A SPECIAL fund, set up by Yorkshire Bank at the height of the credit crunch to support Britain’s SMEs, has been snapped up by businesses.
Companies in South Yorkshire were among those to benefit from the invoice finance fund, which proved so successful that it was increased from £100 million to £150 million
Martin Rothera, head of Yorkshire Bank’s National Invoice Finance Team, said: “We said at the launch that this fund would provide a vital lifeline to many UK SMEs, including those in South Yorkshire, and the fact that we have extended our lending and had total take-up shows this to be the case.”
“Those South Yorkshire businesses which have accessed this fund would have found life far harder without it but have been able to gain a competitive edge and will now play a part in driving their local economies forward, creating and preserving jobs as the steady emergence from the downturn continues.”
Companies that benefited from the programme included Sheffield-based Galaxy Insulation and Dry Lining (Holdings) which has exceeded its turnover target, is creating more jobs and increasing investment.
Galaxy was founded by three Yorkshire entrepreneurs, five years after they sold a similar company to Europe’s leading supplier of insulation, interiors, roofing and specialist construction products, city-based SIG.
Galaxy’s finance director, David Beech, said: “From a standing start in autumn 2009, we now have more than 450 customers nationally. As our reputation for good service has grown, our customers have entrusted us with larger parts of their business.”
Galaxy initially had a £500,000 facility, which has now been increased to £800,000.
It has used the funding to almost double its workforce and to buy lorries and trailers.