New funding route reshapes deal execution in the Midlands

Arbuthnot Banking Group

The Midlands remains one of the UK’s most concentrated centres for engineering, manufacturing, and logistics.

Through the government’s Growth Guarantee Scheme, businesses can now access up to £2 million in debt with a 70 % government guarantee. But the real unlock is how this integrates with asset-based lending. By combining stock, receivables, or machinery as collateral with a cashflow facility backed by the guarantee, businesses are structuring finance that moves faster and holds less friction at board level.

Buyers with capital are not in short supply. The bottleneck has often been execution, particularly in regional markets where local conditions matter. The combination of embedded financial partners and government-backed structures offers a differentiator that’s difficult to replicate.

Private equity, in particular, stands to benefit. As dry powder competes for quality mid-sized assets, the firms able to align with fast-moving operators will be better placed. This is especially true where internal ownership transitions are time-sensitive or where working capital alone cannot support strategic moves.

Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.

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