For SMEs, the cruelest time of any growth story is when a once-in-a-generation order sits on the desk, and cash flow can’t stretch to fulfill it.
That, until recently, was the predicament facing Packaging One, the family-run Cheshire manufacturer behind the patented MediaWrap protective packaging used to ship smartphones, laptops and other high-value electronics around the world.
The Middlewich-based company has now closed a £4 million deal with one of the world’s biggest technology companies, after securing a £700,000 loan from NatWest, guaranteed by UK Export Finance (UKEF) under its General Export Facility, provided the working capital is needed to pay suppliers before international customer payments arrive. Without that bridge, the multi-million pound order would probably have been turned away.
It’s the kind of deal that perfectly illustrates why Whitehall has spent the past three years reshaping its export credit agency around smaller exporters rather than title-holding defense contracts and antiquated infrastructure. According to the UKEF Department of Business and Trade, Packaging One was able to access a partial government guarantee from the GEF, which usually covers around 80% of the bank’s exposure, and turned it into a safe haven for a business that needs to scale.
Patented product, worldwide appeal
MediaWrap is no ordinary box. The patented and trademarked solution is designed to integrate smart consumer electronics, and has won admirers from Silicon Valley to the manufacturing hubs of East Asia. Packaging One has now filled orders across North America, Europe, the Middle East and East Asia, with North American demand in particular driving recent expansion.
The numbers tell their own story. Turnover stands at £9.4 million by 2025 and the company aims for £16 million by 2028, an increase of around 70 per cent in three years. At least 50 new full-time roles have been added at the Middlewich headquarters, and executives are now exploring a manufacturing facility in the United States to shorten supply chains for a large number of their customers.
It is a common pattern for exporters supported by UKEF. Earlier this year, Northamptonshire-based Pallite secured a £1.6 million UKEF-backed facility to meet global demand for warehouse space for recyclables and packaging products, while sports brand Vanquish Fitness used a £1 million UKEF-backed NatWest loan to expand into the United States. The chain that applies to all three agreements is the same: ambitious SMEs cannot finance the gap between order and payment, and the government guarantee that turns “no” from the debt committee into “yes”.
Why working capital is more important than ever
Cash flows have long been the silent killer of Britain’s desire to export. According to UKEF, more than £771 million has now been disbursed through the GEF programme, most of it to SMEs. Yet brand awareness remains elusive, as many founders only stumble upon it through a referral from their bank or trade association.
That’s something UKEF is working hard to change. The agency has been rolling out faster digital onboarding, expanded eligibility and new SME-focused tools, a strategic shift detailed in our recent report on how UKEF is rolling out new tools to boost global trade for SMEs. The organization delivered a record £14.5 billion in funding in its last reporting year, supporting more than 667 UK exporters and helping to sustain around 70,000 jobs.
What did the principals say?
Kevin Ledwith, UKEF’s Export Finance Manager in Cheshire, said the case “illustrates why UKEF wants to support more SMEs to grow their exports.
For Emma Chesworth, director at Packaging One, the practical impact has been immediate. “The support from UKEF and NatWest has enabled us to take on larger orders than we could handle before,” he said. “This started the process: more projects, more people employed, and more local benefits.”
Rhys Lloyd-Jones, commercial finance manager at NatWest Group, organized the deal as part of a wider commitment to Britain’s SMEs. “Supporting ambitious family businesses to grow globally is central to NatWest’s commitment to helping the economy grow,” he said. “Working with UK Export Finance, this financing solution has given Packaging One the confidence and working capital needed to secure an ongoing export contract with a major US brand and expand into new global markets while boosting the local economy by creating jobs.”
The transaction is part of NatWest’s £2 billion foreign loan package, which is part of an £11 billion SME loan commitment backed by five of the UK’s leading banks, a sum which, if properly discounted, could dramatically change the dial on Britain’s stubborn export performance.
Big picture
The Packaging One story is, in many ways, a microcosm of where Britain’s growth case currently sits. The firm has a patented product, significant international demand and a reliable plan to double profits. What it lacked, until UKEF stepped in, was the working capital to support its success. That is precisely the gap that the General Export Facility was designed to fill, and on the evidence of Middlewich, it is beginning to do its job.
