Northern Powerhouse fund strikes first deal in Lancashire
The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in Lancashire since the launch of the £660m fund in March this year.
Based in Blackburn, Littlefair’s Wood Finishing Products, an environmentally-friendly wood finishing products brand, has raised £75,000 from NPIF II – GC Business Finance and River Capital Smaller Loans, which is managed by GC Business Finance and River Capital and part of the Northern Powerhouse Investment Fund II.
Building on the first Northern Powerhouse Investment Fund, businesses across the North can access smaller loans finance from £25,000 to £100,000 with NPIF II to start up, scale up or continue on their growth journey.
With the funding from NPIF II, Littlefair’s will be able to expand its team, enabling it to meet growing demand in the UK and overseas. The investment will help the business hire three new staff in the next 12 months. It will also support the team in purchasing raw materials to increase production capacity, with all products hand manufactured in Blackburn, using British-sourced materials.
The growth of the business follows its successful online expansion into the US, where the wood finishing products have consistently sold out its stock on its Amazon US storefront.
The family-run business was founded in 2016 to provide a water-based alternative to typically solvent-based wood stains. Littlefair’s water-based products are easier to use and more environmentally friendly, winning ‘Eco-Friendly Wood Finishing Brand of the Year’ award from the IE100 Awards 2023.
Rob Littlefair, director at Littlefair’s, said: “We’re proud to produce hand manufactured wood finishing products, made right here in Britain. Our products combine high-quality with sustainability, formulated to be kinder to the environment.
“When we faced barriers in accessing other streams of finance, Boost Lancashire referred us to the Northern Powerhouse Investment Fund II who guided us through every step of the application process. This funding will catapult our business into its next phase of growth, allowing us to add to our team, build on our success and reach our full potential.”
Andy Nichols, investment manager at GC Business Finance, said: “Littlefair’s is a great example of a small business making big steps towards a more sustainable future. Iain Duncan at Boost Business Lancashire was a great help for Littlefair’s and has worked closely with the business before introducing them to us for investment. Rob and the team have built a brand that is proudly British and produced with the utmost care. With a strong presence in the North West, and a successful storefront on Amazon UK and US, we are excited to see Littlefair’s grow their team and develop further.”
Simon Cunnington, director at British Business Bank said: “Accessing finance is vital for ambitious small businesses like Littlefair’s, and the NPIF II investment illustrates that, with the right support, sustainable growth is achievable. As one of the first deals for NPIF II, Littlefair’s success will encourage other business owners to access finance and look towards the Fund as a valuable resource to achieve their growth goals.”
