In 2014 Finance Birmingham launched the £24m National Tooling Loan Fund, created to help component manufacturers and toolmakers, based anywhere in England, to finance the manufacture of tooling. Funded jointly by £12m from the Governments Regional Growth Fund and £12m from the private sector, the Tooling Funding Programme offers loan funding to support the design, development and manufacture of tooling across any sector. By supporting the growth potential of national tooling businesses, Finance Birmingham are helping supply chains across England to take advantage of new business opportunities and create jobs.
The fund aims to support those manufacturing businesses in the supply chain that have received an enquiry/order originated by an Original Equipment Manufacturer (OEM) or a ‘Prime’, either directly from that OEM/Prime or from a Tier 1, Tier 2 etc company within that supply chain. In many cases the requirement will be to fund the tooling necessary to make component parts which will feature as part of a larger sub-assembly to be provided to the OEM/Prime. However this Funding Programme is not exclusive to the Automotive sector and consideration will be given to any funding request for tooling where there is an order for the part to be manufactured.
The timeline between when an OEM/Prime places its order for a part (and thus triggers the need for tooling to be manufactured) to when they finally pay for it can be up to 24 months and this can have a significant impact on the level of working capital within the business. Some businesses cannot make this commitment from their own resources and the Tooling Funding Programme looks to ‘bridge’ this working capital need.
Applicants wishing to apply should first read the “Application Guidance Notes”, which can be downloaded from the link below.
Following that an “Expression of Interest” form should be completed and sent to SteveHetherington@FinanceBirmingham.com
Once an EOI form has been submitted, a member of the Finance Birmingham will review the information and will contact you regarding the next steps of the application process.
For more information about the Tooling Fund or to enquire about the application process call Steve Hetherington or Marie Kelly on 0121 233 4903 or email SteveHetherington@FinanceBirmingham.com or MarieKelly@FinanceBirmingham.com.