Milton Keynes-based used car retailer CarOOn in preparing to create 40 new jobs with a business expansion funded by £800,000 in new funding backed by the Recovery Loan Scheme.
Finance Giant Ltd, trading as CarOOn, plans to train new staff and expand its used car stock to over 1,000 vehicles after it secured the loan from the Midlands Engine Investment Fund (MEIF) provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.
Chief executive Syed Khusro Kamal said: “We are very pleased to be supported by MEIF at this crucial juncture, allowing us to expand quickly to capitalise on the current demand for second-hand cars, particularly considering the shortage of new cars caused by the pandemic.
“This loan allows us to recruit and train new staff and once they are in position we will be able to grow our site to its capacity of 1,000 cars. In addition, we will continue to invest in the development of our technology, which is vital to us staying ahead as an online business.”
CarOOn, located in the former Saxon Bridge Car Superstore on Auckland Park, Bletchley, claims to have developed an intuitive platform that allows vehicles to be sold and delivered to a customer within a day, in co-ordination with its on-site vehicle preparation facilities.
The business remains connected to its buyers with a customer loyalty rewards app accompanying its end-to-end digital journey.
Ann Marie McFadyen, Investment Manager at The FSE Group which manages the MEIF Debt Finance Fund on behalf of British Business Bank, said: “Syed has built a robust management team and has strong plans for future growth, including a second site and in-house logistics.
“With a flexible business model that can adapt quickly to market changes and trends, the business is in a forward position to capitalise on the expanding used car market and we look forward to working with them to support their growth.”
The Midlands Engine Investment Fund is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.
Lewis Stringer Senior Manager, UKN at the British Business Bank, said: “The MEIF has always supported innovative businesses in the Midlands to invest in technology to enable growth in both new and existing industry sectors.
“As is the case with CarOOn, significant job creation often follows such investment. We would encourage other SMEs looking to grow to consider the options available through the MEIF.”