One of the best known figures on the Midlands' commercial finance scene has returned to his old hunting ground in the Midlands.

David Totney, who has successfully built up two of the leading bank-owned commercial finance operations in the Midlands, is behind what is believed to be the largest commercially funded new start business that the region has ever seen.

Mr Totney recently left his position as Corporate Sales Director of Lloyds TSB Commercial Finance, to be the principal founder and chief executive officer of Liquidity Limited (Liquidity), which has raised capital of around £24 million.

Liquidity will provide sales finance to help fund entrepreneurial businesses in the Midlands and aims to have total advances of over £30 million within the next five years.

Midland's based entrepreneur Grahame Whateley, Chairman of Castlemore Securities Limited, has been appointed non-executive Chairman of the business. He has also provided equity capital.

Liquidity's other executive directors include David Yeomans, a chartered accountant and the former finance director at Powerhouse Retail.

Andy Dodd, formerly Midlands Regional Manager with RBS Commercial Services, has also been appointed as Operations Director, and Mark Asplin has been made a non-executive director.

The company's financing package was arranged by Mark Asplin and David Tucker of Jasper Corporate Finance.

Senior debt finance was provided by Lloyds TSB Commercial Finance.

Mr Totney said: "This is an exciting opportunity to build a new business and I am looking forward to working with entrepreneurs as their funding partner.

"As the region's dependence on large scale manufacture gives way to a broader spread of enterprise, there are an increasing number of businesses with huge potential.

"They are looking for a flexible user-friendly source of finance as well as a close relationship-based connection with a funding provider.

"Our size and structure will enable us to give clients a high level of service and we can really get to know them as their business develops.

"For many businesses, such a high level of service is particularly attractive against the background of the 'call centre culture' that is now common in business banking."

"Grahame's Whateley's appointment is also a major coup for us. His experience will be valuable to the company and will bring additional credibility" said Mr Totney.

Corporate financier Mr Asplin, who worked alongside Mr Totney when they were both at KPMG Corporate Finance, said: "Liquidity's business plan is an exciting proposition, which enabled us to connect a management team with a great track record with blue chip providers of finance seeking to invest in a business with exceptional growth prospects.

"We also believe that Midlands SME's will benefit from an independent sales finance company created specifically to service this market."

Mr Totney, who is 42, has had 19 years experience of asset based lending, including three years on the board of the then stock exchange listed Euro Sales Finance.

At that company, as well as at Lloyds TSB Commercial Finance, where he was also a main board director, he built up substantial Midlands' businesses.

Issued by Quantum PR plc on behalf of Liquidity Limited.