Fund launched to provide business loans up to £75,000
A COVENTRY and Warwickshire loan fund has set up a fund aimed at supporting the area’s established businesses.
The Coventry and Warwickshire Reinvestment Trust’s Enterprise Loan Fund aims to help businesses that require finance for working capital, refurbishment, property development, machinery or equipment.
CWRT’s Enterprise Fund is available for existing business and lends between £25,000 and £75,000.
Tim Powell, chairman of the Access to Finance business group at Coventry and Warwickshire Local Enterprise Partnership (LEP), said: “CWRT is an alternative source of funding for growing enterprises unable to attract the funds they require from more traditional lenders.
“Coventry & Warwickshire LEP has recognised the importance of encouraging and facilitating the growth of our businesses particularly in the priority areas of advanced manufacturing, low carbon and digital sectors who have potential to significantly increase employment in the region and CWRT is playing a major part in achieving that objective with their funding solutions.”
A recipient of the new fund is Coventry-based Special Bolt, a family-run UK bolt manufacturer that produces components in various materials.
When seeking £50,000 to grow its business, Special Bolt was unable to obtain finance through its business bank.
Tim Bayliss, managing director at the company, said: “We have received four loans from CWRT which we have used for growth capital and investment in machinery. Critically, the loans have helped us to move away from an invoice factoring company, and this has led to a cost saving that is 1.5 times larger than the money we borrowed originally.”
The funding has also helped Special Bolt expand, by creating seven jobs and takings its workforce up to 29 people.
Mike Musson, chief executive of CWRT, said: “We are geared towards growing the local economy and provide a reliable and flexible source of alternative finance. It’s rewarding to see how Special Bolt has grown using four of our loans.”
