The hardware manufacturer and distributor of DIY products, which currently employs 30 people, could create up to 20 new jobs following the investment.
The jobs, which would be in warehouse and distribution, would expand the company’s workforce by around 66% in the West Midlands.
Ankesh Agrawal, managing director of Hiatt Hardware, said: “The new premises will help increase the brand image of Hiatt Hardware and expand our capabilities by focusing on strategic long term growth.
“Hiatt Hardware continues to be the preferred choice for customers and this investment will help achieve a higher level of customer confidence, encouraging new opportunities.
“Our existing site is nearing capacity, but the new site puts us in a strong position for growing and expanding our business.
“HSBC’s support has helped us to turn our growth plans into a realistic goal.”
Markus Keller, area director for corporate banking in Birmingham, added: “Hiatt Hardware is a great example of a successful and ambitious British business, doubling its turnover in the last four years.
“We are committed to helping British businesses realise their ambitions and Hiatt’s new warehouse will provide the additional space needed to grow and support its customers.”