Heating, ventilation and air conditioning provider ICH has secured £2.5m in funding from Independent Growth Finance (IGF).

ICH intends to use the financing to service larger contracts and extend its reach into facilities management compliance testing. The funding is part of ICH’s overall pland for revenues to jump 20 percent from £11.6m in 2018, to £14m by 2020.

Neil Blenkin, managing director of ICH, said: “Large contracts require a substantial amount of working capital to allow for the purchase of materials and labour. Material costs alone can make up over half of the expenses behind contracts worth over £500,000. Alongside that we needed more highly-skilled engineers who could competently take on the complex needs of jobs outside our current scope, supported by an upgrade in technology that would increase efficiency.

“We quickly realised that we were being stifled by inflexible high-street financiers who would not provide the up-front funding to allow us to take on large nationwide contracts and expand into new services. The decision was made to mutually part ways and we searched for a funding provider who not only understood our business’ growth ambitions but backed us fully.”

The funding from IGF follows a meeting between the two companies in June 2018. ICH is also planning development of new offices in Newcastle to support a growing staff base.

Jon Hughes, commercial director for asset based lending at IGF, said: “Sourcing funding for growth is a big decision and companies need to feel that they have the full support of their funding partner. Building strong relationships with our clients is vital. It enables us to understand how we can help them realise their growth ambitions.

“We’re proud to work alongside a company who will do whatever it takes to reach their true potential. With almost 30 years’ experience, unwavering customer service and the right financial support we’re looking forward to a long relationship with Neil and his team as ICH continues to go from strength-to-strength.”

IGF has been funding UK SMEs since 1997, and works with businesses with a turnover of £1m to £100m, predominantly on a secured basis.

Last November IGF provided a £1m (€1.1m) facility to M2C2, a Derbyshire-based clothes distributor.