Member Article

More money for mojitos!

How cocktail companies and metal manufacturers are getting access to finance

Mark Hodgkinson and Scott McComiskie were backpacking around Australia when they landed jobs in a Sydney bar and learnt to mix cocktails and perform tricks.

Back home the friends realised there was a demand for mobile cocktail bars, with experienced staff, and that they were ideally placed to meet it.

So Mojito Events was born. Four years on the business is flourishing, and now also offers events packages, entertainers, photo booths and furniture hire.

“We have so many ideas for the business and want to get moving on them straight away,” says Mark. But the pair needed some financial help to turn the ideas into reality and expand their offering. They found Aston Reinvestment Trust (ART) on the internet and took a loan from them to move forward with Mojito Events.

Mark adds: “We have used a loan from them to help us buy and fit out more bars in different styles and to buy some designer event furniture. Eventually we want to be able to offer everything an event organiser needs.”

Henshaw Manufacturing also turned to ART for a loan when its cash flow was stretched. The company was established by current owner Roger Weeks’ grandfather in 1930. Over the years it has produced a wide range of items from sheet metal– including fishing rods, bread bins, parts for motor bikes, toilet roll holders and cigarette bins.

Like most manufacturers, Henshaw Manufacturing operates with tight margins.

So when its roof started leaking, a machine broke down and one of its biggest customers went into administration at the same time, cash flow became rather strained. Henshaw also received a loan from ART to ensure the business survived this challenging period.

“It’s good to know that a lender like ART exists for those tricky times when something exceptional happens” says Roger. “They understand small businesses.”

These loans were made possible through a new funding partnership, brought together by lending trade body Community Development Finance Association. It brings together government cash from the Regional Growth Fund and loans from Unity Trust Bank and Co-operative Bank. And thanks to new funding announced last week, the total funding pot is £72million.

Lenders like ART are using the money to help hundreds of small businesses. From Cumbria to Norfolk, Hastings to Bradford the lending is starting to get where it’s most needed. The programme was launched in October last year by Vince Cable and it has already created and saved over a thousand jobs.

It’s doing exactly what the government wanted from its RGF programme. Bringing private and public money together to boost jobs and help business growth. And it’s not just a CSR exercise for the ethical banks. They’ve committed serious money to invest in small businesses and local communities – and they’re expecting good returns – both financial and social.

So everyone’s a winner!

This was posted in Bdaily's Members' News section by CDFA (Community Development Finance .