Fledgling businesses offered loan funding

WOULD-BE entrepreneurs struggling to get funding to kick-start their business are being offered help through an independent loan guarantee scheme.

With the onset of the credit crunch followed by recession, fledgling businesses have been denied access to normal funding streams such as the banks.

Arrow Small Business Finance, which operates with the support of Advantage West Midlands, is offering itself as a lifeline to businesses in need of an initial injection of cash.

The organisation has more than £600,000 available to lend between now and the end of March next year. Loans of up to £10,000 are available to small businesses that cannot obtain the finance they need through the banks.  The loans are available as part of a package of finance or stand alone.  

Alison Bradley, chief executive of Arrow, said: “We operate on a not for profit basis.  Business formation and employment opportunities are at the forefront of our aims and we are pleased to have secured funding through Birmingham City Council, AWM and the European Regional Development Fund that will enable us to build on our work of the last 15 years and continue to support small businesses in the West Midlands.”

Birmingham-based plumbing, drainage and pest control firm CW Services is the latest business to benefit from the funding support.

Owner Christopher Wright said: “I have been a qualified plumber for 17 years.  Prior to the recession I was doing a lot of sub-contracting work, but as the recession tightened that dried up.”

He tried looking for full time employment but had no joy.  So he decided to start up his own business and invested some of his savings but had insufficient funding to do everything he needed.

“The loan from Arrow has enabled me to buy a vehicle and a credit card machine, take out some small ads in directories, have leaflets and business cards printed, and still leave a float to pay suppliers.  It has given me the boost I needed,” he said.  

Arrow has helped more than 400 businesses, which would otherwise have been refused a loan, to get started. Since 1994 it has loaned more than £2m to help businesses get started and support the regional economy.

Businesses in a similar situation to CW Services should telephone 0121 607 0129 or go to www.arrowsbf.co.uk for more information.