A West Midlands manufacturing company has become the first to repay the money it borrowed from Birmingham City Council’s Business Loan Fund in 2011. Widney Manufacturing Ltd, based in Aston, was granted £450,000, after it was unable to secure sufficient funding from the High Street banks during the economic crisis.
Finance Birmingham granted the funding to provide the working capital necessary to support the company following a management buy-out. It was to be paid back over the course of five years.
However, due to a 28% increase in turnover since the loan was taken out, the firm has been able to ‘settle up’ three years’ early. Managing director Steve Roberts said: “The Business Loan Fund was key to facilitating the recent growth of the company, enabling us to create and help safeguard over 120 jobs and increase our annual turnover by £1.5 million.”
Andy Povey, investment executive at Finance Birmingham, said: “Widney is an excellent example of how the Business Loan Fund can support growth. It is a solid business with strong management, and it is no surprise that their robust trading performance has enabled them to repay their loan early.”