Lanarkshire water retailer Intelligent Water has secured a £3.5 million finance facility to fund the next stage of its growth, with plans to more than double its turnover within five years.

Intelligent Business Water Ltd, which trades as Intelligent Water, secured the facility from Beach Point Capital UK, a direct lender to ambitious small and medium-sized businesses across the UK and Ireland. The deal was announced on 5 November and featured in Scottish business coverage on Monday.

The facility is one of the first investments made by Beach Point's fourth fund, BPC Europe SME DAC, which is backed by the British Business Bank and provides growth capital to UK and Irish small and medium-sized firms.

From £8m to £18m

Launched in 2021, Intelligent Water has grown quickly to become an established challenger in the competitive non-household water retail market. The company now turns over around £8 million a year and serves almost 4,000 customer supply points across Scotland.

Its five-year growth strategy forecasts turnover rising to around £18 million. The new funding will mainly support the extra working capital needed as the business grows its customer base, alongside continued investment as it scales up and pursues further opportunities.

Thomas McDade, a director at Intelligent Water, said securing the facility was an important milestone for the business. "Securing this £3.5 million facility from Beach Point represents an important milestone for Intelligent Water and demonstrates the confidence in both our business model and our growth ambitions," he said.

"We have built a strong platform over the last five years, and this funding gives us the financial capacity to take Intelligent Water through its next phase of growth."

Backing for smaller firms

Adam Kelly, managing director for debt and regional funds at the British Business Bank, said the bank was delighted to see Intelligent Water receive the funding, which will support the delivery of its growth plans.

The deal is an example of the kind of growth finance now available to smaller Scottish firms outside the traditional high street banks, with specialist lenders stepping in to fund working capital for businesses that are expanding their customer base.

For Intelligent Water, the facility gives it headroom to keep growing in Scotland's non-domestic water market, where business customers buy their water supply from licensed retailers rather than directly from the public water authority. McDade said the facility gave the company significant additional headroom and flexibility to accelerate its growth and pursue further opportunities as they arise. Beach Point's fourth fund, which made the investment, is dedicated to providing growth capital to small and medium-sized businesses in the UK and Ireland.