FDC deploys over £5m in loans from Midlands Engine Investment Fund II

FDC has provided funding for 12 businesses from a wide range of sectors, attracting an additional £2m in investment from other sources.

The funding has enabled independent gym chain Fitness Worx to open a new site in Coventry, and F1 parts manufacturer MV Composites to fit out larger premises in Leamington and expand its team. It also supported Totally RAD, also based in Leamington which provides music lessons in schools, to develop a new online platform to offer tuition to a nationwide audience.

Other recipients include Mechatronic Production Systems, a Birmingham-based robot manufacturer; Evolve Automotive Repair Centre which has sites in Coventry, Birmingham, Leicester and Warwick; Stourbridge contractor GI Sykes; and Nantwich Cheese Company, a Shropshire food manufacturer.

FDC offers loans from £100,000 to £2m from the Midlands Engine Investment Fund II to help West Midlands SMEs from any sector to grow their business. In some cases it can provide additional finance from its other funds under management.

Andy Green, Deputy Fund Principal at FDC, said: “Having passed the £5m milestone, we have got off to a flying start and have a strong pipeline of enquiries coming through. Our mission is to help improve access to finance. We’ve worked hard toreach out to the whole of the West Midlands and to different business communities to make them aware of the funding available andhave been pleasantly surprised by the huge variety of businesses coming forward.

“One interesting trend we are seeing is a new generation of entrepreneurs coming into existing industries, bringing with them fresh ideas and ambitious growth plans. It may be their first business but they can see potential to expand in the future and recognise that funding will be critical to achieve that.”

He added: “Funding can transform a business and we want to help more regional companies reap the benefits. However we know that some are reluctant to use external funding as they see it as ‘taking on debt’ rather than finance for growth.”

“As many SMEs no longer have a dedicated bank manager who they can turn to for advice, they may also be unsure about what is involved or lack the right financial information to support their application. At FDC we are keen to help them. We want to speak to entrepreneurs with a passion for business and are committed to working with them to achieve their goals.”

David Tindall, Senior Investment Manager at British Business Bank, said: “The Midlands Engine Investment Fund II was established to support businesses in the Midlands aiming to scale and grow. As we mark the one year milestone since its launch, it’s encouraging to see the fund’s positive impact.