Loans Fund Supports Bussiness Growth

The Croydon Enterprise Loan Fund came to the rescue when entrepreneur Mark Carruthers saw his dreams of expanding his business falter as his bank withdrew lending at the height of the credit crunch.

Mark, who has successfully run a hardware store in New Addington for more than 12 years, had been inspired to set up a new businesses tendering for building services, repair and maintenance contracts after hearing more and more of his tradesmen customers complain that the recession was affecting work. Mark believed he could support them by securing new contracts and doing the project management, while employing trusted local tradesmen to carry out the specialist work.

But just as he was about to get his new business idea off the ground, he received the shock news that his bank was withdrawing lending facilities on his account for his existing business, The Warehouse shop in New Addington.

"I just didn't understand why. Our credit rating was good, the business was strong with good turnover and footfall, but I went overnight from a successful business with a safety net to one where I may be facing making people redundant," said Mark."The bank just wasn't willing to provide support, so the new business idea would have had to go on hold, while I focused on my existing business to keep it afloat.

"Luckily my district centre manager, Ken Sherwood, helped me out, advising me how to apply for a loan from The Croydon Enterprise Loan Fund. I'd been helped a lot over the years by Croydon Enterprise with business advice, but this really made a big difference as it gave me the opportunity to maintain the business I already had and simultaneously expand the new company."

Following a presentation to the Croydon Enterprise Loan Fund panel, Mark was successful in gaining the requested £10,000 fund towards supporting the refurbishment of his shop, The Warehouse in New Addington.
And with The Warehouse's finances secured, Mark was able to turn his attention to his new enterprise, H&T Services, which has now secured contracts in Crystal Palace and New Addington.

"There wouldn't be an H&T Services without Croydon Enterprise," said Mark. "The business support and advice I've received over the long term helped me have the initial idea and draw up a good business plan, and then the loan ensured that the credit crunch didn?t put paid to the idea before it got off the ground."

Mark, whose shop The Warehouse won him Best Local Trader in the Borough Best of Business Awards in 2008, was supported by his district centre manager, Ken Sherwood OBE, in his application to the Croydon Enterprise Loan Fund, which is aimed at businesses who are finding it hard to get loans from mainstream sources. The Loan Fund has supported nearly 50 businesses since it launched in early 2008.

For more information, call the Croydon Enterprise Business Hotline on 020 8680 6161. 

The loan fund forms part of Croydon's Economic Recovery Plan which aims to help local people and businesses survive the recession. The plan was drawn up earlier this year by Croydon Council and Croydon Economic Development Company (then Croydon Business) in partnership with a range of key agencies, including South London Business, Croydon College, JobCentre Plus, Croydon Enterprise, Envibe, Safer Croydon, Croydon  Business Venture, Business Link, and Croydon Voluntary Action. The plan is currently being led by the new Croydon Economic Development Company.