Future secured for Tadcaster builder thanks to fund support

09/04/2009

Thursday, 9th April 2009

FUTURE SECURED FOR TADCASTER BUILDER THANKS TO FUND SUPPORT

Six weeks ago Tadcaster based TID Services Ltd was facing cash flow problems that had the potential to end the business.  Like many small companies, the building contractor had been refused financial support by the banking system, and despite having over £120,000 of work on its books, owner Mike Tyrell was facing the possibility of having to close his business down or face bankruptcy.

Mike explains; “My business is in construction and renovation and we work on projects of any size within this category. We are a very healthy small businesses employing eight full time staff, but like all building and construction companies we need materials to begin a project. 

“Traditionally suppliers will give you credit for goods so that you can begin a project, and then we take stage payments to recover costs. However because of the current climate many require immediate payment or settlement of your existing account, which causes cash flow problems.

“Customers understandably want us to complete work before making a payment, so we are squeezed between the two situations.

“Despite having over £100,000 worth of orders on our books, I needed a credit facility to buy supplies and maintain the business.  My bank said they couldn’t help me, so I was in real difficulty, with no real options.

Frustrated with his situation, Mike appeared on BBC Look North to tell his story, and from then on, things have started to look up.

In February 2009 Yorkshire Forward launched a £5 million loan fund to provide general loan finance to viable businesses that are struggling to access cash to keep their business liquid.  A member of staff at Yorkshire Forward saw Mike’s piece on Look North and thought the Transition Loan Fund may be able to help.

One of Yorkshire Forward’s delivery partners for the fund, Business Enterprise Fund, tracked down Mike and set about finding out if his business was eligible for support.  A specialist advisor worked closely with Mike to look at his business plan and loan needs and earlier this week, the Fund agreed a £30,000 loan for TID Services that has helped to secure the future of the company and the jobs of its 8 employees.

Alex McWhirter, Assistant Director of Enterprise at Yorkshire Forward explains; “TID Services is an inherently healthy business with a strong order book that was stuck because of the current lending climate. 

“These are exactly the kind of business that the Transition Loan Fund is designed to help and I’m delighted at the outcome of this case.  So far, the fund has helped 14 regional businesses and safeguarded 58 jobs, and there are further investments in the pipeline.

“I’d urge companies in a similar situation to Mike to consider whether they could benefit from this support and get in touch with Business Link Yorkshire to find out about what kind of support is on offer to them.  Unfortunately, we don’t have the budget to invest in every business in our region, but we are committed to, and want to help as many viable businesses as we can through our various business support services.

“In this climate it is easy to just keep your head down and focus on dealing with the day to day challenges, but I would really encourage businesses to take a moment to look at what support there is available from the Public Sector as it could well help to save your business and provide a good introduction to private sector support in the future.

Mike concludes; “It’s no understatement to say that without this financial support and advice, I would have probably had consider closing the business before getting to the point of no return – and it was an option I was desperate not to have to take.

“I am so delighted that we are now in a position to complete the projects we have orders for and continue to grow the business in spite of the recession.  

“Business isn’t easy at the moment, but if you can access the right kind of help and ask questions, you can survive.”

Companies can contact Business Link Yorkshire on 08456 048048 or via www.businesslinkyorkshire.co.uk

Notes to editors:

Yorkshire Forward
• Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region.
• Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding from the Objective One and Two programmes.
• For further information, images or to arrange an interview, please contact Victoria Pourzand, Senior Press Officer on 0113 3949904 or on 07736181063 or email victoria.pourzand@yorkshire-forward.com