Exploring finance solutions for manufacturers beyond traditional loans

Manufacturers should continue to look at the opportunities for investment despite the challenging economic conditions, writes Steve Grice, midlands area manager for business investment specialist UKSE.

The impact of increases to tariffs in the US by President Donald Trump has caused deep concerns for manufacturers, who play a significant role in the economy of Birmingham and the wider West Midlands.

Nationally, half of respondents to a recent CBI quarterly Industrial Trends Survey cited political or economic conditions abroad as a factor likely to limit their export orders, the highest proportion since April 2021.

Manufacturers should not be deterred from looking at opportunities, says Steve, whether they are looking to scale their operations, invest in new staff or acquire a new business.

Alternative lenders can play a pivotal role in bolstering the UK's manufacturing sector, particularly for small and medium-sized enterprises (SMEs) that often face challenges accessing traditional bank financing.

By offering flexible, tailored financial solutions, these lenders can help manufacturers navigate economic uncertainties, invest in innovation and enhance productivity.

Alternative lenders often have more flexible lending criteria compared to traditional banks, making finance more accessible to a broader range of manufacturers. This inclusivity is crucial for SMEs, which may lack extensive credit histories or collateral.

By understanding industry-specific needs, experienced lenders like UKSE can offer customised financing solutions that support manufacturers' growth trajectories.

UKSE offers strategic loan and equity packages of up to £1m to generate growth, create local job opportunities and bolster the economy.

Based in Cannock, our West Midlands team supports firms across Birmingham, the Black Country, Coventry, Staffordshire and Telford wanting to grow, innovate and bring employment opportunities to the West Midlands region.

UKSE has a strong heritage in manufacturing, so we understand the unique challenges of the sector – from rising energy costs to labour shortages, supply chain disruptions and the need to adapt to technological advancements.

We have provided investment to manufacturers in a range of scenarios, supporting them with management buyouts, investment in new technology, expansion into new markets, relocations and growing their workforce.

With a focus on cashflow lending, our approach is different to many lenders who offer traditional loans that rely heavily on assets or credit history. We take the time to understand manufacturers’ long-term goals and investment plans by visiting them in person and seek to support them throughout our funding relationships.

We prioritise affordability, transparent terms and conditions and support for borrowers if they do face repayment difficulties.

UKSE provides not only loan funding but equity funding, which enables us to build a deeper relationship with manufacturers. When we take a minority stake in a business we become a strategic partner, bringing a wealth of industrial knowledge and experience that can be particularly beneficial to companies undergoing growth or restructuring.

With a focus on providing patient capital, we focus on sustainable growth and long-term value creation rather than quick profits. We make equity investments to back strong management teams, ensuring they stay in control of the business, and we offer a flexible exit policy.

We also offer unsecured loans up to £200,000, often without the need for personal guarantees.

Alternative lenders play an instrumental role in supporting the UK's manufacturing sector by offering flexible, tailored financing solutions that address industry-specific challenges.

As the manufacturing sector continues to navigate economic uncertainties and pursue modernisation, they will remain key partners in driving resilience and competitiveness.

We want businesses to know there is help out there for them, no matter how challenging things may appear.

Click here to find out more about UKSE.

Pictured from left to right: Steve Grice and regional executive MikeLowe