Supporting manufacturers across Yorkshire
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Martyn Kendrick, Area Director, Lloyds TSB Commercial Banking in Yorkshire
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By Martyn Kendrick, area director at Lloyds TSB Commercial Banking in Yorkshire. WITH the good news that the UK economy remained in growth for the second quarter of 2013, Yorkshire’s manufacturing firms will be turning their attention to expansion plans and securing investment for the second half of the year. In the recent economic environment, businesses across the region have been adapting to remain competitive, whether this is by diversifying product lines or exploring new markets. As expansion opportunities arise, it is important that firms have substantial working capital available to enable them to capitalise on these trading prospects. The latest Lloyds TSB Purchasing Managers’ Index survey for Yorkshire and Humber revealed that the region’s private sector had experienced its strongest output growth for 15 months during April, rising for the sixth consecutive month. The survey, which includes both manufacturers and service sector firms, also highlighted the fastest rise in new business of all the English regions, placing Yorkshire’s businesses in a prime position for growth over the next 12 months. Planning for growth Our commitment to the sector enables us to maintain a greater understanding of manufacturers’ banking needs. When the Otley-based engineering firm Craftsman Tools looked to expand its 20,000 sq ft premises by a further 5,000 sq ft, we were able to provide a five figure loan in addition to an asset finance facility from Lloyds TSB Commercial Finance, used to purchase two new machines to enable the company to manufacture considerably larger parts for companies in the oil, gas and power generation sectors. The expansion enabled the company, this year celebrating its 60th anniversary, to both increase its manufacturing capacity and create a new apprentice training school. Businesses are also looking for a lender with sector-specific knowledge that can provide relevant guidance and support throughout the funding process. Due to this demand we have created a dedicated team of manufacturing relationship managers that are trained and accredited by the Warwick Manufacturing Group, which allows us to provide the right solution to meet businesses’ financial requirements. There is a wide range of funding options available to manufacturers looking at expansion opportunities, including the Government-backed Funding for Lending Scheme (FLS), through which businesses across all SME sectors can benefit from a one per cent discount on interest payments on all loans. Using FLS we have lent £3.3 billion since September 2012 and we are committed to lend £5 billion to SMEs through the scheme this year. The growth and success of manufacturing firms is vital to both Yorkshire and the wider UK economy, and we will continue to support them in their funding requirements. More articles in
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