Non-bank debtor finance specialist, Bibby Financial Services has used reports that the Commonwealth Bank is withdrawing its debtor finance service to commit to the Australian market.
Bibby managing director Greg Charlwood said small to medium sized enterprises (SMEs) should not misinterpret the Commonwealth’s decision to exit the area as suggesting there was a question mark over demand and growth.
“SMEs are in greater need of flexible forms of working capital, and we don’t believe the bank’s decision will adversely affect the market in Australia,” he said.
Charlwood said business confidence remained fragile, and that SMEs were contending with rising interest rates combined with a sharp rise in the Australian dollar in recent months – along with continued pressure from the Australian Taxation Office.
More than ever, businesses need reliable sources of working capital to overcome cash flow volatility,” he said.
