SME funding needs behind finance sector growth

Activity in the state’s debtor financing sector has ramped up, with one national business setting up shop in Perth and another, existing player moving to a bigger office.

Global debtor financier Bibby Financial Services plans to expand its presence in Western Australia, relocating to a larger office in West Perth, with the potential to more than double its number of staff to 25.

Bibby managing director Mark Cleaver said WA was the second fastest growing state for debt finance after Queensland, and noted the company funded about $258 million in turnover in WA.

“In the 12 months to September 2014 total debtor finance in WA increased by 13 per cent, outperforming many business-funding solutions,” he said.

The growth has also introduced new players to the WA market, with national business FactorOne announcing its move into WA.

The company cited a demand from local SME clients, which have experienced a drop in confidence due to the downturn in WA’s mining industry and cannot get finance approval from traditional funders.

FactorOne has appointed former Australia and New Zealand national sales director for Bibby, Gary Green, to lead its new WA team.

Mr Green also oversaw the launch of Bibby’s Perth office in 2008.

Debtor finance is also known as factoring, invoice finance and invoice discounting, and traditionally provides small and medium-sized businesses with a line of credit linked to sales by releasing cash tied up in unpaid invoices.