Devon independent builders merchant Tinhay Building Supplies has opened its third branch in just 12 years.
Directors Robert Sorrell and Paul Davies started the business in Lifton, adding a second branch in Launceston, Cornwall. The third branch is on Pixon Lane in Tavistock.
Sorrell said: “The only way businesses will succeed in the current economic environment is by investing. You will not prosper if you simply focus on cost cutting, but if you look at cost management, you will reap the rewards.
“People in the building trade are busy and need good and prompt service with expert advice as well as competitive prices. The current economic downturn has meant people are investing in their properties, rather than selling them and this means that customers are spending money on maintaining and improving their homes, and as such coming to Tinhay Building Supplies to help them to do that.
“As an independent and local business we are also benefiting from the increasing cynicism and mistrust people have for big brand name companies, who often put the needs of shareholders before the needs of customers.”
The third branch represents an investment of £250,000 and the directors hope to see a 25% increase in sales in the first year. It was funded thanks to backing from an Enterprise Finance Guarantee backed loan (EFG).
The EFG scheme was set up under the Labour Government to encourage banks to lend to small businesses. As the government guarantees 75% of the loan, lenders including the main high street banks, see the loan as a less of a risk. Last year the Lib/Con Coalition announced that the Enterprise Finance Guarantee scheme will continue until 2014 and during that time it is aiming to free up £2bn of lending for around 6,000 companies.