A producer of cleaning chemicals is funding its growth using a mix of traditional loans, asset financing, and government funding.
The Dudley-based firm MSH Chemical Manufacturing, which was founded nearly 20 years ago, worked with Lloyds Bank to arrange the traditional loan and to set up the asset financing aspect of the deal.
Rajesh Naik, the director of MSH Chemical Manufacturing, said:
“We had simply outgrown our existing premises and, in order to expand our production capabilities, we needed a larger building that had the potential to accommodate our future growth plans.”
As well as funding the move from the firm’s existing premises in Oak Lane, Kingswinford, to new larger premises on Shaw Road, Dudley, some of the funds will be used to add more vehicles to the firm’s fleet. The money will allow the firm to diversify its merchandise lines and add power-blending products to its range.
The company has secured £105,000 from the Regional Growth Fund (RGF). It is also borrowing a further £400,000 under the Funding for Lending Scheme (FLS) and raising £60,000 using asset backed lending.
UK firms are increasingly using asset financing as a way to fund major development. In 2012, only 3.75% of British SMEs used this form of financing. However, some industry insiders estimate that 60% now use asset finance solutions today.
At DJB, we have many years’ experience when it comes to arranging asset finance solutions. If you would like to learn more about this very effective financial tool and how to use it for your business, please contact us.
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