THINCATS has launched a £50m funding programme for small- and medium-sized businesses in the West Midlands.
The peer-to-peer business lending platform is partnering with start-up loan company BizBritain on the initiative.
ThinCats said that the programme has been launched in response to the growing funding gap in the Midlands.
The gap is estimated to be at more than £360m following the withdrawal of high street banks from business lending.
“Earlier this year, the British Business Bank revealed that small- and medium-sized enterprises (SMEs) in London received more funding than any other region in the UK combined,” said Damon Walford, chief development officer at ThinCats.
“The government has tried to tackle this regional funding gap with initiatives such as the Midlands Engine Investment Fund and whilst this is a very promising start, there is room for other programmes as well.
“One of the key challenges lies in the fact that businesses still predominantly turn to their main bank for finance and are less aware of the growing number of alternatives.
“As a Midlands-based business, we feel a deep affinity to the area and a responsibility to help close the funding gap here.”
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Funding is available for West Midlands-based SMEs looking for between £100,000 and £10m.
Applications for finance between £100,000 and £500,000 will be facilitated by BizBritain.
“This is an exciting time for local SMEs, with the West Midlands being the fastest growing regional economy outside of London and growing businesses require support and finance to achieve their ambitions,” said Gary Lennon, business development director, BizBritain.
“Working alongside ThinCats, as local people who live and work here, we are keen to help SMEs obtain funding that accelerates their future growth and adds to the region’s prosperity.”
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