Permanent TSB and Bibby Financial Services Ireland unveil exclusive partnership

Updated: 16 February 2021
  • Invoice Finance facility will enhance range of options available to new and existing PTSB customers with funding for cashflow, M&A / MBO activity or corporate restructuring
  • Exclusive partnership between leading retail and SME bank and a specialist lender is set to transform the Irish financial services landscape

Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to Irish SMEs, and Permanent TSB (PTSB) have joined forces in an exclusive partnership to offer PTSB customers an enhanced range of funding solutions designed to improve cash flow and fund their growth ambitions. The new relationship between one of Ireland’s leading retail and SME banks and a specialist lender is one of the first of its kind in Ireland and is set to transform the Irish financial services landscape.

The strategic partnership will involve Bibby Financial Services Ireland offering Invoice Finance services to PTSB customers. Invoice Finance offers businesses access to cashflow outstanding from their unpaid invoices, helping them to access income they have already earned but not yet received. This offers businesses the option of using their own funds to improve day to day or seasonal cashflow fluctuations or finance bigger growth plans.

Once a business issues an invoice to a customer, that business can receive up to a maximum of 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. As well as being an ideal funding solution for companies that have customers on longer payment terms, or who pay late, Invoice Finance also offers the opportunity to potentially improve profit by paying suppliers early and taking advantage of substantial discounts.

As well as facilitating cashflow, Invoice Finance can also be utilised by PTSB customers to fund a range of growth or restructuring scenarios such as:

  • Fund a merger or acquisition
  • Refinance or restructure a business
  • Complete a management buy-out or buy-in
  • Finance growth ambitions or expansion
  • Fund Research and Development
  • Invest in infrastructure
  • Secure new contracts
  • Stabilise the business during turnaround

BFSI is part of Bibby Financial Services, a leading global financial services partner to SMEs, operating in more than 40 locations across Europe and Asia. Leveraging BFS’s international network, PTSB customers will have access to specialist export finance.

Mags Brennan, Head of Business Banking at Permanent TSB, said: “We have big ambitions to grow our SME lending business and this innovative partnership will support that and bring more benefits to both new and existing SME customers of Permanent TSB.

“This builds on the €50m low-cost lending partnership with the Strategic Banking Corporation of Ireland that we announced recently and will provide even greater choice and flexibility to SME customers who need tailored funding and cashflow solutions to help their business grow and thrive. We look forward to announcing further innovations for SMEs in the coming months.”

Welcoming the announcement, Mark O’Rourke, Managing Director, Bibby Financial Services Ireland, said: “We’re delighted that PTSB has chosen to partner with Bibby Financial Services Ireland for this exclusive service. With our extensive local and global expertise, we are the best positioned specialist lender operating in the Irish marketplace to offer this service to PTSB customers.

“Figures from the Irish Asset and Invoice Finance Association show that, on average, Irish firms are currently waiting 64.1 days before being paid by their debtors. This is an increase of just under ten days in 12 months, meaning a significant impact on cashflow. Invoice Finance offers businesses the perfect funding solution as it helps bridge the gap between raising invoices and getting paid.

“While 2021 will undoubtedly bring significant challenges for the Irish economy, particularly the small and medium-sized businesses that form its backbone, it will also offer opportunities for those businesses that use a changed landscape as a chance to innovate. We have already seen an increase in merger and acquisitions activity, as well as management buy-outs and buy-ins and we expect to see this continue this year. Significantly, invoice finance is increasingly key to financing these deals in our transformed economic landscape.”