Online retailer ready for growth after receiving BCRS Business Loans funds

An online retailer is preparing for growth thanks to funding from the Community Investment Enterprise Fund delivered by BCRS Business Loans.

Vabe Wholesale Ltd, based at Middlemore Industrial Estate, West Bromwich, is using £50,000 in investment secured from Wolverhampton-based BCRS Business Loans to buy stock and invest in marketing as part of a strategy to increase turnover and profits.

The e-commerce business, which specialises in selling stationery, food and beverages, was launched by Vivian and Aaron Akaforonye in 2020 to capitalise upon the growth in online shopping during the Covid-19 pandemic.

At the time, Vivian was working as a carer while Aaron was employed as a gas engineer. The business has grown to provide the couple with full-time work and Vabe became a limited company in March.

The company was looking for finance for new stock and to invest in its website, to support plans to near double turnover next year.

Vivian said: “We plan to invest the funds in the business, increasing the stock range and creating jobs. We want to reach a stage where our website is popular across the UK, with a lot of people knowing about us and ordering from our business.

“With four children to support, we wanted to launch a new business during the pandemic as we could see how companies selling online were flourishing because of the demand. We have grown to a level where we both work full-time in the business and are investing in our own platform.

“It has been a smooth experience with BCRS Business Loans as they worked with us, supported and guided us until the loan was released. We would recommend BCRS Business Loans as they are always very helpful.”

BCRS Business Loans delivers CIEF loans between £25,000 and £250,000 to SMEs across the Midlands and Wales who are unable to access the finance they need from traditional sources.

Louise Armstrong, Senior Business Development Manager, said: “As a community-based lender BCRS Business Loans with a focus on supporting growing businesses with female leaders, we were pleased to support Vabe Wholesale.

“We look forward to following the progress of Vivian and Aaron as they grow their e-commerce business, providing more employment opportunities in the future.”

Funded by Lloyds and social impact investor Better Society Capital (BSC) with management by responsible finance provider Social Investment Scotland (SIS) the £62m CIEF aims to invest in 800 small businesses nationally and support 10,500 jobs.

The CIEF is also backed by funds from participating community development finance institutions BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise.

Alastair Davis, CEO at Social Investment Scotland, said: “With this backing, Vabe Wholesale can capitalise on the fast growth in demand for e-commerce retail, which helps the West Midlands economy and society. The CIEF helps build growth and generate opportunities by widening access to finance to support small businesses like Vabe Wholesale.”

Vabe Wholesale was introduced to BCRS Business Loans by financial advisers Central Business Finance. Director Alison Bradley said: “We were delighted to connect Vabe Wholesale with BCRS Business Loans, as we could see the potential in their growing e-commerce business.

“Vivian and Aaron have demonstrated real entrepreneurial spirit in building their company from the ground up during challenging times so it is rewarding to see them access the funding they need.”