Success Story
| Region/Nation | Yorkshire and Humber |
|---|---|
| Programme | Bounce Back Loan Scheme (BBLS) |
| Partner |
When this bakery and workers’ co-operative paused its trading to protect staff and the local community during the pandemic, it used the downtime that closure afforded to reassess its priorities. However, knowing that its diminished revenue couldn’t cover its ongoing overheads, the business applied for funding via the Bounce Back Loan Scheme (BBLS) to provide some much-needed cashflow.
Read what it had to say in this BBLS case study.
British Business Bank: Can you tell us what your organisation does?
Lizzie Fellows, co-op member of Leeds Community Bakery: We are a small sourdough bakery/workers co-op based in Leeds. We are passionate about sourdough and slowly fermented breads. Using organic, locally-sourced ingredients, we bake bread for delivery and to buy at local markets and our bakery shop.
How did COVID-19 affect your business, and why did this mean you needed funding?
We had a massive drop in sales from our wholesale customers – they make up 75% of our income and most had to close because of government restrictions in the spring of 2020. We decided to pause trading for the safety of our staff and local community and to give ourselves some breathing space while we did some urgent financial modelling and collective decision-making about our priorities.
As we began trading again, our sales levels were a fraction of what they were before lockdown and we were very unsure about the level to which they would increase. With overheads still to pay and the uncertainty of the months ahead, we chose to apply for a Bounce Back Loan to give us some buffer and ensure we had enough money in the bank to help us through the year while we assessed and planned for what the future of our business may look like.
How did you find the application process?
It was simpler and quicker than we expected for a government-backed scheme. It took no more than an hour to complete the application form and we didn’t need any support. The turnaround time for the loan being approved and receiving the money was also really quick, which gave us much-needed reassurance at a critical time.
We went through The Co-operative Bank, of whom we’re an existing customer, and our application was handled quickly and without any issues.
We’d encourage other co-operatives to apply for the Bounce Back Loan Scheme as it’s well designed for small businesses/enterprises without being overly complicated or daunting. Having the money in the bank and knowing there is cash on hand to help us through such difficult times is a big relief. - Lizzie Fellows co-op member of Leeds Community Bakery
What do you think would have happened to your business if your application hadn’t been approved?
It’s likely we would have hit a cashflow problem and gone out of business.
Can you provide a specific example of how you used the funding to bring about a positive change (or changes) to your business?
Having the funding in the bank meant that we could pay wages and our suppliers without a problem, and not have too much worry about cashflow. As a result, we’ve been able to focus on responding to the pandemic, both by creating a safer and more flexible workplace in which we could continue to trade, and also by providing bread for emergency food parcels for our local community through our Loaves for Leeds project.
What advice would you give to other businesses that are applying for a Bounce Back Loan?
We’d encourage other co-operatives to apply for the Bounce Back Loan Scheme as it’s well designed for small businesses/enterprises without being overly complicated or daunting. Having the money in the bank and knowing there is cash on hand to help us through such difficult times is a big relief.
In what way did the Bounce Back Loan Scheme mean your business could survive?
We’ve been able to make some substantial changes to the way we operate, to our structure and to staff roles. That’s allowed us to create a safer, more flexible, sustainable and co-operative business, without the worry of running out of cash in the short or medium term. If we didn’t have the money, we probably would have been so tight on cash that we wouldn’t have been able to take the decisions or make the changes that we needed to, to get us to a more sustainable and resilient position for the longer term.
Find out more about Leeds Community Bakery (Leeds Bread Co-op)
Quick links
More success stories
Read a success story about Ruuby
An on-demand beauty marketplace, which allows customers to order a host of beauty services to their desired location, has raised £2m to accelerate its growth in the North West by doubling down on its existing operations in Manchester and Liverpool.
Read a success story about Power Roll
Based in Murton, Power Roll, a pioneer in the solar energy transition, has raised £4.3 million in its most recent funding round, including £1.5 million from NPIF II – Maven Equity Finance, which is managed by Maven Capital Partners as part of the Northern Powerhouse Investment Fund II.
Read a success story about Xentra
A fast-growing Leeds cybersecurity company secured a six-figure loan from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).