Non-bank lender Bibby has launched a trade finance offering in Australia with a view to bridging what it views as a “cash crunch” in the country.

Included in the solution will be purchasing facility and invoice financing, with the company saying that it requires less collateral than the average loan or letter of credit facility.

Speaking to GTR, Bibby’s Australia and New Zealand managing director Mark Cleaver says the offering is most likely to benefit “independent SME wholesalers of components and parts, machinery, and consumer goods selling into major retail chains which wield a lot of market power in Australia, given the longer payment cycles and tougher credit criteria from major banks”.

Cleavers says the solution will support the Asia-Australia trade flow. Australia is a major importer of finished electronic goods, parts and components from Asia, while its commodity and resource sectors send the lion’s share of their produce to Asia.

“The importance of Asia to Australian trade is high, and the prospect of increased trade flows in the future is very good, and as such we do believe that the majority of new clientele will primarily be engaged in regional trade with Asia. However, it is suitable for businesses with diverse supplier bases throughout all regions,” Cleaver says.

However it is primarily importers that stand to benefit from the new product, which will help alleviate margin pressure caused by the falling Australian dollar.