According to Howard Matthews, chief executive of the Tyne and Wear-based direct marketing group, the boost will not only improve cash flow within the business, but will also fuel upcoming investments.

He added: "We're looking to improve our digital offering but also hopefully add to the group with acquisitions going forward."

In 2005, NEMC completed the buyout of Gateshead printing business Parkdale Press.

The current investment is in the form of mezzanine finance that "sits somewhere between debt and equity," according to a spokeswoman for NEL, which specialises in providing finance to SMEs in the North East . The investment capital is lent under a "warrant" that includes share options whereby investors can benefit under situations such as a change of ownership. The spokeswoman claimed this was generally "cheaper than venture capital".

Heather Ramshaw, managing director of NEMC, said the £250,000 injection was important to the group's ongoing development, "especially in the current economic climate".

She added: "The group has performed consistently well over the years, and we are aiming to continue to improve profitability and secure our customer base, but we are also not complacent and recognise the need to keep evolving and offering enhanced services to our clients."

NEMC was established in 2001 and employs 40 permanent staff, in addition to a number of casual employees. The group has an annual turnover of £2.8m.