Cable company ties up loose ends to complete business loan
A Humberside electrical business is hoping to make connections with new businesses after securing a loan from Finance Yorkshire.
Fibre optic specialist and data cabling installer, Electrastar Ltd, is addressing the national demand for high speed internet to help move Britain to the forefront of digital enterprise.
In one of Finance Yorkshire’s first investments in Hull, the company has secured a £25,000 business loan.
Electrastar, based in the Louis Pearlman Centre, will use the money to buy new and maintain current equipment which also helps the business carry out fibre optic termination and testing services for various media in a wide range of environments such as CCTV, motorway communications, large display screens and computer networks.
Electrastar was set up in 2004 by the three directors, Rob Dixon, Lee Harrison and Brendon Jackson.
Rob Dixon, Electrastar director, said: “It’s difficult at the moment to secure funding, Finance Yorkshire came at the right time, and without its help we wouldn’t have the money to improve our equipment.
“This loan will give our kit a new lease of life and buying new tools will expand the types of work we can do.”
The business loans fund will lend £15,000 to £150,000 depending on how established the business is. A business must prove it is profitable and has the potential to grow and also show that conventional sources of funding are not available.
Electrastar had previously received a loan from Partnership Investment Finance (PIF), which enabled the company to buy equipment and win contracts with Manchester United’s Old Trafford Stadium and London 2012.
With Finance Yorkshire now taking on the role of providing gap finance, Rob is hoping the new loan will prove just as fruitful.
Rob said: “More and more places need faster broadband, wireless networks and other communications networks. As systems are upgraded to embrace next generation technologies the demand for Electrastar’s services will only grow.
“In our industry the biggest thing is the cost of the equipment to do the work. As this is such a niche market, kit is rare and comes from all over the world. It can cost between £1,000 to £20,000 and money we have borrowed will be spent on servicing current equipment and buying more so the company can carry on developing.
“We may diversify in the future to stay up to date and now we have the capabilities to do so. Technology is always moving forwards so the worst thing to do in our sector is stay stagnant.
Electrastar are currently installing security measures and CCTV into the new £80m tube system running between London’s Olympic village and the main tube system.
This investment by London 2012 will provide an essential link to Olympic games venues including the Olympic Park.
Ian Atkinson, investment manager at Finance Yorkshire, said: “Electrastar are a sound business helping to drive the country’s digital enterprises forward as well as installing state of the art technology so many every day services and products can operate to a higher standard.
“The business enjoyed a successful partnership with PIF and we’re pleased we can continue the relationship to develop a business with the potential to thrive and possibly increase employment in the area.”
Helping a range of small and medium sized businesses to meet their funding requirements for growth and development, Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m.
The project is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme, £15million from Yorkshire Forward’s Single Programme, and £45million match funding from the European Investment Bank.
For more information about Finance Yorkshire, please visit www.finance-yorkshire.com or ring 0845 649 0000.
Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire