Funding the first installation of patented waste management technology
This month, we are pleased to share how NGI Finance supported an innovative business, operating in the waste management sector, to secure the funding needed to bring their patented technology to market. By working with a lender that is sustainability-focused, we were able to structure a facility based on projected performance, backed by a fully developed product and a contracted first client.
The need:
Our client has developed and patented technology that significantly increases the output of useable by-products from the processing of waste materials. The system reduces the volume of waste sent to landfill, decreases harmful gases released into the atmosphere and increases revenue for site operators. It is a genuinely compelling proposition both commercially and environmentally.
Having reached the point of having a fully developed, tested and patented product, the business was ready to install its first system and required funding of circa £500,000 to do so.
The primary challenge was that the business had been predominantly self-funded through the design and development phase, meaning it had not been able to demonstrate profitability through its accounts. The ability to service any funding facility therefore rested on forward-looking projections rather than historic trading performance. A position that can make accessing finance through traditional routes particularly difficult.
The directors were seeking a funding solution that would:
- Provide circa £425,000 to fund the installation of the first system
- Accommodate a business without a track record of profitability
- Recognise the strength of a fully developed and patented product
- Take account of a contracted first client ready to deliver profitability
- Work with a lender aligned to sustainability and innovation
The solution:
NGI Finance worked closely with the client to build a compelling proposal that addressed the absence of historic profitability head-on. Rather than allowing this to be a barrier, we presented the case in a way that gave lenders confidence in the business’s ability to meet repayments going forward.
The proposal was underpinned by the strength of a fully developed and patented product, combined with the client’s first customer being ready to sign a contract that would deliver the profitability required to service the facility. This gave the projection-based affordability assessment a solid and credible foundation.
We identified and approached a lender with an appetite specifically for growing businesses with a sustainability focus and one that was willing to take a commercial, forward-looking view of the opportunity.
The solution delivered:
- A facility of £425,000 to fund the installation of the first system
- A lender comfortable assessing affordability based on well-supported projections
- A proposal structure that addressed the pre-profitability challenge directly
- Alignment with a funder that values sustainability and innovation
- A clear pathway from first installation to commercial scalability
By presenting the business in the right way to the right lender, we were able to turn what many would view as a barrier into a well-evidenced case for funding, giving the client the financial platform needed to move from development into deployment.
Why NGI Finance?
At NGI Finance, we understand that for businesses developing new technology, the journey to profitability often means that the numbers don’t yet tell the full story. What matters in these situations is the strength of the underlying proposition, the product, the intellectual property, the pipeline and the people behind it.
We take the time to understand each client’s position fully and to present their case in a way that gives lenders genuine confidence. By matching our clients to funders with the right appetite and outlook, we can find solutions where others may not. In this case, we were proud to support a business that is not only building a commercially strong future but doing so with technology that has a genuinely positive environmental impact.
For any questions on this success story or to discuss your business finance needs, please call us on 01993 706403 or email enquiries@ngifinance.co.uk.
