An overview of the client
A successful mechanical engineering business based in the South West of England had developed a strong reputation for technical excellence and delivery.
Their procurement division had recently secured several multi-million-pound government contracts, positioning the company for rapid expansion.
Financial obstacles impacting growth potential
Although the contract wins represented a significant milestone, they brought a complex set of financial challenges.
The business needed to scale quickly, covering upfront procurement costs, managing extended payment terms from government clients, and strengthening the supply chain.
However, the company lacked the necessary working capital, and existing finance facilities were not structured to accommodate this level of growth.
It was also critical to access capital without losing operational control while ensuring the funding model remained sustainable and adaptable as the business evolved.
Putting strategy into action
A full financial review was carried out, which included assessing current funding arrangements, examining the balance sheet, and identifying underutilised assets.
Working closely with the leadership team, business finance solutions across the capital stack were evaluated, and cashflow requirements were mapped against contract timelines.
The result was a bespoke £8.5 million finance package, combining:
- Trade Finance for upfront supplier payments
- Invoice Finance to release cash from government receivables
- Property Finance to unlock equity from company-owned premises
This multi-product solution was designed to scale the business, enabling additional funds to be drawn down as new project milestones were reached.
Clear outcomes and future-ready growth
The impact was clear:
- Tailored finance package aligned with operational and strategic needs
- £8.5 million multi-product facility provided the flexibility to scale rapidly
- Improved cashflow control and reduced reliance on short-term borrowing
- Released capital from existing assets without compromising control
- Future-proof funding model designed to grow with the business
This case study demonstrates how engineering firms can secure growth finance, utilising structured financial strategies that support rapid scaling while maintaining operational stability.
