Bibby Financial Services (BFS) has put in place measures to support businesses following Carillion’s collapse.
The measures, directed at new and existing customer firms in the construction space, include:
- Enhanced advance rates, for the release of additional working capital;
- Same-day funding decisions for new applications;
- Free debtor reviews, to help SMEs evaluate the impact of Carillion’s collapse on cashflow for other agreements;
- Bad debt protection review, to identify which debts can be shielded from customer insolvency, non-payment or protracted default.
Helen Wheeler, managing director for construction finance at BFS, said: “The ramifications of Carillion’s collapse are being felt throughout the sector and beyond, with an estimated 30,000 business impacted.
“As a provider of specialist funding for the construction sector, we are announcing measures that will enable us to offer additional support for subcontractors and SMEs that have been directly or indirectly affected.
“These measures will help SMEs to evaluate if and how their businesses are impacted, and understand support available in relation to funding, credit control and bad debt protection.”
Banks involved with Carillion have also put safety nets in place for smaller contractors affected, after business minister Greg Clarke and the Federation of Small Businesses (FSB) urged them to contain the fallout.
HSBC has launched a £100m fund for businesses owed payments, with RBS and Lloyds also putting forward £75m and £50m respectively. All three banks provided reverse factoring facilities for Carillion.
Building society Nationwide, meanwhile, has pledged to take on 250 contractors as its own employees, as well as to guarantee ongoing work on contracts employing about 1,500 jobs.