Bibby Financial review: Loans, applications & more

Bibby Financial was formed in 1982 and provides a range of funding options for SMEs in the UK. This review takes a closer look at what it offers.

An overview of Bibby Financial business loans

Bibby Financial primarily offers two forms of funding – asset finance and invoice finance. These are outlined in more detail below:

Asset finance

Asset finance can be a good option if you’re looking to acquire assets such as vehicles, machinery and equipment, but don’t have the cash to pay for them upfront. With Bibby Financial, you can borrow up to £5 million and then make regular repayments over the term of the agreement.

Depending on whether you choose leasing, hire purchase or refinancing, at the end of the term, you may own the asset outright, be able to pay extra to continue using it, or have the option to return it or extend the agreement.

Invoice finance

Invoice finance lets you borrow against the value of your unpaid invoices and can help you release your cash more quickly than waiting for customers to pay up. The amount you can borrow depends on the value of your invoices as well as the type of invoice finance you pick – either invoice factoring or invoice discounting.

With invoice factoring, Bibby Financial collects payments from your customers on your behalf. With invoice discounting, you remain responsible for collecting customer payments.

Bibby Financial also offers invoice finance for construction businesses. Its construction finance solution allows companies to access a portion of their invoice value within 24 hours after submitting it or raising an application for payment. Bibby Financial then collects customer payments on the business’s behalf and releases the remaining funds, minus fees.

In addition, there’s an invoice finance option for exporters, as well as funding solutions for the marine sector, including passenger vessels, coastal ships, day charter boats and tugs and barges.

You’ll also have the option of adding “Bad Debt Protection” alongside your invoice finance facility to reduce the risks caused by customers not paying you for the services or products you’ve provided. You can decide how many customers you wish to cover.

What is Bibby Financial's typical interest rate?

The interest rate you pay will depend on several factors, including the type of product you’ve applied for. Other factors include the size of your business, its annual turnover and your business credit history.

A business that has been trading for several years and has a strong financial record, for instance, will likely qualify for more competitive interest rates than a new business with a limited credit history.

How much can I borrow with a Bibby Financial business loan?

Again, the amount you can borrow will depend on the type of loan you apply for, as well as your business’s financial standing and credit record – the better this is, the more you’re likely to be able to borrow. It can also depend on your business industry or sector.

In general, you’re likely to be able to borrow somewhere between £100,000 and £5 million.

What is the acceptance rate for a Bibby Financial business loan?

Bibby Financial doesn’t publish its acceptance rates, but you’ll typically find it easier to get accepted if you have low existing debt, a high annual turnover, and a good business credit score.

Eligibility criteria and whether you qualify

To qualify for business finance, you’ll usually need to be a UK-registered company and meet the necessary fraud and credit checks. Exact criteria can depend on the type of finance you’re applying for, so always check whether there’s a minimum annual turnover requirement or minimum trading requirements.

If you’re applying for invoice finance, you’ll also need to be a business that raises invoices for payment and it is most suited to businesses that have customers with long payment terms (30 to 90 days).

Bibby Financial has a large team of experts who can discuss your options with you and help you assess which funding facilities your business can apply for.

Additional information

Before applying for funding with Bibby Financial, it’s important to read the terms and conditions of your agreement so that you don’t get caught out. Pay particular attention to the following:

Early repayment fees

You may be charged an early repayment fee if you make an overpayment that exceeds the standard prepayment percentage agreed in your contract. The fee will vary depending on your agreement.

How long does it take to get approved?

The time it takes to get approved depends on your business needs and situation. However, it’s usually within a few days.

Estimated time to receive funds

The length of time to receive your funds depends on how complex your business situation is and how quickly Bibby Financial can access the information it needs. In the best cases, it will take a couple of days, but where things are more complex, it could take longer.

Can a loan be repaid early?

Yes, it’s possible to repay your loan early, but you may have to pay an early repayment charge. Make sure you check your documentation so there are no nasty surprises.

Is security required?

If you apply for invoice finance, your unpaid invoices serve as collateral for the loan, which means you can borrow against their value and may not need to provide additional security such as property.

If you apply for asset finance, the asset being purchased, such as equipment or machinery, is used as collateral for the loan. If you fail to repay the loan, the asset could be repossessed.

What documentation is required

When applying for funding with Bibby Financial, you’ll typically need to provide the following:

Business information

As part of your application, you usually need to provide your business’s registered company number, business name and company address.

You’ll also be asked to supply business bank statements, management accounts, including profit and loss statements and a balance sheet, and financial accounts.

Business owner information

You’ll need to supply the personal details of all business owners, including their names, addresses, email addresses and phone numbers. You’ll also need to provide proof of ID and address.

Funding requirement

The application form may ask you how much you wish to borrow and what you plan to use the funds for.

How to apply for a Bibby Financial business loan

To apply for funding through Bibby Financial, you’ll need to contact the company by phone or fill in an online enquiry form to request a call back so that your requirements can be discussed.

Your specialist will get to know you and your business and then arrange a face-to-face meeting to discuss your requirements further.

Is the application process different to other lenders?

Unlike some lenders, particularly high street banks, you can’t apply for funding directly online with Bibby Financial. Instead, you’ll need to speak with one of its experienced team members to discuss your options. This can make it a lengthier process but also ensures you’re choosing the right funding solution for your company.

How to improve your chances of getting funded

You’re more likely to get accepted for funding if you meet the required eligibility criteria and complete the application honestly and accurately.

Your approval chances will also be higher if your business has a strong credit rating and can demonstrate a steady flow of reliable sales. Establishing a trading history, providing consistent and timely payments to suppliers, and having well-managed financial statements can increase your chances too.

Pros & cons of a Bibby Financial business loan

Pros

Funding is available for a wide range of business types, including those in the construction and marine industries
You can opt for bad debt protection to work alongside your finance facility to protect against the impact of customers not paying or becoming insolvent
You can discuss your options with an experienced team member to ensure you’re choosing the finance solution for your company

Cons

Only suitable if you are looking for invoice finance or asset finance
You can’t apply directly online
Fees may apply

Alternative funding options for different lenders

If invoice finance or asset finance isn’t the appropriate funding choice for your business, there are plenty of alternatives to consider from other lenders. For example:

Why use a finance broker?

A finance broker can simplify the process of finding and applying for a business loan. They have access to a broad panel of lenders and can direct you towards those most likely to approve your application. This can be particularly helpful if your business is new, your credit history is limited, or you’ve experienced debt problems before.

A reputable broker will also outline any fees and manage the application on your behalf. Bear in mind, though, that some brokers charge for their services, so it’s important to confirm the cost upfront. This might be a flat fee or a percentage of the funds raised.

Get started with Swoop's business funding platform

Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.

Bibby Financial business loan review: Interest rates, eligibility, and the application process