In today's challenging economic landscape, securing the right financing can be the key to unlocking growth for your small business. The story of Slime Party UK, a small business from Barnsley, serves as an inspiring example of how government-backed financing can significantly boost a company's growth, enabling it to create new jobs and expand its product offerings.
Slime Party UK's Journey: From Kitchen to Global Markets
Slime Party UK started as a modest kitchen project by Ruby Sheldon, who developed a mess-free sensory putty. The product quickly gained popularity, leading to the business supplying some of the largest toy retailers worldwide. However, despite its success, Slime Party UK encountered significant challenges when trying to secure the necessary financing to support its growth, particularly in export markets.
Overcoming Financing Challenges
With a turnover of £150,000, the company was considered too small to qualify for traditional trade finance packages, a common issue for many micro-enterprises. In search of a solution, Slime Party UK turned to UK Export Finance (UKEF), the UK government's export credit agency.
UKEF facilitated a connection between the company and Newable Commerce, a specialist lender focused on supporting small and medium-sized enterprises (SMEs). With the backing of UKEF's General Export Facility (GEF) guarantee, Newable Commerce provided a £55,000 financing package to Slime Party UK.
This financial support proved to be transformative. The company was able to open a new 15,000-square-foot factory in Barnsley, increase its workforce by 50%, and broaden its product range. Additionally, the funding allowed Slime Party UK to meet the growing demand from its export markets, particularly in Europe and the Middle East, including countries like Lebanon, Malta, and Ireland.
Thanks to the financial backing and strategic support received, Slime Party UK is now well-positioned to continue its expansion into new global markets.
Lessons for Other Small Businesses
The success of Slime Party UK offers valuable lessons for other small businesses, especially those involved in exporting:
- Explore Government-Backed Financing: If your business is struggling to secure traditional financing, consider government-backed options like UKEF's General Export Facility. These resources are designed to support SMEs at various stages of growth, particularly those looking to expand internationally.
- Partner with Specialist Lenders: Non-bank lenders like Newable Commerce, which specialise in supporting SMEs, can offer tailored financing solutions that align with your business's unique cash flow needs and growth objectives.
- Leverage Networking Opportunities: UKEF not only provided financial support but also connected Slime Party UK with Dynamic Funding Limited, a broker that helped the business secure additional private financing. Building a network of financial and strategic partners can open doors to new opportunities and resources.
- Invest in Growth and Innovation: Securing financing is just the first step. Like Slime Party UK, it's crucial to invest wisely in areas that will drive growth and innovation, such as new facilities, staff, and product development.
Conclusion
For small businesses looking to expand, the message is clear: the right financial backing, coupled with strategic partnerships, can unlock significant growth opportunities and pave the way for success. If you're interested in exploring how government-backed financing could benefit your business, why not reach out to us? We can help you evaluate the best finance options to support your business's growth journey.
For more information on Slime Party UK's success and government-backed financing options, visit the official story.