Challenger bank nears major funding milestone

David Parsons

Solihull-based challenger bank, Secure Trust Bank is nearing an important funding milestone.

The bank’s Commercial Finance arm is closing in on £15m lent to Midlands-based SMEs. The figure is seen as recognition of the growing role of alternative finance as a means of funding small business growth.

Since launching in November 2014, the company has provided £9.3m to businesses based in the West Midlands, with a further £4.7m to SMEs in the East Midlands.

This includes the seven-figure funding facility provided to Northampton-based XP Recruitment, the industrial and logistics employment specialists, as well as finance packages for companies including Birmingham-based Electrical Distributors.

Nationally, the funder has advanced business loans in excess of £150m to SMEs, supporting both organic and acquisitive growth strategies. This includes working alongside private equity houses to complete management buyouts, as well as enabling businesses to expand their reach and production both in the UK and overseas.

David Parsons, strategic development director at Secure Trust Bank Commercial Finance, said: “The Midlands is a hotbed for entrepreneurial thinking, with Birmingham the UK’s leading city for start-up creation outside of London. In order to ensure that these businesses become reality, SMEs need to find a funding provider that understands their needs, as well as offering the flexibility that recognises the potential for growth.

“This is the attitude that we have applied to all of our facilities, building strong relationships with management teams and the business advisory community across the region to boost growth. We look forward to working with more ambitious management teams across the Midlands in the future.”

The AIM-listed bank is one of Solihull’s largest employers with a workforce in excess of 700 people.