Bibby Financial Services (BFS), which provides financing services to small and medium-sized businesses (SMEs), has signed a UK securitisation agreement for three years.

The agreement, which replaces the existing securitisation facility of around £700m, takes BFS’ total funding capacity to over £1bn, reported Financial Times.

The securitisation deal is aimed at supporting businesses amid economic volatility.

Lloyds Bank led the refinance deal, which also saw participation from HSBC, Barclays Bank and funds managed by Insight Investment.

Bibby Financial Services chief financial officer Theo Chatha said: “More than ever, UK SMEs need cashflow support to help them overcome challenges associated with an economic downturn and to grow and thrive.

“Our refinanced securitisation facility provides us with a significant opportunity to grow our funding support for these businesses, combining our SME specialism with greater financing capacity to help new and existing clients.

“With economic and political instability throughout the world, businesses today face a series of significant challenges. Furthermore, as part of our global portfolio, this is a key milestone in our own growth trajectory as we look to expand the support we provide to SMEs in the UK and around the world.”

With a team of 1,000 people in operations across Europe and Asia, the firm caters to some 9,000 SMEs across the globe through its invoice finance, asset finance and FX solutions.

BFS, a 1982-founded company, is a member of the Bibby Line Group, a 215-year-old, family-owned company that conducts business internationally.

Last month, the firm revealed plans to foray into the European marine finance market in the first quarter of 2023.