How a toy business transformed cash flow into expansion

Industry: Services

Product: IDeal with GGS and bad debt protection

Value: £1m

The client

This toy design business is run by a husband-and-wife duo with over 15 years of experience in the industry who, after spending several years in China building strong supplier relationships, launched their own company. Today, they create bespoke toys for major UK retailers and develop computer games, leveraging an in-house design team and trusted network of partners.

The challenge

As the firm grew and began supplying larger retailers, they faced longer payment terms and more complex ordering cycles across the year. While demand peaks ahead of Christmas, production and purchasing commitments occur well before invoices fall due, creating cash flow challenges.

At the same time, their ambitions shifted from simply managing seasonal variability to investing in growth: opening a dedicated showroom and building a research and development team focused on high‑end, technical electronic toys. This diversification required significant upfront investment alongside the working capital needed to scale production for bigger orders.

To bridge the timing gap between fulfilment and customer payment, and to fund materials, production, and staffing in line with larger order volumes and extended payment terms, the company needed a flexible finance solution.

The solution

Close Brothers Invoice Finance delivered a £1 million invoice discounting facility via the IDeal platform, integrating seamlessly with the company's existing accounting software, ensuring real-time visibility and control over funding.

This unlocks cash tied up in their unpaid invoices, so materials, production, and staffing can increase in line with business growth, without impacting day-to-day operations.

To support expansion plans and increase funding, the facility was structured with the Growth Guarantee Scheme (GGS), a UK government‑backed programme administered by the British Business Bank.

GGS works alongside products such as invoice finance, and enable a higher facility limit and additional headroom, allowing the firm to invest upfront in a showroom and research and development.

To mitigate risk as the firm onboard new customers, Close Brothers implemented bad debt protection, to ensure they remain protected from pre-approved customers if they fail to pay. Our team conducts thorough credit checks on new clients before any transactions, reducing exposure to potential losses and providing peace of mind during this exciting phase of expansion.

The result

With this enhanced facility, the client has successfully expanded their customer base, now supplying two major high-street supermarkets. The team has grown, with several new hires dedicated to research and development, and plans are underway to broaden their product range.

The flexibility of invoice finance has been key, supporting the business through seasonal fluctuations and now enabling strategic investment for long-term growth.

If you’re looking for a funding solution that grows with your ambitions, speak to our experts today.