FDC pumps £5m into local businesses

Frontier Development Capital (FDC), which helps manage the Midlands Engine Investment Fund II, has provided over £5m in debt financing to West Midlands businesses since the fund’s launch a year ago.

So far, 12 businesses across various industries have secured funding, attracting an additional £2m in investment from other sources.

Among the beneficiaries, independent gym chain Fitness Worx expanded into Coventry, F1 parts manufacturer MV Composites upgraded to larger premises in Leamington, and Totally RAD, a Leamington-based music education provider, launched an online tuition platform.

Other funded businesses include Birmingham-based robot manufacturer Mechatronic Production Systems, multi-site automotive repair firm Evolve, Stourbridge contractor GI Sykes and Shropshire’s Nantwich Cheese Company.

FDC provides loans ranging from £100,000 to £2m to support West Midlands SMEs in any sector, with the potential for additional funding from its other managed funds.

Andy Green, deputy fund principal at FDC said: “Having passed the £5m milestone, we have got off to a flying start and have a strong pipeline of enquiries coming through. Our mission is to help improve access to finance. We’ve worked hard to reach out to the whole of the West Midlands and to different business communities to make them aware of the funding available and have been pleasantly surprised by the huge variety of businesses coming forward.

“One interesting trend we are seeing is a new generation of entrepreneurs coming into existing industries, bringing with them fresh ideas and ambitious growth plans. It may be their first business but they can see potential to expand in the future and recognise that funding will be critical to achieve that.”

“Funding can transform a business and we want to help more regional companies reap the benefits. However we know that some are reluctant to use external funding as they see it as ‘taking on debt’ rather than finance for growth.”

David Tindall, senior investment manager at British Business Bank said: “The Midlands Engine Investment Fund II was established to support businesses in the Midlands aiming to scale and grow. As we mark the one-year milestone since its launch, it’s encouraging to see the fund’s positive impact.

“The Midlands Engine Investment Fund II plays a crucial role in assisting small businesses across the Midlands, and together with our appointed fund managers we are ensuring broad access to finance and lending options. We are excited to continue our efforts in supporting more businesses and entrepreneurs, contributing to the region’s ongoing economic success.”