Loan guarantee pump primes fuel firm
8 June 2009
Amplefuel will grow thanks to a government-backed loan
Bio diesel producer Amplefuel is now on target to be one of the top 10 UK producers, thanks to support from the new government-backed Enterprise Finance Guarantee. The scheme was launched in January as one of several government initiatives which is helping businesses to survive and grow in spite of the recession.
Accessed through high street banks, the scheme provides a government-backed guarantee to help businesses secure trade finance for viable propositions where banks would otherwise be unable to lend due to lack of security. In the case of Doncaster-based Amplefuel, the £200,000 loan from HSBC means they are now projecting turnover in excess of £4million with the potential to create up to 8 new jobs over the next 12 months.
Managing Director, Steve Pepper has had a rollercoaster ride over the past 3 years, setting up the business that will produce up to 25 million litres a year once full production commences. For Mr Pepper this has been more than just a business proposition. He sold his house to fund the building of the plant, which has gone through a rigorous process to comply with strict environmental legislation.
Steve said "My first promise of finance collapsed alongside the banks. I wasn’t sure what to do next but was able to access a detailed financial health check through Business Link which provided HSBC with all the forecasting information they needed to make a decision, demonstrating the viability and growth forecasts for the business."
The Enterprise Finance Guarantee scheme has taken off since its launch in January with registered lenders seeing a ten-fold increase in loan demand from less than £3 million in week one to around £30 million a week by the end of March.
For more information on the Enterprise Finance Guarantee Scheme visit
http://www.businesslink.gov.uk/
