A Gloucestershire bed manufacturer has been able to tool up and expand thanks to a £184,000 finance boost

The Cotswold Bed Company in Cheltenham has been able to expand and invest thanks to a £184,000 finance boost via the South West Investment Fund and the Community Investment Enterprise Fund.  

Husband-and-wife co-owners Paul and Alejandra Whitelocks have used the money to buy specialist equipment and employ four new staff members in a bid to enhance their bespoke offer to high-end clients.   

The British Business Bank’s £200m South West Investment Fund provided £100,000 with the balance coming from the Community Investment Enterprise Fund, both facilitated by SWIG Finance. The Cotswold Bed Company celebrates its tenth anniversary this year, although between them, Paul and Alejandra have over 60 years’ experience of working in top positions in the industry, supplying companies including M&S and John Lewis. 

“By 2015, we felt it was a good time to do our own thing, in the way we wanted to do it, with high design content and good service,” Paul recalls. “We started online, thinking we could trade off the internet with a little office - but the business just grew.”  

They now have two factories, one for timber work and the other for upholstery, and a showroom near Elkstone. These supply customers worldwide from Saudi Arabia to the south of France, from one-off luxury bespoke pieces to bulk orders for major developments.  

“The market we developed as a bespoke operator meant we needed more sophisticated tooling in our wood mill. This includes a planer thicknesser, enabling us to purchase and get more value out of larger cuts of wood; and a computer-controlled CNC router which can cut more intricate shapes, more quickly.”  

The company was one of the first in Gloucestershire to be certified as a B Corporation, meaning it commits to high standards across worker rights, environmental practices, customer service and community involvement. The expansion has created four new jobs: one in the wood mill, one in upholstery, another in the sewing area and one in social media.  

“The rest of the money was spent on getting the business on an even keel to ensure continued growth. We’ve been growing steadily by 10 to 15 per cent annually, and are looking at 25 per cent his year, which is a happy place to be, especially in the current climate,” said Paul. 

“We asked the British Business Bank for advice, and they pointed us in the direction of SWIG Finance. Its staff came to the factory and looked at what we did; after that, it was a smooth process with no hitches whatsoever.  

“It was a great relief to have some proper finance in place – there are plenty of short-term options available, but these are over-priced and barely give you a chance to work before you have to pay it back. In contrast, we now have a five-year plan and it’s government-backed, which is so much better.”  

SWIG Finance business manager Jim McLaren said: “This is a well-run family business, and it was easy to see the benefit the SWIG loan would have, including asset purchases to reduce costs, and employing additional people to support growth. It’s good to know we are supporting a local manufacturer that’s providing employment to people in the Cheltenham area.” 

David Tindall from the British Business Bank, said: “The South West Investment Fund is enabling ambitious businesses across the region to access the finance they need to scale up and plan for long-term success. The Cotswold Bed Company is using the investment to boost productivity, improve sustainability, and strengthen its role in the local economy. We’re delighted the fund has been able to support them and help crowd in further investment.” 

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses across the South West. The fund covers the entire South West region and provides loans from £25k to £2m and equity investment up to £5m to help small and medium sized businesses to start up, scale up or stay ahead. SWIG Finance manages the smaller loans part of the fund across the region. 

The Community Investment Enterprise Fund (CIEF) has provided £10 million to SWIG Finance from Triodos Bank and Better Society Capital via fund manager, Social Investment Scotland. This funding enables SWIG Finance to support more micro and small businesses in the region and forms a part of a larger, now £72 million investment initiative across England and Wales, bolstering local employment opportunities and economic growth. 

About SWIG Finance

SWIG Finance is a people-based lender that provides loans and support to help smaller businesses in the South and West Country grow. We base our lending decisions on potential rather than collateral, which means that we can often support businesses when others can't.  

We’re growing every year. In 2024/25, we lent £14.8m to 501 businesses, helping to create and secure over 1,272 jobs and generate £75.7m in social impact. Download the report here.

If you’d like an informal chat about your funding requirements, get in touch with our friendly and professional team to see how we can help: info@swigfinance.co.uk / 01872 227 930