Steelway invests in further growth

Steelway Fensecure in Bilston Road has made the investment after securing the support of a £500,000 asset-based funding package from Lloyds Bank.

The company, which was founded in 1928, provides high quality steel fabrications for a wide variety of sectors, and has a growing number of clients in the water, power, nuclear, telecoms and construction industries, across the UK. The business manufactures products including metal flooring, walkways, staircases, ladders and fire escapes using mild steel, aluminium and stainless steel at its Queensgate Works.

In order to enable the business to enhance its innovation strategy and expand its product range, the business needed to purchase a second laser cutting machine.

Steelway Fensecure banks with Lloyds Bank Commercial Banking, and its relationship director Mike Middleton recommended that the business meet with Lloyds Bank Commercial Finance's team for funding support. TheyCommercial Finance provided the hire purchase facility to fund the purchase of the laser cutter, which means that the company can purchase the machine and pay down the full amount over an agreed period to ensure its cashflow remains fluid.

Funding was granted using the Funding for Lending scheme. As part of this scheme, Lloyds Bank is offering discounts of one per cent to all small and medium-sized enterprises in all sectors for the life of their loan.

Steelway Fensecure, which employs 153, has also taken on an additional seven members of staff in the last three months, and plans to create further jobs in the next year to help facilitate its ongoing growth ambitions. Dan Houghton, managing director at Steelway Fensecure, said: "We wanted to invest in the development of our product line and design innovation, to ensure that we can continue to offer customers the highest quality steel fabrications in what is a competitive industry. The hire purchase facility was ideal, allowing us to spread the cost of the equipment over a fixed term. The Lloyds Bank team were extremely supportive throughout the process and we are grateful for the bank's support."

Keith Moore, regional manager at Lloyds Bank Commercial Finance, said: "Steelway Fensecure is a forward thinking business experiencing buoyant demand for its highly technical steel fabrications. This latest purchase will enable the company to significantly increase its production capabilities and is a testament to the business' growth ambitions.

"SMEs like Steelway Fensecure are ideally suited to benefit from the flexibility of hire purchase facilities. The funding enables them to purchase the machinery that they need to meet increased customer demand, without putting pressure on the business' working capital."