GM Loan Fund off to flying start

THE Greater Manchester Loan Fund has reported a strong first year and a growing deals pipeline.

It has so far sparked average growth of 28% in the three businesses it has lent to, and protected and created more than 300 jobs.

The GMLF, which is managed by the Manchester office of Maven Capital Partners, has £20m to lend to small and medium-sized businesses to help them grow. Typically these businesses are unable to access enough bank debt, or don’t have sufficient assets for the high street lenders for them to support.

Former banker Andy Thomas joined Maven from the Royal Bank of Scotland, said demand was strong across a multitude of different business sectors.

“We have lent to businesses less than two years old, and to a 30-year-old company too. It’s not just about the money, but support and advice – we work very closely with the companies we have lent to.

“We are flexible in terms of sectors and will look at most things, but we wouldn’t for instance lend to a payday lender, for example.”

The Fund provides flexible loans of between £100,000 and £500,000, with the potential for follow-on funding up to £750,000.

Thomas says the flexibility around interest payments and payment terms is also very compelling for the management teams of the businesses that have borrowed front the fund.

GMLF was launched in August 2013 by the Association of Greater Manchester Authorities and must be invested by 2018.

Salford cloud computing company Vaioni, which has received £500,000 in total, has been able to expand its team by 14 and invest in a new network. Recurring revenue has grown 30% to £3.5m and it plans to hit £10m in the next three years.   

Bolton company Love Energy Savings.com, an online price comparison service for businesses, has boosted staff numbers by 34% and sales have grown 67% since borrowing £750,000 in two chunks.

Meanwhile, Salford-based Wilkinson Star, which has been trading forn 36 years. has launched a new range of welding machines with the help of a £400,000 loan.  Revenues have risen 21% since February 2014 and are expected to top £10m.

Thomas added: “The fund still has over three years remaining  so we hope to find many more opportunities to support growing companies. We are hoping to be announcing several more investments in the coming weeks, and want to get the message out that we are here and ready to engage with businesses wanting to grow.”