Bibby expands into South Australia to offer debtor finance
Bibby Financial Service, one of the world’s largest independent providers of debtor finance, has opened an office in South Australia, appointing Greg Hardiman as State Manager Business Development to oversee growth of the business in the state.
Mr Charlwood, Managing Director, Bibby Financial Services Australia said, “I am delighted to appoint Greg to help expand our footprint in South Australia. Greg has an enviable understanding of the agribusiness, transport, banking and finance industries and will be a tremendous addition to our business in Australia,” he said
Before joining Bibby Financial Services, Mr Hardiman spent several years working for major banks in commercial finance specialising in cash flow, trade finance and foreign exchange for major clients. Prior to this he worked for Elders in regional Australia and held various positions overseas including in Santiago, Chile, where he worked for a major South American shipping and logistics conglomerate.
In response to his appointment, Greg Hardiman said: “This is an exciting time for the debtor finance industry with businesses realising how non-traditional funding can strengthen their cash flow, without requiring property as loan collateral.”
Debtor finance, also referred to as invoice financing, enables a business to convert up to 80 per cent of the value of its invoices into cash almost immediately. It is designed to improve business cash flow and support business growth by releasing cash tied up in unpaid invoices. Close to 5,400 Australian businesses used debtor finance facilities in 2010.
The debtor finance industry grew steadily in South Australia and the Northern Territory last year with turnover increasing by AU$12.5 million, or 50 per cent, in the 12 months to September 2010. Bibby Financial Services expects this rate of growth to continue, as awareness of the benefits of debtor finance in South Australia increases.
According to Mr Hardiman South Australian businesses, particularly transporters, wholesalers, manufacturers and suppliers to agriculture and mining companies, are using debtor financing as an intelligent solution which doesn’t require real estate, grows in line with sales levels and doesn’t impact on the balance sheet. Accountants and commercial brokers also understand the benefits of debtor finance to assist their client’s cash flow management.
“The dust may be settling from the GFC, however the key discipline of improving cash flow has become an enduring lesson for many South Australian companies. After all you can survive a number of years without profit but you will be lucky to last six months with a negative cash flow,” Mr Hardiman said.
“Traditionally many companies have relied on banks for credit and this source is inevitably becoming more expensive and harder to access, that’s why debtor finance from a quality non-bank lender is an increasingly viable option for smart businesses, both growing and established,” he said
Banks tightening credit during the GFC, lengthening debtor payment times and the Australian Tax Office (ATO) cracking down on outstanding debts, were key factors encouraging businesses to use debtor finance in 2010. Bibby Financial Services expects these factors and the increasing knowledge of invoice financing by business owners and finance professionals, to continue to encourage businesses to consider debtor finance in 2011.
Bibby Financial Services achieved it highest number of clients in 2010, reaching 5,000 globally and gaining almost 1,943 new clients in 2010. The Australian business grew 20% in 2010 and anticipates further growth of 25% in 2011.
“After a tremendous year last year in other regions across Australia, we look forward to growing the business in South Australia,” Mr Charlwood said.
Posted on 18 March 2011