£10m Environmental Manufacturing Funding Package: Case Study

Background

Our client is a UK-based environmental manufacturing company operating across multiple production sites. The business had developed a proprietary process to produce reusable polypropylene, a material with significant commercial and environmental implications across packaging, automotive, and consumer goods sectors.

The company had secured long-term supply agreements with several large UK and European buyers and was in the process of scaling production to meet contracted demand. Turnover had grown to approximately £18m per annum, with strong forward order visibility. Despite healthy revenues, the business faced a structural working capital challenge common to manufacturers: long production cycles, extended customer payment terms (60 to 90 days), and significant raw material costs that had to be funded upfront.

Following a recent change in ownership, the founder took full control of the business. With this transition came a clear strategic priority: ensure the company had maximum, flexible funding capacity available to support rapid scaling and product commercialisation.

At the time, the business held a £7m invoice discounting facility and a £1.75m trade finance line with its existing banking partner.

The Challenge

While the business had strong backing and a solid funding structure in place, its existing facilities were no longer sufficient to support the next stage of growth.

Key challenges included:

The priority was not only to increase facility size, but to build a more strategic, flexible funding structure capable of supporting rapid commercial rollout.

Our Approach

Spark Finance undertook a full review of the business's existing facilities, financial position, supply chain requirements and future growth plans.

The timing of the funding was particularly important. The company was preparing to bring an exciting new product to market: reusable polypropylene (PP).

To support this next chapter, Spark structured a £10 million multi-facility funding package, designed to provide maximum flexibility as the business scales.

The facilities included:

Spark also managed the transition from the existing banking structure, ensuring continuity of funding and minimal disruption to operations throughout the process.

Outcome

The business successfully secured a £10 million multi-facility funding package at an important moment in its growth journey, significantly increasing its financial capacity ahead of a major product launch.

The timing was critical. As the business prepared to bring a new product to market, having the right funding infrastructure in place was essential to ensure it could scale production, strengthen its supply chain and respond quickly to growing demand.

As a result, the business benefited from:

With the right facilities in place, the company has been able to confidently accelerate the next stage of its growth strategy, bringing an innovative new product to market while ensuring it has immediate access to capital as opportunities arise.

This transaction demonstrates Spark Finance's ability to structure complex, multi-facility funding solutions for ambitious UK manufacturers, ensuring businesses have the funding, flexibility and infrastructure needed at the moments that matter most.

Looking for Manufacturing or Trade Finance to Support Growth?

Spark Finance works with 100+ UK lenders including specialist manufacturing and trade finance providers. If your business is facing working capital constraints, has a growing order book you cannot fully fund, or needs equipment finance alongside a revolving facility, our team can structure a package tailored to your specific trading cycle.

What is Trade Finance?

In a typical trade finance transaction, the lender pays the supplier on behalf of the buyer when goods are ordered or shipped. The buyer then repays the lender once their customer pays - often 60 to 120 days later. This eliminates the need to fund stock or raw materials from working capital, allowing businesses to take on larger orders than their cash position would otherwise permit.