Low-cost cash funds firms' future plans

NORTH Staffordshire entrepreneurs have been applying for low-cost loans from the Michelin Development Fund as the shortage of mainstream credit continues.

Last July fund administrators issued a rallying cry to businesses in Staffordshire after no loans at all were approved in the first seven months of 2008.

They urged firms to come forward over the following 12 months to bid for part of a £1 million cash pot aimed at creating 250 jobs.

Almost a year on, Michelin Development managers are preparing to reveal how many firms have been helped.

Dave Smith, business development manager for Michelin Development in North Staffordshire, would not reveal exact details of the fund's progress until the year is up next month. But he said: "We've had three loans go through recently and there are more on the go.

"We are also dealing with quite a number of inquiries.

"Credit lines are easing slightly, but people are still finding it really difficult to access mainstream funding."

The news comes as the fund in the UK as a whole passed the £3 million mark in loans given out.

Since 2004, about £675,000 of this cash has gone to North Staffordshire firms, creating about 300 jobs.

The balance has gone to East Lancashire, Dundee and Ballymena – three areas where Michelin has, or had, factories.

In total, the low-cost loan and mentoring programme has helped create 1,400 jobs.

Mr Smith said: "We are very pleased to see the fund go past the £3 million mark but, more importantly, we are extremely proud to have supported the creation of 1,400 jobs.

"By helping forward-thinking, progressive companies, Michelin Development can play its part in injecting a vibrancy and sustainability to the regional economy, which in turn will help create a climate in which other start-ups and enterprises can flourish."

The fund is available to new or existing small or medium-sized manufacturing or service firms that can show the investment would create high-quality, sustainable jobs in North Staffordshire.

The loans are at Bank of England base rate (currently 0.5 per cent), they are unsecured and entrepreneurs do not have to hand over a stake in their enterprise.

Successful applicants can also receive free business advice and mentoring from Michelin's specialists.

Stoke-based Data Driven Logistics was awarded £15,000 to bankroll expansion and product development.

The firm is behind award-winning Canditv – technology which allows mobile phones to interact with TV screens.

Kevin Griffiths, managing director of Data Driven Logistics, said: "The Michelin Development loan was used to help invest in the product.

"Overall the Michelin Development loan is a fantastic package of financial support and advice and I would recommend it to any business."

Is your business struggling to access finance? Email us at businessdesk@thesentinel.co.uk