Alternative finance provider supports Leeds veterinary with expansion plans for 2016

White Cross Vets, the Leeds-based family-run business, is planning to expand to 16 practices by the end of this year, following a 20% year on year growth for four consecutive years.

After securing funding from LDF, the independent provider of alternative finance, White Cross Vets has doubled in size in the last four years.

The business originally opened in 1937, with its first practice in Leeds city centre, and since 2008 has expanded across the North of England and the Midlands.

Jo Jobling, group finance manager, turned to alternative finance options following changes in traditional bank lending, which could have potentially prohibited the business’s growth.

Research conducted by LDF claimed that 50 SME owners/decision makers revealing over half (52%) find UK banks are not business friendly.

Jo said: “When we put our business model to the bank, they loved it but advised they simply couldn’t help us given recent changes in bank lending. Banks are very corporate now, and don’t have the ability to help start-ups and small businesses.

“In 2012 we were introduced to LDF, and since then we have worked in partnership with them to develop White Cross Vets from 9 practices to 16 at the end of the year. They have learnt about our business and in turn, we have learnt about asset finance.

“The funding we received enabled us to open five new practices creating 60 new jobs, as well as the purchase of veterinary equipment such as Digital X-rays and Ultrasound Scanners. We have also recently installed new sound systems that are scientifically designed to reduce stress in cats and dogs – this ‘Meaow-sic’ is a real hit with patients and their owners.”

The SME research by LDF also shows over half (53%) of Leeds businesses have borrowed an average of £75,479 in order to grow their business over the past 12 months, including new city-centre restaurant Riccis Tapas and Cicchetti, which received funding from LDF when it decided to expand to Leeds city centre.

Michael Ricci, director of Riccis Group, added: “While we were expanding, the funding from LDF allowed us to free up cash flow to allow extra breathing space when finances are crucial. We found it an easy and accessible way to aid this transition.

“We are aware that the concept of business borrowing money has developed negative connotations and people see this as a sign of a struggling business, but it has been instrumental in the development of our business in order to grow. Business is booming at our Leeds restaurant and we’re looking forward to opening our next site already.”

Peter Alderson, managing director of alternate finance provider LDF, commented: “Over 99% of private sector firms in the UK are made up by small to medium-sized businesses and whilst this sector is clearly thriving, our survey sheds light on the harsh financial realities faced by start-ups and established businesses alike.

“We enjoy working with long standing family businesses like White Cross Vets, as well as helping businesses like Riccis to expand to new locations. We understand the challenges that these businesses face with the current financial system, lending should be seen as a helping hand rather than a negative reflection on the SMEs.”