BFS pledges SME cash

More loans are expected to flow to small businesses after Bibby Financial Services (BFS) has pledged to increase its funding for UK small and medium-sized enterprises (SMEs) by more than £290m after refinancing with a banking club.

The invoice finance provider has agreed a new deal with Barclays Bank, Bank Of America Merrill Lynch, HSBC Bank and Lloyds Bank.

BFS chief executive David Postings said, ‘This is a hugely positive announcement for UK PLC and the wider economy. Increasing our funding support for SMEs will create jobs and growth for businesses across the country.’

To date, BFS has advanced about £480m to UK SMEs and now has now committed funds of £774m to the sector. In order to access greater funding, the business undertook a process of securitisation, which involved having its debtor-book rated.

‘Securitisation is a huge milestone for Bibby Financial Services and one which will see us compete with banks and other independent funders on a much greater scale and level playing field,’ added David.

‘This is just the start of our growth plan as we seek to expand our support to SMEs over the coming years,’ he said.