Century-old Cross + Morse secures growth funding

Cross + Morse, a Birmingham engineering company that has been trading for 100 years, has secured a new growth funding package to support its next stage of development.

The company, which specialises in power transmission, has agreed a tailored package with Arbuthnot Commercial Asset Based Lending.

What the company does

Power transmission is the engineering of the parts that carry power from a motor or engine to the machinery it drives. It includes chains, sprockets, gears, couplings and clutches, which are used in everything from factory production lines and farm machinery to lifts and packaging equipment.

Cross + Morse provides engineering, manufacturing and distribution services from a 5,000 square metre factory in Birmingham. It is owned by Astwood Group.

How asset based lending works

Asset based lending allows a business to borrow money against the value of what it owns, such as unpaid invoices, stock and machinery. It is often used by manufacturers that have valuable assets but need cash to fund growth, new equipment or larger orders.

A hundred years of making things

Few businesses reach their centenary. Cross + Morse was founded in the 1920s, when Birmingham was one of the world's great engineering cities, known as the city of a thousand trades. Many of the firms from that era have disappeared, but a core of specialist manufacturers has survived by focusing on skilled work and serving particular industries.

Manufacturing in the city today

Manufacturing remains an important employer in Birmingham, especially in automotive supply chains, aerospace, rail and food. Local firms have faced higher energy costs this year as the war involving Iran has pushed up prices, and many are looking at automation and new equipment to stay competitive.

Access to finance is often one of the biggest barriers to growth for smaller manufacturers, which is why specialist lenders have become an important part of the market.