Read how one Tadcaster business was saved from closure by taking advantage of our new Transition Loan Fund. And it was a member of
Yorkshire
CASE STUDY: TID Services
Six weeks ago, TID Services was facing cash flow problems severe enough to threaten the business. Despite over £120,000 of work on its books, this small building contractor had been refused support by the banks. And owner Mike Tyrell was facing the possibility of having to close his business.
The reason for the problem
TID is a small business employing 8 full-time staff and had good prospects through its order book for construction and renovation projects. The cash flow problem was simply one of timing: like all construction companies, TID needs to buy materials up-front before they can begin a project.
As Mike points out: “Traditionally, suppliers give you credit for goods, and then we take staged payments from our clients to cover those costs. However, because of the current recession, many suppliers are now asking for immediate payments. Our customers understandably want us to complete their work before they pay for it, so we were getting squeezed hard between the two.”
Trying to get a credit facility
TID needed a credit facility to buy these supplies and maintain the business, but their bank said they couldn’t help. Feeling frustrated, Mike appeared on BBC Look North to tell his story, and things immediately started to look up. Fortunately, a member of staff at Yorkshire Forward saw the programme, and thought the Transition Loan Fund may be able to help.
The Transition Loan Fund
The £5m Transition Loan Fund was launched by Yorkshire Forward in February 2009 to provide viable businesses that had been refused finance from their banks with a loan to meet a shortage of working capital.
We asked one of our delivery partners for the fund, Business Enterprise Fund, to track Mike down and to find out if his business was eligible for support. A specialist advisor worked closely with him, looking at his business plan and his loan needs. And last month, the fund agreed a £30,000 loan which has helped to secure the future of the company and the jobs of its 8 employees.
Support to date
So far, the Transition Loan Fund has helped 14 of the region’s businesses and safeguarded 58 jobs. Further investments are in the pipeline.
Could you benefit?
The message from Alex McWhirter, assistant director of enterprise at Yorkshire Forward, is this:
“I’d urge companies in a similar situation to consider whether they could benefit from this support. If so, they should get in touch with Business Link Yorkshire. We want to help as many viable businesses as we can through our various business support services but the amount we can lend through the Transition Loan Fund is restricted by our budget.”
Find out more
Companies can contact 
Business Link Yorkshire
on 08456 048048.
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