Paragon Bank has provided a £130,000 Coronavirus Business Interruption Loan (CBILS) loan to Worcester-based engineering firm, GDK Engineering Company Ltd.
GDK is a subcontract engineering firm, based in Worcester, specialising in low volume production of machined products.
GDK approached Paragon for support when demand for their services dropped as the pandemic impacted the business’ three major customers.
This meant that GDK rapidly ran out of work, which hit turnover.
Paragon said it originally provided GDK with a payment holiday on existing loans and invoice discounting fees during the early stages of the coronavirus pandemic.
The challenger bank added that it was also able to provide a flexible approach to funding production, by providing finance against completed work being held pending delivery to the end customer.
GDK produces worm drive slewing rings and gearboxes and designs products to the requirements of each customer.
Stuart Easthope, director at GDK, said: “It’s hard to speculate as to how the manufacturing economy will recover or what the traditional trades will look [after Covid-19], so times remain uncertain.”
Adrian Taylor, head of invoice finance at Paragon, said: “We pride ourselves on offering a flexible service and treating our customers fairly, so we are really pleased that we were able to be a further arm of support for GDK when difficult times hit.”