Bibby Expands Into Far North Queensland
Bibby Expands Into Far North Queensland
Sydney, September 19, 2013 – Leading global debtor finance specialist, Bibby Financial Services, today announced its expansion into Far North Queensland. The expansion follows rapid growth for Bibby in Australia.
Bibby Financial Services offers debtor finance, also known as factoring, to small and medium enterprises (SMEs) across Australia.
According to the latest statistics from the Debtor and Invoice Finance Association (DIFA), total debtor finance turnover in the June 2013 quarter was $15.4 billion, up 5.7% from the March 2013 quarter. In Queensland, debtor finance turnover for the June 2013 quarter was $2.3 billion - an increase of 4.4% from the March 2013 quarter.
Gary Green, National Sales Director, Bibby Financial Services said: “The launch into the Townsville region is part of our Australian expansion strategy and demonstrates our commitment to providing regional businesses with adequate funding. We have built a strong and reputable team in Australia to take advantage of opportunities in the debtor finance market and supporting small business.
“Australia is one of the fastest growing markets globally for debtor finance, growing at an average rate of 20% per annum since 2002. However the industry still lags behind the UK, where debtor finance represents 15% of GDP, compared to 5% of GDP in Australia. In the coming years, we expect debtor finance to become a more mainstream funding solution with a larger share of GDP. Bibby certainly plans to tap into this growth and offer SMEs the best level of support we can provide,” Mr Green said.
Amanda Bird, Business Development Manager, Bibby Financial Services joined the company in April this year and is responsible for driving new business in Queensland and will focus on the Far North Queensland region.
Ms Bird commented, “Far North Queensland is a region of great potential for Bibby given the concentration of SMEs and limited access to mainstream funding sources. I look forward to working closely with businesses in this region and discussing how Bibby can support their business goals.
“In this area, there are a number of labour hire companies supplying workers to the mining industry and debtor finance is an ideal lending solution for these businesses,” she said.
According to DIFA statistics the labour hire sector was the biggest user of debtor finance in the June 2013 quarter representing 34% of factoring turnover, followed by the wholesale trade sector (16%), transport & storage sector (12%) and manufacturing sector (12%). Agriculture and mining represented 5% of all factoring turnover for the June 2013 sector.
“Bibby releases funding on a daily basis allowing labour hire businesses to manage cash flow more easily without having to wait. Businesses can take advantage of unexpected opportunities and pay their hire staff on time,” Ms Bird said.
According to Bird, restricted bank lending continues to impact small businesses in Far North Queensland, which is hindering their ability to grow in a more optimistic business environment of lower interest rates and confidence after the election.
“Businesses are frustrated because they don’t have the support of traditional lenders that they have been used to in the past. Banks have certainly become more conservative over the past five years and Bibby is prepared to step in when businesses have failed to get support from the banks.
“The huge advantage of debtor finance is that it provides a business with an immediate and on going cash supply which is linked to the level of sales and doesn’t require real estate as security. For this reason, it is a great tool for growing businesses in a more optimistic business environment,” Ms Bird said.
Bibby Financial Services will be hosting an exclusive event at The Brewery in Townsville this evening to celebrate its arrival into Far North Queensland to support SMEs and their advisers.