Funding goes ahead to support centre
Nursery turns to LendingCrowd after bank rejection
We Care for Children, which operates the Little Flyer’s Nursery, will use the funds raised to open a facility in West Lothian.
It will add to its portfolio of six in the Edinburgh and Lothian area which cater for more than 300 children.
Sharon Fairley, the owner and managing director of the nursery group, turned to alternative finance to support her plans.
“When the banks are consistently refusing to provide you with a loan, you start to doubt your business and your ambitions for it to grow and succeed.
“Thankfully LendingCrowd shared my vision, enthusiasm and belief in the project and have been fantastic in helping to make my pitch to potential investors and provide the tailored information that they really needed,” she said.
Securing its loan target in eight weeks, We Care for Children has been able to use the funds refurbish the building and take on three members of staff, with the aim of employing 15.
Stuart Lunn, chief executive of LendingCrowd, said: “We Care for Children’s experience goes to show how vital crowdlending can be to an increasing number of SMEs across the country, especially those which operate in sectors that have specialised borrowing requirements.
“Just because a company does not fit the standard template often required to secure bank funding it should not mean their ambitions to grow as a business are thwarted.
“There are lots of enthusiastic investors out there who are keen to back companies like We Care for Children, and we believe flexible and well-regulated crowdlending can help support a successful base of SMEs that can go on to make a valuable contribution to the economy.”
Mr Lunn recently appealed for more investors to provide funds to meet demand for LendingCrowd’s loans. It has financed 35 deals in the past year but he disclosed to Daily Business that the company had turned away 20 acceptable applications in the past year because of a lack of available funds.