New initial €30m fund unveiled by BFS Ireland to assist Irish SMEs affected by departure of Ulster Bank and KBC

Updated: 2 June 2022
  • New fund offers innovative invoice finance solutions to Irish SMEs looking for a new funding home in the wake of Ulster Bank and KBC’s departure from Ireland
  • Four out of ten SMEs say they will require additional funding in 2022, while one quarter say they now need cashflow support more than ever before

A new funding campaign worth an initial €30m aimed at supporting Irish SMEs affected by the departure of Ulster Bank and KBC from the Irish market has been unveiled by Bibby Financial Services Ireland, a leading provider of financial support to Irish SMEs.

With an all-island presence, Bibby Financial Services Ireland will use the fund to offer innovative invoice finance solutions to both large and smaller businesses in the SME space nationwide to keep each and every business running as smoothly as possible as they navigate the exit process from Ulster Bank and KBC.

When Ulster Bank and KBC close their doors in the Republic of Ireland, thousands of businesses will feel the impact, with many SMEs not matching the criteria of traditional banks. This new funding campaign is an opportunity for those businesses to consider alternative funding options and the myriad of benefits they offer.

With a host of cash flow concerns facing Irish businesses at the moment such as supply chain and energy costs issues, the aim of the €30m Bibby Financial Services Ireland fund is to:

  • Offer businesses speed and access when it comes to switching – making the process as easy and pain free as possible
  • Look beyond the numbers to really understand each and every business, identify their exact requirements and provide a tailored invoice finance solution
  • Engage in strong personal relationship management to provide businesses with what they need – when they need it

Recent research from Bibby Financial Services Ireland shows that almost four out of ten (38%) SMEs say they will require additional funding in 2022, while nearly a quarter of SMEs (22%) say they now need cashflow support more than ever before.

SME’s have told Bibby Financial Services Ireland that this funding will be utilised to ensure they can deal with inflation, overcome supply chain disruptions, ramp up recruitment to fulfil demand, and invest. As a result, considering solutions from all sources, including the private sector, should be considered by business owners.

Since last year, Bibby Financial Services Ireland has partnered with Permanent TSB to offer their customers an enhanced range of funding solutions designed to improve cash flow and fund their growth ambitions. This 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 offers businesses a significant opportunity to explore their funding options.

Mark O’Rourke, Managing Director of Bibby Financial Services Ireland, says: “If Ulster Bank’s decision to leave has left you in an uncertain position, we’re here to listen and help. At Bibby Financial Services we care about building lasting relationships with all of our customers. We pride ourselves on building strong personal relationships and this campaign is centred around understanding the individual needs of those looking for a new funding home. It’s not only our lending appetite that’s different to the banks, our approach is too. We appreciate that every business is unique. So, we take the time to understand our customers’ story, and we listen to the business need. Then we find the facility to match.”

“Unlike a loan or overdraft, Invoice Finance does not involve ongoing monthly repayments. This revolving credit option means that once your invoices are paid, you can just continue the cycle – upload your invoices, draw down, use the funds and simply repeat. In addition to assisting with cashflow, it’s worth noting that Invoice Finance can also be utilised to fund a range of other growth scenarios such as investing in infrastructure or equipment, funding Research and Development, financing an expansion, Mergers & Acquisition activity or simply stabilising a business during turnaround.”