EXPANSION into the North East is the next stage of development for a Bradford-based social enterprise which has been providing a financial lifeline to new and emerging businesses turned down by banks for the past decade.

The Business Enterprise Fund, an EU-backed social enterprise whose support for fledgling businesses has helped create more than 1,000 jobs in the region, has marked its 10th anniversary by confirming plans to establish its latest office in Stockton-on-Tees in a further geographical expansion of its operations.

It will be the fourth BEF base in addition to Bradford, Leeds and York.

Since 2004, BEF has supported more than 2,000 businesses in West and North Yorkshire which were unable to raise finance from mainstream lenders and high street banks.

In its first decade, BEF has loaned a total of £12 million to companies, half of which has been in the last three years.

Fund director Stephen Waud said: “Alternative finance is fast becoming a mainstream option for businesses and as demand continues to soar, providers such as BEF are becoming a first choice for new and existing business owners. This demand for our services has seen us loan £4 million across West and North Yorkshire in the last 12 months.

“Our York team has thrived on supporting businesses across North Yorkshire in the six months since the office opened. We’ve every expectation that Stockton-on-Tees will continue the success of what is clearly a much needed financial service that is fuelling the regional economy, creating jobs and breathing new life and longevity into businesses.”

BEF, which has a team of nine investment managers has strong relationships with clients with many returning for top-up loans in order to develop their businesses further.

“Our expansion into the North East is further testament that we are providing a lifeline for businesses in need of financial help and we’re looking forward to supporting more companies ,” added Stephen.

Among local firms helped by BEF is Bingley-based Wildacre Cosmetics which approached the fund in 2010 with a comprehensive launch plan. Founders Steve Richardson and Steve Meredith had enough funds to cover the capital equipment needs but required a further loan for material stocks and working capital.

Turned away by the banks, Wildacre secured a £50,000 BEF loan which allowed it to open its doors for trade within four months. Just under three years later, Wildacre passed the £1 million turnover mark and moved into bigger premises at a new factory in Bingley.

The company now employs 28 people, has quadrupled the number of clients since its launch and is able to invest in further business development .

Keighley-based C&C Hydraulics approached BEF for additional funds on top of other lending to buy new machinery.

BEF filled the company’s funding gap to alleviate a cash flow problem, enabling the business to continue providing hydraulic cylinder products and hydraulic equipment throughout the UK and internationally.

C&C Hydraulics, run by husband and wife Ian and Lorraine Couch, who launched the business in 1994, is continuing to build its customer base to develop the business further. Growing demand for its products enabled the firm, which started in a bedroom, to move into a larger £1.5 million base at Aireside Business Park in 2012.

Last year BEF opened the City Hub flexible office building in Little Germany, aimed at the financial and professional services sector.

City Hub, based in a converted wool warehouse cost £1.8 million with support from the European Regional Development Fund and provides an “enterprise incubator” with 19 offices and support services for up-and-coming businesses. BEF director Stephen sees it as a key achievement for the organisation. City Hub is now fully occupied.

BEF, which provides loans between £500 and £150,000, is a subsidiary of Bradford Chamber of Commerce. It has grown into one of the UK’s leading Community Development Finance Institutions as its influence has grown.

Stephen said: “We are regularly consulted by government and other agencies and I spend a lot of time lobbying. We advised Goldman Sachs on its 10,000 Small Businesses project to help entrepreneurs create jobs and economic opportunity by providing greater access to education, capital and business support.

“Basically, BEF is a lending operation, but our mission is also to influence and help change the landscape of financial exclusion. Many of the businesses we are supporting are run by previously unemployed people. Our support has helped them to realise their ambitions, giving them hope for the future.”