Bibby seeks more details before committing to revamped lending scheme
25 April 2013
Bibby, one of the main providers of invoice finance to the staffing industry outside the banks, says the company is keen to participate in the expanded and modified Funding for Lending Scheme.
Thu, 25 Apr 2013
Bibby, one of the main providers of invoice finance to the staffing industry outside the banks, says the company is keen to participate in the expanded and modified Funding for Lending Scheme.
But it says a decision on the new scheme, announced yesterday by the Bank of England, will be dependent on the outcome of discussions with the relevant bodies on the details.
Yesterday RBS said it would definitely participate in the scheme, revamped to boost lending to SMEs by allowing invoice finance providers other than banks to borrow money at reduced rates on condition they lend it to smaller firms.
Edward Winterton, UK commercial director of Bibby Financial Services, tells Recruiter the company is “definitely interested” in participating in the scheme, but that it doesn’t yet have sufficient details on how it will work to make a formal decision.
The company “is speaking with the relevant authorities and government departments to get the details and to drive this through”, he says, adding that a decision will be made “as quickly as we can get the details”.
Winterton adds it is important that the scheme “is done in the right way”, and that the benefits filter down to SMEs.
In a statement, Lloyds Banking Group, a major of provider of invoice finance to the recruitment industry through its Recruitment Finance Division within Lloyds TSB Commercial Finance, tells Recruiter that it welcomes the revamped scheme. The statement makes no mention of whether Lloyds intends to participate in the revised scheme, but says that its participation in the current scheme allows it “to provide discounted interest rates of 1% to all its small business customers for the life of their loans”.
Kate Sharp, chief executive officer of the Asset Based Finance Association, the trade body for the industry, says the amended scheme “will mean that invoice financiers and asset-based lenders can potentially access funding… This has the potential to boost the finance provided to SMEs and the Asset Based Finance Association welcomes it”.
However, she adds: “Work will need to be done to ensure these changes are effective.”
Bibby, one of the main providers of invoice finance to the staffing industry outside the banks, says the company is keen to participate in the expanded and modified Funding for Lending Scheme.
But it says a decision on the new scheme, announced yesterday by the Bank of England, will be dependent on the outcome of discussions with the relevant bodies on the details.
Yesterday RBS said it would definitely participate in the scheme, revamped to boost lending to SMEs by allowing invoice finance providers other than banks to borrow money at reduced rates on condition they lend it to smaller firms.
Edward Winterton, UK commercial director of Bibby Financial Services, tells Recruiter the company is “definitely interested” in participating in the scheme, but that it doesn’t yet have sufficient details on how it will work to make a formal decision.
The company “is speaking with the relevant authorities and government departments to get the details and to drive this through”, he says, adding that a decision will be made “as quickly as we can get the details”.
Winterton adds it is important that the scheme “is done in the right way”, and that the benefits filter down to SMEs.
In a statement, Lloyds Banking Group, a major of provider of invoice finance to the recruitment industry through its Recruitment Finance Division within Lloyds TSB Commercial Finance, tells Recruiter that it welcomes the revamped scheme. The statement makes no mention of whether Lloyds intends to participate in the revised scheme, but says that its participation in the current scheme allows it “to provide discounted interest rates of 1% to all its small business customers for the life of their loans”.
Kate Sharp, chief executive officer of the Asset Based Finance Association, the trade body for the industry, says the amended scheme “will mean that invoice financiers and asset-based lenders can potentially access funding… This has the potential to boost the finance provided to SMEs and the Asset Based Finance Association welcomes it”.
However, she adds: “Work will need to be done to ensure these changes are effective.”
