A sustainable cleaning business in the North East is targeting growth and job creation after receiving a five-figure investment from the North East Small Loan Fund.
Eco Steam, which is based in Newcastle, provides cleaning and sanitation services to domestic and commercial clients using environmentally friendly cleaning products that don’t contain bleach, ammonia or harmful waste chemicals.
The company was founded after married couple Rachael and Temur Kuronbeov noticed that Temur’s allergies flared up due to the dust in carpets and soft furnishings in the UK. They identified a gap in the North East market for a greener cleaning business and Eco Steam now has a client base that includes The Centre For Life and Northumbrian Water.
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The couple have received a £50,000 Small Loan Fund investment through regional fund management firm NEL Fund Managers, which they will use to enhance the firm’s business development and marketing activity. Eco Steam already has two fully-equipped vans on the road, with plans for a third one to follow, and is looking to bring in the additional equipment and staff it requires to take on larger contracts.
Mrs Kuronbeov said: “The market-leading equipment we work with use dry steam to clean everything from carpets and upholstery through to factory conveyors and machinery without leaving messy puddles, residue or saturation. Water waste is minimal, while the cleaning products we use contain none of the harsh chemicals that are usually required for this sort of work.
“When we did our research, we found that there were no other companies working in this way in the North East, and despite the difficulties of starting the business at the height of the pandemic, we’ve been able to take advantage of this gap in the market to start to build our brand. Our focus on sustainability and eco-friendly solutions is also contributing to several clients’ journeys towards their respective Net Zero targets.
“Setting up Eco Steam is the best thing we’ve ever done, and the success we’ve enjoyed so far has given us the freedom and confidence to look towards the next stage of its development. Choosing to work with NEL wasn’t just about the growth capital they offer, but it has also opened up access to a wide range of business support which will be vital to us as we continue to grow.”
The company’s services include carpet and hard floor cleaning, sanitisation and mould removal, as well as car valeting, upholstery cleaning and deep cleaning in locations including school, factories and offices. It is set to launch an app where customers can book its services and is also considering franchising opportunities.
Mike Guellard, senior investment executive at NEL Fund Managers, said: “Necessity is the mother of invention, and in this case, it has helped Rachael and Temur begin to build a business that has a lot more growth potential left to realise. Sustainability is one of the North East Fund’s main investment priorities and we’re actively building a portfolio of low carbon businesses across the region that are built around its principles.”
Part of the £120m North East Fund and aimed at smaller SMEs, the £9m North East Small Loan Fund typically offers loans of between £10,000 and £100,000 to businesses in Tyne and Wear, Durham and Northumberland. It is hoped the fund will help create more than 1,200 new jobs and help 320 SMEs over the life of the fund.
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