Bibby Financial Services and Coface have partnered to provide secure funding solutions to Irish small and medium-sized enterprises (SMEs) while also ensuring they are protected from potential bad debts and lost revenue.
Under the collaboration, Bibby Financial Services will offer its Invoice Finance product suite to customers to facilitate cash flow and investment activities. At the same time, Coface will provide credit insurance policies to protect businesses against bad debts and other risks. Coface utilizes its business intelligence database to offer policyholders reliable information on their commercial partners and protect them against non-payment risks. With instant commercial scores, real-time analysis, and supply chain alerts, SMEs can assess the financial health of customers and focus on the most profitable opportunities while minimizing risks and protecting supply chains.
The aim of the alliance is to highlight the benefits of secure funding solutions which can support the cashflow needs of a business, while also ensuring the necessary credit insurance policy is in place to protect a business from bad debts.
About Bibby Financial Services
Bibby Financial Services is a leading provider of financial support and funding solutions to Irish SMEs. With an international network that operates in more than 40 locations across Europe and Asia, Bibby Financial Services offers a suite of Invoice Finance products to customers to facilitate cash flow and investment activities. Invoice Finance provides businesses with access to cash flow outstanding from their unpaid invoices, helping them to access income they have already earned but not yet received.
About Coface
Coface is a global leader in trade credit insurance, offering credit insurance policies to protect businesses against bad debts, unpaid debts, late payments, political risks, pre-shipment risks, and other losses arising from non-payment for goods or services. Coface works with 100,000 clients in 100 countries and provides valuable credit assessments and business information on over 100 million companies worldwide.
How Does the Collaboration Help Irish SMEs:
- Access to Secure Funding Solutions: The collaboration provides Irish SMEs with access to Bibby Financial Services’ Invoice Finance product suite, which allows them to access cashflow outstanding from their unpaid invoices. This helps businesses to improve their cash flow and invest in growth plans without waiting for customers to pay. This can be particularly beneficial for small and medium-sized enterprises that may struggle with cash flow issues.
- Protection against Bad Debts and Lost Revenue: Coface provides credit insurance policies that protect businesses against the risk of unpaid debts, late payments, political risk, pre-shipment risks, and other losses arising from non-payment for goods or services. With access to reliable information on their commercial partners, businesses can assess the financial health of customers and focus on the most profitable opportunities while minimizing risks and protecting supply chains.
- Peace of Mind: The collaboration offers peace of mind to SMEs, financial advisors, and investors that their cash flow is maintained, their bottom line is protected, and their future is safeguarded even in the face of economic uncertainty and geopolitical factors. With credit insurance and invoice financing solutions in place, businesses can focus on growth and expansion without worrying about the risks of non-payment and bad debts.
- Better Rates of Funding: Coupling credit insurance with invoice financing can provide businesses with better rates of funding. This is because credit insurance reduces the risk associated with lending, making it more attractive to lenders. In some cases, credit insurance may be a requirement for obtaining funding.
Why Credit Insurance is Important?
Credit insurance is suitable for any company that provides credit to another company, locally or internationally. By providing protection against non-payment and late payment, credit insurance helps businesses manage their risks and protect their bottom line. Credit insurance also helps businesses access better rates of funding, and in some cases, credit insurance is already a requirement.
Expert Opinions:
Mark O’Rourke, Managing Director, Bibby Financial Services, believes that this ground-breaking service will offer SMEs, financial advisors, and investors peace of mind that they are protected against potential bad debts and lost revenue. Kevin Behan, Head of Commercial with Coface Ireland, highlights that the collaboration provides businesses in Ireland with everything they need to gain access to funding for growth and protection against cash flow issues.
Conclusion:
The partnership between Bibby Financial Services and Coface offers Irish SMEs a comprehensive solution to their funding and credit insurance needs. The combination of secure funding solutions and credit insurance policies provides SMEs with the financial stability they need to grow and succeed, both domestically and internationally.
