Consett business centre scoops £25k loan to grow

A Consett-based business centre has secured a £25k loan from the Entrust-managed Finance for Business North East Microloan Fund to fuel growth.

Perspective Consett, which is based in the Ponds Court Business Innovation Centre, provides conference room space, hot-desking, telephone answering and a virtual office address.

Managing director Fran Williams, who also works with husband Simon at family-owned Stanley-based BLS Electronics, said: “Within this geographical area, our offering is quite different. You don’t get this sort of thing in a rural community. Hopefully, we have identified a need that’s there – that certainly seems to be the case.

“We are here to support small business, homeworkers and bigger corporations. Our clients range from a national retailer to one-man businesses.

“We are giving people facilities they otherwise wouldn’t have, such as meeting rooms, conference rooms and virtual offices. An engineering company may just need a conference room once a year and has no space to spare at its own premises. It’s a great way for organisations to thrive while keeping costs down.”

Perspective initially leased a section of the Innovation Centre for a year but in November, it took on a further three-year lease and moved all its space into one section of the building.

Fran added: “Like many new companies we made a mistake about how quick the take up would be.

“However in November we moved across the corridor so all our space was together. I don’t know if it was that or timing, but since then business has just snowballed. We have lots more clients and we are beating our targets.

“Since I saw my contact at Entrust, we have gained six or seven new clients already this year. We’re very excited for what the future holds.”

The Williams family self-funded the business for the first year, making a significant investment in leasing and furnishing the space.

With help from the Growth Accelerator Access to Finance programme and Harland’s Accountants LLP’s Glyn Davison, they turned to Entrust’s North East Microloan Fund – which had 15 applications totalling £248k in the first two weeks of January, almost double the number received a year ago - to source further funding.

The £25k loan will be used for capital costs such as rent and additional desks.

Entrust’s head of funds and investment, Peter Gilson, said: “The success of Perspective Consett over the last quarter of 2013 is a clear indication that businesses in the North East are finally beginning to feel more optimistic about their prospects.

“It reflects the situation we’re seeing here, with more and more small and growing businesses applying for support, providing evidence that economic activity and confidence is truly returning to the region’s SMEs.

“Fran’s research identified a real need for flexible business space in the Derwentside and surrounding rural areas and her findings are now bearing fruit. Perspective’s monthly revenues topped £1,000 for the first time in October, and since then, the business has been bringing in more than £1,600 a month.

“New businesses like this which have strong potential for growth, but need help with their initial costs while they build their customer base and reputation, are exactly the kind of enterprises that the North East Microloan Fund was set up to support.”

The North East Microloan Fund can provide sums of between £1,000 and £25,000 to help launch or support established SMEs as they grow. The fund has £2m to allocate this year and is able to help many viable businesses that are still finding it difficult to secure finance from the banks.

For more information and details of how to apply for an Entrust fund loan go to http://www.entrust.co.uk/money.