Loans company Black Country Reinvestment Society has helped an electrical company grow its business through the recession.

AGW Electrical (Services), based in Smethwick, provides electrical inspection, installation and maintenance to a variety of UK commercial and industrial clients including Greggs, Subway, Hadley Industries and the University of Birmingham.

The company, founded 11 years ago, borrowed £25,000 from BCRS through the Sandwell Business Loan Fund to aid their cashflow in the recession.

The £750,000 fund offers loans of between £10,000 and £50,000 and is available until 2012 to Sandwell-based viable businesses that are experiencing difficulty accessing finance.

The fund is managed by (Black Country Reinvestment Society) BCRS.

AGW Electrical cofounder and director Adrian Watton said: “Business was slow between March 2009 and June 2010.

“We decided to be proactive and took on marketing manager Wayne Bailey in 2009 to generate new business.

“We also rebranded at the same time. It’s really helped.

“When the work starts to pick up, it’s vital to have the cash to service the order,” said Mr Watton.

“The recession of the previous 18 months had drained our cash reserves.

“We negotiated with our wholesalers to give us longer payment terms, but it’s paying for skilled labour that’s the problem - you need money in the bank to pay salaries.

“We employ ten people, and have subcontractors as direct labour when we need them.