Engineer takes success story to MPs

BOSSES of Wirral-based Mole Engineering, which trebled its turnover within a year following investment the Merseyside Special Investment Fund, have been asked to speak at an event in the House of Commons to raise awareness about alternative lending.

The event today (Monday, November 2), has been organised by Responsible Finance, formerly known as the Community Development Finance Association, the membership body for responsible lenders.

Responsible Finance bids for alternative sources of finance, usually through government-backed schemes, to be invested by its members including MSIF, which manages money for the Regional Growth Fund.

The organisation is running the event to launch its new brand and highlight to MPs the need for alternative sources of funding in a bid to raise fresh funds for the future.

Responsible Finance says that alternative lending has experienced a rapid rise over the last year, with over £250m of loans creating 10,000 new businesses and 25,000 jobs across the UK.

It predicts that its members will lend a further £1.9bn by 2020, supporting 75,000 more businesses and helping 360,000 more people avoid high interest lenders.

Mole Engineering was backed by MSIF last year.  The company specialises in directional drilling – a precision technique which can be used for underground installations including fitting pipes and tables.

Customers range from single householders to multi-national companies and projects include work for Marks & Spencer, Channel 4, BBC, Microsoft AstraZeneca, RSPCA, Balfour Beattty and the MOD.

MSIF provided a £75,000 loan last year as part of a £125,000 package which was used to invest in new machinery which enabled the company to treble its turnover from £300,000 to £1m within a year.

David Furlong, managing director of Mole Engineering said: “Despite having a good business track record we couldn’t raise the funding we needed from traditional sources.

“We approached MSIF and they were supportive from day one. We could not have grown the business without their funding. 

“Within the first year we increased our turnover from £300,000 to £1m and increased our staff from eight to 18.  We are continuing to grow and expect to reach a turnover of around £1.5m within the next 3 years and take on a further six to eight staff.

“Access to finance is a critical issue for businesses like ours, and I sincerely hope that MSIF can support thousands more businesses for years to come.”

Lisa Greenhalgh, MSIF’s chief operating officer, said:  “Mole are a fantastic example of why alternative lending is so important.
 
“Alternative lenders have created thousands of opportunities for businesses that has fuelled growth and helped new businesses get off the ground.”