How the National Tooling Loan Fund Can Help the Manufacturing Industry Grow
August 30, 2022
FDC explores the National Tooling Loan Fund and how it can help manufacturers complete new and confirmed projects during uncertain economic times.
The National Tooling Loan Fund is managed by Frontier Development Capital (FDC). It is just one of the funds available to SMEs that supports component manufacturers and toolmakers within England to accelerate their capabilities when they have had difficulty securing traditional sources of funding elsewhere. The Fund offers eligible manufacturing businesses working within any sector investments from £50,000 to £2m to support the design, development and manufacture of the tooling required for their new and confirmed projects.
The manufacturing sector plays an important part of the UK economy, with an annual output of £183 billion the UK remains the ninth largest manufacturing nation in the world according to Make UK’s 2022 report . The industry supports thousands of highly skilled, well-paid jobs right across the country, with sectors such as automotive contributing around £12 billion to the economy . However, since January 2021 manufacturing activity rose at its weakest rate and business optimism is at its lowest, with difficulties sourcing components, production delays and a downturn in the market amongst others being documented as key problem factors .
This is why finding the right investment partner and funding options is crucial to help SMEs find the capital needed to alleviate some of the stresses and continue to complete project orders with confidence.
Since launch, the National Tooling Loan Fund has completed 52 deals, creating and safeguarding 998 jobs and continues to support manufacturing businesses across England.
Some of the deals completed in the last year include:
Based in Leicester, ATM Automation has over 40 years of experience in the manufacture of robotics and production automation systems and is an internationally trusted supplier to many sectors including automotive, healthcare, packaging, and construction.
The business received £400,000 of investment from the National Tooling Loan Fund to design and manufacture assembly tools to provide the International Automotive Components Group with interior components for the Ineos car models.
Rotolight specialises in the research and development, manufacture, distribution, and sales of their market-leading advanced LED lighting products, aimed at the Broadcast, Film and Photographic industries.
They received a £200,000 investment to enable them to redevelop their Neo, Aeos and Anvova products to include their latest advanced technologies as well as create newly designed exteriors.
Businesses in the manufacturing industry play a significant role in the UK economy and funding providers such as FDC can give them the financial assistance needed to support growth. Finding the right finance option for your manufacturing business can be challenging, which is why we encourage manufacturing SMEs to explore the alternative funding landscape and find the best investment solution to meet their business’ needs.
That is why alternative lenders such as FDC have a range of investment options available to the manufacturing industry such as the National Tooling Loan Fund which is available to eligible manufacturing businesses across England.
If you would like to discuss a deal or have any questions about the National Tooling Loan Fund, get in touch or download our Manufacturing Funding Pack for more information.