A respiratory equipment manufacturer has secured a five-figure investment after finding an alternative lender to the high street banks.
AFP Medical, based in Mill Road, has attracted £65,000 investment to develop the latest version of the company’s medical nebuliser which is now supplied to hospitals and medical practices across the UK.
Following the success of the latest product, it is expected the firm will double its current production of 25,000 units per year within the next 12 months. It is also expected to double its workforce.
The money was raised via a peer-to-peer loan network called Thincats after the firm failed to find a high street bank that would lend at a reasonable rate. Banks have been criticised since the banking crisis began of not freeing up enough cash for smaller businesses.
Richard Mason, director at Ludgate Finance who advised AFP, said: “There is an assumption that if people agree a deal with private investors the rate of interest will be higher than if they had come to an agreement with a mainstream lender. AFP Medical is proof that this is often not the case, especially in these times of economic uncertainty when banks consistently refuse to loosen the purse strings.”