services Ireland about the scheme were engineering, logistics and wholesale services. The company is also reporting that a significant number of enquiries are from businesses located in the west of Ireland.

Bibby has participated in the Government’s Covid-19 Credit Guarantee Scheme, brought in to support Irish businesses in the wake of the pandemic, since 31st March 2021, to provide individual facilities of up to €1 million for eligible customers.

The Covid-19 Credit Guarantee Scheme was announced by the Irish Government as part of a series of measures to support businesses affected by the Covid-19 pandemic. It offers a partial Government guarantee of 80% to SMEs and other businesses availing of products covered under the scheme.

Businesses can then use the funding both as a form of working capital to cover wages, stock and other overheads, and for further investment in terms of new equipment or machinery. While initially the Scheme was delivered via some of the major banks, participation has now been extended to include non-bank lenders and support a wider range of products, including invoice finance.

Invoice Finance enables SMEs to access cash flow tied up in their outstanding invoices, helping them to access income they have already earned but not yet received. This helps businesses avoid having to take on term debt.

Once a business issues an invoice to a customer, that business can receive up to 90% of the invoice’s value within 24 hours from Bibby Financial Services Ireland. The remaining balance will then be paid to the business minus an agreed fee when the customer has paid their bill.

This makes invoice finance an excellent funding solution for businesses that have customers on longer payment terms, or who often pay late. By releasing that cash quickly, businesses can manage the day-to-day activities and plan for growth with a sustainable cashflow that builds working capital. Unlike with a loan or overdraft, businesses can avoid high fixed repayments and increase their funding in line with business growth. Invoice Finance also offers the opportunity to potentially improve profit by paying suppliers early and taking advantage of substantial discounts.

Mark O’Rourke, Managing Director, Bibby Financial Services Ireland, said: “Ireland’s 250,000 SMEs are the backbone of our economy, and have been severely impacted by the Covid-19 pandemic. We have seen a wide range of businesses applying for the Covid-19 Credit Guarantee Scheme but it is especially interesting to see professional services and engineering among the sectors most interested. We’re delighted to be able to support these businesses through the Covid-19 Credit Guarantee Scheme, helping them manage cashflow challenges, protect jobs and broaden the funding options available to them.

“Having the option to access invoice finance rather than a term loan will mean SMEs don’t necessarily have to take on additional debt, and our ability to quickly deliver funding when it is most needed means we stand ready to assist as many businesses as possible.

The Covid-19 Credit Guarantee Scheme was extended in November 2020 and will now remain open for applications until 31st December 2021 or until fully utilised.

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, 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 global financial services partner operating in 40 locations across 10 countries. With 40 years’ experience, the business has a funding capability that exceeds £1 billion and an annual collective client turnover of £10.1 billion.

Businesses can apply directly for the Covid-19 Credit Guarantee Scheme here.

21 June 2021

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