Construction firm Allison Group in Bourne hopes to build its growth on a new £120 million funding deal

A house builder in Bourne has secured £120 million of new funding to power its growth plans.

The Allison Group, which is based in Larkfleet House, in Falcon Way, has just agreed terms on a five-year £100 million Revolving Credit Facility with HSBC and NatWest plus a further £20 million five-year loan from the HSBC bank.

The new credit facility, which allows the firm to borrow the money, repay it and borrow it again, will play a key role as the Allison Group, which aims to build 2,000 homes a year by 2025, invests in new land and development.

The company has also improved payment terms with its suppliers, whose support will be key to the firm hitting its targets, by reducing payment from 45 days to 30 days.

Chief Operating Officer and former Chief Finance Officer Alastair Gordon-Stewart said: “I am very satisfied with the financial firepower the refinancing gives to the Allison Group.

"This builds on our long-standing relationship with HSBC and I am delighted to form a new relationship with NatWest and look forward to working with both lenders into the future.”

John Anderson, chief executive of the Allison Group said: “Refinancing will undoubtedly bring exciting possibilities for Allison Group.

"We’re making significant progress and have excellent ideas in store for our future that will now be viable with the £120 million we’ve secured from HSBC and NatWest.

"We’re continuing to seek new talent, improving payment terms for suppliers, and making great headway towards our goal of building 2,000 homes a year."

"Our growth strategy is being brought to life and we are excited about what the future holds for us.”