NatWest and RBS launch £25m of tooling funding

The banks, which claim to be the first to offer bespoke tooling finance, said they had done so in response to the "urgent need for funding assistance which has been raised by the UK Automotive Council". Mark Eastwood (pictured), head of manufacturing for SMEs at NatWest and RBS, said: "The UK economy and automotive supply chain currently risk losing valuable orders and opportunities for job creation. UK automotive suppliers have identified the inability to fund the bespoke tools required to complete specific contracts, as a very significant factor restricting cash flow." The cost of tooling can range from £30,000 to more than £1m and the funding period is typically 18-36 months. NatWest and RBS estimated that UK-based car manufacturers require tooling from suppliers to the tune of £500m. They added: "With UK vehicle production expected to increase from 1.5m to 2.2m units by 2016, the automotive industry has already been identified as extremely important to the UK and its exporting ambitions. Not only that, but around 2,350 UK companies regard themselves as 'automotive' suppliers, employing around 82,000 people." Eastwood added: "This is really beneficial for the full supply chain and I am delighted we are able to extend our support for SMEs in dealing with tooling requests. "Automotives are one of the UK's biggest export industries and therefore this sector is extremely important to the UK economy. The launch of specific Tooling Finance funding from RBS is a great example of what can result from the unique partnership between industry, RBS and BIS. In this instance the bank has come up with a solution to help the UK's pressurised supply chain and, in turn, the UK economy."