Bibby Financial Services Supports Revitalization of Mining Industry with $8M Asset Based Credit Facility for Steel Product Manufacturer

ATLANTA, January 16, 2018

Bibby Financial Services (BFS) announced today a new funding relationship with the U.S.-based subsidiary of an international company headquartered in Australia. The client, a manufacturer of large steel products used by the construction, mining and oil & gas industries, engaged BFS for working capital due to its international capabilities and long-held reputation as a stable and reliable source of funding.

 

Because of depressed conditions in mining, one of its major industry sectors, the U.S. company experienced losses for two years due primarily to lower sales before it brought in new leaders in key positions to help revitalize the business’s plan and structure. Along with other strategic changes to reduce operating costs, the company’s leadership moved to replace its existing restrictive and costly financial facilities with a simplified and flexible $8M asset based credit facility from BFS. 

 

Based on accounts receivable, the facility essentially allows the well-established U.S. subsidiary to borrow against invoiceswhich means it no longer requires funding from its parent. As a result of the U.S. company’s financial independence gained through BFS's support, the international parent company now has more working capital to employ across its global group.

 

The ability to borrow against invoices will enable the client to grow the funding in line with sales; as its sales increase, so does the funding available through the asset based credit facility.

 

“Experts are predicting an upturn in the mining industry in the next year or two,” said Bibby Financial Services CEO North America Ian Watson, “but with ongoing concerns about potential trade issues and other related factors, many  banks and investors will still be reluctant to lend money to companies in the industry. We’re proud to be able to support this company and the manufacturing and mining industries, both of which are so important to the domestic and global economies. ”

 

Bibby Financial Services supports small to medium-sized businesses in nearly every industry with flexible, tailored financing products and other benefits that improve operations and profitability while strengthening their marketplace leverage. 

 

About Bibby Financial Services

Bibby Financial Services is a leading independent financial services partner to more than 10,250 businesses worldwide providing more than $1.25 billion in funding annually and handling $11.6 billion in annual client turnover globally. With over 44 operations in 13 countries spanning Europe, North America and Asia, we provide asset based lending and factoring solutions to help businesses grow in domestic and international markets. Established in 2001, Bibby Financial Services North America has seven offices in the U.S. and Canada that support businesses in virtually any industry. We hold memberships in the Commercial Finance Association, the International Factoring Association, and the American Finance Association.  Bibby Financial Services is part of Bibby Line Group (BLG), a diverse and forward-looking family business with over 200 years’ experience of providing personal, responsive and flexible customer solutions.  To find out more about Bibby USA and Bibby Canada, please visit www.bibbyusa.com or www.bibbycanada.ca.

16 January 2018


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