A Wirral-based business which trebled its turnover within a year following investment by MSIF through money it manages for the Regional Growth Fund (RGF) has been asked to speak at an event at the House of Commons to raise awareness about alternative lending.
Mole Engineering was backed by MSIF last year. The company specialises in directional drilling – a precision technique which can be used for underground installations including fitting pipes and tables.
Customers range from single householders to multi-national companies and projects include work for Marks & Spencer, Channel 4, BBC, Microsoft AstraZeneca, RSPCA, Balfour Beattty and the MOD.
MSIF provided a £75k loan last year as part of a £125k package which was used to invest in new machinery which enabled the company to treble its turnover from £300k to £1m within a year.
The event is being organised by Responsible Finance, a consortium which bids for alternative sources of finance, usually through government-backed schemes, to be invested by its members including MSIF.
Responsible Finance is running the event to launch its new brand and highlight to MPs the need for alternative sources of funding in a bid to raise fresh funds for the future.
The organisation says that alternative lending has experienced a rapid rise over the last year, with over £250 million of loans creating 10,000 new businesses and 25,000 jobs across the UK.
Responsible Finance predicts that its members will lend a further £1.9 billion by 2020, supporting 75,000 more businesses and helping 360,000 more people avoid high interest lenders.
David Furlong, managing director of Mole Engineering said: “Despite having a good business track record we couldn’t raise the funding we needed from traditional sources. We approached MSIF and they were supportive from day one. We could not have grown the business without their funding. Within the first year we increased our turnover from £300k to £1m and increased our staff from 8 to 18. We are continuing to grow and expect to reach a turnover of around £1.5m within the next 3 years and take on a further 6 – 8 staff."
“Access to finance is a critical issue for businesses like ours, and I sincerely hope that MSIF can support thousands more businesses for years to come.”
Lisa Greenhalgh, MSIF’s chief operating officer said: “Mole are a fantastic example of why alternative lending is so important."
“Alternative lenders have created thousands of opportunities for businesses that has fuelled growth and helped new businesses get off the ground.
“It is crucial that the Government continues to provide financial support so that we can continue to invest and create a long-term positive impact on the region’s economy.