Businesses in the automotive supply chain that need to invest in bespoke tools to complete contracts can now get specialist support from a new product launched by Lloyds Bank Commercial Banking.
Tooling Finance is tailored to manufacturers with a proven track record in the automotive supply chain, and provides up to 90 per cent of the project cost upfront, with typical terms of up to 24 months.
By freeing up cash that would otherwise be tied up in machinery, the system aims to take the pressure off working capital and has been developed specifically to back more than 2,000 businesses in the UK automotive supply chain.
Dave Atkinson, UK head of manufacturing for SME at Lloyds Bank Commercial Banking, said: 'We have a deep understanding of automotive manufacturing and know that the UK is one of the most attrac-tive locations for investment in the sector. As a result, our clients through the supply chain are seeing increasing opportunities for growth.
'To help them, we have developed a tooling finance solution that will support automotive manufac-turers and suppliers in funding bespoke tooling.
'With end production sometimes not occurring until 12-24 months after tooling requirements are iden-tified, cashflow pressures can affect working capital. Tooling finance can help alleviate that pressure.'
