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Lloyds Bank rolls out automotive manufacturing North East support scheme

The Commercial Banking division of Lloyds Bank has launched a scheme to allow North East businesses operating in the automotive supply chain to get specialist support when needing to invest in bespoke tools to complete contracts.

Tooling Finance is tailored to manufacturers with a proven track record in the automotive supply chain, and provides up to 90 per cent of the project cost upfront, with typical terms of up to 24 months.

By freeing up cash that would otherwise be tied up in machinery, tooling finance aims to take the pressure off working capital and providing ambitious businesses with the capital to invest in growth.

Michael Hindhaugh, Relationship Director for SME manufacturing firms in the North East, Lloyds Bank Commercial Banking, said: “We have a deep understanding of automotive manufacturing and know that the UK is one of the most attractive locations for investment in the sector.

“As a result, our clients through the supply chain in the North East are seeing increasing opportunities for growth. We also understand that high up-front costs can make investing in growth very difficult for firms that are looking to grow.

“To help them, we have developed a tooling finance solution that will support automotive manufacturers and suppliers across the North East in funding bespoke tooling.

“With end production sometimes not occurring until 12-24 months after tooling requirements are identified, cashflow pressures can affect working capital. Tooling finance can help alleviate that pressure.

“Manufacturing has never been more important to the success and growth of the North East’s economy, with the automotive industry representing about eight per cent of UK manufacturing output.”

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