Bibby bets on relationships for long-term growth
The Strategic Banking Corporation of Ireland (SBCI) has extended €25m to Bibby Financial Services Ireland, that will be available immediately to borrowers.
State-backed SBCI was established to provide access to greater financing choices for SMEs, including alternatives to the main banks.
The head of Bibby's Irish business, Mark O'Rourke, said the finance house had doubled its business between 2008 and 2010, when banks were pulling cash out of the market because it worked closely with borrowers.
"Relationship banking was tested during the recession - that changed everything - it isn't something we can or need to turn back on its in our DNA," he said.
Bibby CEO David Postings added: "Banks were over-lent. We never had that problem so we had an opportunity to grow."
In Ireland, Bibby's core business is invoice discounting - charging businesses a share of their invoice income for cash upfront. There around 2000 "hardcore users" of invoice financing in Ireland, a relatively small pool. Its clients are business-to-business SMEs, including exporters with turnovers typically of at least €300,000 to €500,000. Bibby is also eyeing new business lines here.