77% lending rise for Aston Reinvestment Trust
FUND manager ART (Aston Reinvestment Trust) saw total lending rise by 77% to over £3.1m in the year 2014/15.
The trust said the figures continued a significant trend that started in 2012 and demonstrated there remained an appetite among businesses across the West Midlands for borrowing and investing in the future.
Innovation Birmingham Campus-based ART is a Community Development Finance Institution (CDFI), which lends to businesses unable to meet any or all of their requirements from the banks. It often lends alongside the banks as part of a package of finance. Its loan fund comes from a combination of public and private sector support including social investment from individuals and companies keen to see the local economy thrive, creating and protecting jobs.
“Packages of finance are becoming increasingly common, with a number of providers sharing the risk,” said ART chief executive Steve Walker. “We lend £10,000 to £150,000 with an average loan size of around £30,000. Other lenders specialise in either larger or smaller loans and it makes sense for us to work together.
“At a time when the variety of options for finance available to businesses can seem confusing, ART is seeking to clarify its position and make it easier for potential customers to see whether its type of finance is right for them.”
As the trust looks to develop the scope of its offer, Walker revealed it would be changing its name and introducing an enriched website.
“The new name, ART Business Loans, will make it more immediately apparent what we do. We lend across the West Midlands, in every business sector,” he said.
In the past year, he said the trust had seen a surge in demand from established businesses wanting to achieve growth.
Looking to the year ahead, Walker said the new body was anticipating further growth.
“We sense optimism among businesses and we are here to support them in their plans. We make a personal assessment of loan applications, offer advice and signpost to other lenders where appropriate,” he said.
“Many of our borrowers take advantage of the opportunity to repay us early, with no penalty, and find that a loan from ART enables them to leverage further finance or refinance after a time.”
