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

January 16, 2018

ATLANTA–(BUSINESS WIRE)–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 invoices which 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.