Bibby Financial Services Ireland and Permanent TSB have teamed up to offer PTSB business customers an enhanced range of funding solutions designed to improve cash flow and fund their growth ambitions.
The new relationship between the bank and the specialist lender is one of the first of its kind in Ireland.
The new strategic partnership will see Bibby Financial Services Ireland offer "Invoice Finance" services to Permanent TSB customers.
Invoice Finance offers businesses access to cashflow outstanding from their unpaid invoices, helping them to access income they have already earned but not yet received.
This offers businesses the option of using their own funds to improve day to day or seasonal cashflow fluctuations or finance bigger growth plans.
Once a business issues an invoice to a customer, that business can receive up to a maximum of 90% of the invoice's value within 24 hours from Bibby Financial Services Ireland.
The remaining balance will then be paid to the business, minus an agreed fee, when the customer has paid their bill.
Mags Brennan, Head of Business Banking at Permanent TSB, said the bank has big ambitions to grow its SME lending business.
"This innovative partnership will support that and bring more benefits to both new and existing SME customers of Permanent TSB," Ms Brennan said.
She said the new partnership builds on the €50m low-cost lending partnership with the Strategic Banking Corporation of Ireland that PTSB announced recently and will provide even greater choice and flexibility to SME customers who need tailored funding and cashflow solutions to help their business grow and thrive.
Mark O'Rourke, Managing Director at Bibby Financial Services Ireland, said that figures from the Irish Asset and Invoice Finance Association show that, on average, Irish firms are currently waiting 64.1 days before being paid by their debtors.
He said this marked an increase of just under ten days in 12 months, which has resulted in a significant impact on cashflow.
"Invoice Finance offers businesses the perfect funding solution as it helps bridge the gap between raising invoices and getting paid," Mr O'Rourke said.
"While 2021 will undoubtedly bring significant challenges for the Irish economy, particularly the small and medium-sized businesses that form its backbone, it will also offer opportunities for those businesses that use a changed landscape as a chance to innovate," he said.
"We have already seen an increase in merger and acquisitions activity, as well as management buy-outs and buy-ins and we expect to see this continue this year. Significantly, invoice finance is increasingly key to financing these deals in our transformed economic landscape," he added.