GCBF and River Capital drive North West growth with over £1m NPIF II investment boost

GC Business Finance (GCBF) and River Capital have provided £1.4m worth of funding to 23 businesses through the Northern Powerhouse Investment Fund II (NPIF II) following its launch in March 2024. The funding comes from NPIF II - GC Business Finance & River Capital Smaller Loans, which is managed by the consortium as part of NPIF II.

Businesses that have secured funding are from a variety of sectors and localities in the North West, from retailers and technology innovators to speciality cafes, and range from new businesses seeking their first loan, through to more established businesses seeking growth capital.

Birkenhead-based domiciliary care company, House of Care, secured a £25,000 NPIF II funding package in what was one of the first NPIF II deals in the Liverpool City Region. The investment will support its expansion plans, enabling it to take on additional contracts and create jobs in the region.

Manchester-based cafe, Black Milk, also secured NPIF II funding. Black Milk started out as a milkshake and cereal café, selling baked goods, and has since expanded its product offering to include pancakes, gelato and more. It will use the funding to support its future growth, and has recently secured a contract with Selfridges.

Preston-based Private Ambulance Service, a dedicated collection and delivery service of the deceased, secured £25,000 from NPIF II. An early stage business that required crucial working capital to support its expansion plans, investing £5,000 in new equipment. It will use the additional funding to grow its fleet and enhance its website, fund an advanced IT booking system, and provide direct cremation guidance.

Lymm-based Tilly and Ted Homeware, an online, high-end homeware store, secured £55,000 from NPIF II, following 53 per cent year on year growth in turnover. The funding will help to scale the business, increase profit margins, hire a part time team member, and eventually expand its product offering to an international market.

Andy Nichols, Investment Manager at GC Business Finance, said: “The NPIF II smaller loans funding is crucial for businesses looking to secure £25k to £100k worth of funding to support growth. Alongside River Capital, we have supported some brilliant businesses in the North West.

“From supporting Black Milk to purchase and supply stock to fulfil orders placed by high street retailers, to backing Tilly and Ted as it sets out to conquer international markets, it is amazing to have provided over £1m worth of funding to support the North West’s growing businesses. The North West is home to some incredible businesses, and we can’t wait to work with even more in the months and years ahead.”

John Gray, Head of Debt at River Capital, said: “After working with GCBF on the first Northern Powerhouse Investment Fund, which delivered £13.5m of funding to businesses, it has been great to partner once again to support with the provision of NPIF II, having already provided over £1m of smaller loans to North West-based businesses through the fund.

“We have worked to reach even further afield, targeting businesses in hard-to-reach areas like Cumbria, ensuring that NPIF II is reaching the whole of the North West. It has been a delight to support a wide range of businesses, helping the likes of House of Care and Private Ambulance Service as they go through exciting periods of growth. We look forward to working with these businesses more closely in the coming months, as well as hearing from new businesses seeking finance.”

Sue Barnard, senior investment manager, at the British Business Bank, said: “Almost a year on from its launch, it is brilliant to see such a range of businesses driving their growth with the support of NPIF II funding. After GCBF and River Capital’s success through the first NPIF, it’s great to see the consortium continue, and the £1m+ they have provided through smaller loans so far has been transformational for these local businesses. We look forward to seeing how they continue to support the North West, ensuring that businesses across the region, including those in harder-to-reach communities, can secure the funding they need to grow.”

The £660m Northern Powerhouse Investment Fund II (NPIF II) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.