The Black Country Reinvestment Society has joined forces with HSBC and MGI Wenham Major to clinch funding for the growth of Wolverhampton company Chamber Channel TV.
Paul Kalinauckas, chief executive of the Dudley-based society, said, "We have been able to broker a supportive deal with HSBC, to ensure that Chamber Channel TV has the right level of finance to grow their business.
"BCRS has different criteria in the way we assess our clients and are not tied to conventional banking methods.
"We look for entrepreneurs in the Black Country who have got what it takes to build a business and to be successful, but who perhaps haven't got sufficient working capital to develop their business further; Chamber Channel TV are a perfect illustration of this.
"Often many small businesses need equity investment. It can be quite difficult to get small amounts of finance. For small loan finance a loan of up to £50,000 can be all a business needs to get going, to develop the idea further and to stop going bump in the crucial stages."
Managing director Richard Westhead formed Chamber Channel TV in 2004, with the purpose of supplying digital networked media screens to the four Black Country Chamber of Commerce offices across the region.
The screens provided an opportunity for businesses to advertise in the reception areas of each chamber.
In addition to advertising and information, the screens also run BBC News 24 continuously.
"As cost was an issue, we took a commercial risk and supplied all of the Chamber's screens for free in order to launch the concept" said Mr Westhead.
"My business had already launched Restaurant TV, Racecourse TV and Science Park TV, and as members of the chamber of commerce we were keen to get them on board.
"We all realised the business-to business potential of Chamber Channel TV so we spent another £40,000 on new and better screens from our supplier Nexus.
"Now, our customers host the screens themselves, for free, by subscribing to the channel for one year. The screens operate as a live information system and all adverts are networked to 100 screens, and are viewed by approximately 100,000 people a week. At a cost of £295 per month for a ten second advert, it's a very cost effective medium.
"BCRS became customers of ours after we met with Paul Kalinauckas when we first launched the screens.
"When we were looking for £250,000 finance to grow the business to the next stage HSBC were very interested in helping us with part of our requirement.
"We then approached BCRS, who already understood and had faith in the concept, and Wenham Major, who I had worked with before. By working together, we have secured debt funding of £50,000 from BCRS and £110,000 from HSBC."
Paul Kalinauckas said: "BCRS was attracted to Chamber TV initially because we like the sector.
"The Black Country has a real mix of industries, and we are keen to support emerging technologies. It's important for us to have a mixed portfolio and Chamber Channel TV is an extranet concept, it has intellectual property, which is very important when bringing a concept to market, and we believe it has the ability to be a high-growth company.
"I'm impressed with Richard; he has something that is essential when bringing a company to market in the early stages - he can sell. He has a demonstrable track record, but he hasn't been able to secure the finance before that would enable him to get his business to the next step - BCRS and HSBC are helping him make that happen."
Scott Green, of Birmingham-based accountants and business advisors Wenham Major said, "A concept such as Chamber Channel TV is difficult to sell to a bank.
"There are a lot of different income streams concerned and it's a niche business. But Wenham Major took a look and liked it immediately. Richard is successful in everything he does and he's passionate, a vital ingredient in driving the business forward."
John Kitson of HSBC also said: "We were intrigued, and after looking at the business plan and seeing that there was already an income stream, we saw there was a deal to be done.
"Chamber Channel TV was an established, viable business and was generating cash, but needed more money to make the business grow faster.
"We were able to lend against further cash flow. HSBC are interested in viable propositions, where clients have money invested in their businesses. We have money to lend and are keen to support them, and are happy to be involved in a joint deal with BCRS."
Richard Westhead continued: "This is far from being an overnight success.
"I put over £100,000 of my personal money and many successful years of experience in media publishing into setting up Chamber Channel TV and I'm passionate about its future. Thanks to BCRS and HSBC and with the support of Wenham Major the business is on course to double in size in the coming year."