Bibby Financial Services (BFS) announced 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. ”