Bibby Financial Services has introduced a new trade finance solution as a response to Australian businesses missing out on trade opportunities because of cash flow challenges or bank security requirements.
Bibby Financial Services Australia and New Zealand managing director Mark Cleaver says, “We know that businesses of all sizes struggle to manage cash flow and that a ‘cash crunch’ can be an impediment to growth.”
The funding solution is aimed at SMEs who want to purchase goods for which they have confirmed orders and differs from the typical letter of credit or business loan in that Bibby’s trade finance facility does not require real estate security and the funding is scalable – growing in line with sales and orders.
“The Trade Finance solution is available through brokers; as are all Bibby's finance solutions,” Cleaver told Australian Broker
. “Brokers are remunerated in the form of a commission.”
Cleaver says Australian businesses up their appeal to suppliers by financing trade purchases, pursue larger and higher margin opportunities and maintain a healthy cash flow.
Bibby has been researching cash flow in Australian businesses since 2011 and has seen an increase in business lending since July 2014.
“After several years of below trend growth in business lending, Bibby is seeing an increase in borrowing activity. By utilising trade finance, SMEs can leverage opportunities while mitigating risks, such as the impact of purchases on cash flow, chasing payment, and foreign exchange,” Cleaver said.