Norton Motorcycles plans to double its workforce and increase production to 1,000 units a year using the Export Enterprise Finance Guarantee Scheme to secure a £625,000 loan from Santander.
The Business Secretary Vince Cable visited Norton Motorcycles at Donington Park, Derbyshire today to announce the Export Enterprise Finance Guarantee Scheme (ExEFG) loan.
The facility is designed to help companies – specifically small and medium size enterprises (SMEs) – to increase their export market. Mr Cable also met with local councillors and Colin Walton, chairman of Bombardier Transportation UK and the Economic Task Force.
The loan will enable the company to increase production of motorcycles at the factory to 1,000 units per year (from what no. today?). In tandem with this the company will double its workforce from 30 to 60, creating a number of local jobs. The loan is also expected to benefit companies within in the Norton’s supply chain – 80% of them are located in the UK.
“I would encourage all companies to take a closer look at the export financing now on offer that could support their business goals,” said Mr Cable.
The ExEFG was launched by the Government on April 28 to help SMEs increase exports. The scheme is a pilot study and will be reviewed in early 2012.
The main benefit of the loan will be enabling the company to increase the production of motorcycles at the factory to 1,000 units per year. However, in tandem with this the company will double its workforce from 30 to 60. This is expected to benefit the local area by creating a number of jobs, but the loan is also expected to benefit companies within the company’s supply chain – 80% of them are located within the UK.
Under the ExEFG, accredited lenders have the security of a government guarantee, whereby if the company receiving the loan becomes insolvent, 60% of the money lent is then repaid to the lender by the Government. The scheme is designed to reduce risk for both the business and the lender.
Santander is just one of several banks participating in the ExEFG Scheme. Steve Pateman, head of Santander Corporate, Commercial & Business Banking, said: “Schemes like this are invaluable for being able to get smaller exporters at the margins of commercial lending criteria.”
Stuart Garner, CEO of Norton Motorcycles said: “It took two years to actually receive the money, but once we agreed the facility with Santander everything was wrapped up in three to four weeks.”