Alternative finance provider pledges £50m to grow Midlands SMEs

An alternative finance provider has revealed plans to inject £50m into supporting growing West Midlands businesses over the next 12 months.

Growth Street is targeting firms in sectors such as manufacturing, wholesale and professional services.

The finance provider has matched £100m of loans between investors and borrowers since its launch in 2015.

Chief Executive Greg Carter said: “The Midlands is a UK manufacturing powerhouse, and we want to ensure that SMEs from Birmingham, Coventry, Wolverhampton and beyond are able to fulfil their potential with an investment boost.”

He said SMEs in the Midlands were facing an estimated £360m funding gap, and with increasing uncertainty caused by the lack of a Brexit deal many were finding it difficult to secure deals – a situation causing the economy to stagnate.

“Access to flexible finance can help mitigate risks as well as allowing fast-moving businesses to take advantage of opportunities,” added Mr Carter.

The move has been endorsed by the Greater Birmingham Chambers of Commerce.

Chief executive Paul Faulkner said: “We are delighted that Growth Street is planning to make this substantial investment in SMEs around the Midlands region over the next 12 months.

“Not only is it a further sign of business confidence across the Midlands, it reinforces the region’s status as a powerhouse for startups and SMEs.

“Initiatives like Growth Street are extremely important to provide local businesses with the tools they need to grow and flourish.”