About Shade Station

Manchester-based Shade Station is a highly successful UK and international online retailer specialising in prescription glasses and designer sunglasses. Since acquiring the brand, the current management and backers have driven substantial growth, increasing annual turnover from £4m to £22m in the most recent year. The company is now pursuing ambitious expansion plans, building on its strong market position and growing customer base. 

The Challenge

Dissatisfied with its existing banking arrangements, and on the advice of its new chairman and investors, Shade Station decided to switch to NatWest. in part because of the High Growth IP Backed loan which the bank launched in January 2024.

As Jon Walden, Shade Station’s Chief Operating Officer, explains, the company wanted to reduce an existing loan while also securing funding for planned expansion projects. Although the business is highly cash generative and could have financed this growth internally, taking out a bank loan allows it to accelerate development and move forward more quickly with its expansion plans. 

Guy Boxall, our NatWest Relationship Manager, suggested using an IP-backed loan. As an IP-rich business, we have been able to reduce our interest costs by nearly 50% with NatWest’s High Growth IP-backed loan, creating a far more efficient funding structure and delivering meaningful savings for the business.

This funding allows us to accelerate our international expansion, invest further in our AI-driven platform, and move faster to bring smart eyewear to a much broader audience through a best-in-class e-commerce experience.

Jon Walden - COO

The Solution

The NatWest High Growth IP-backed loan was launched in January 2024 in partnership with IP evaluation experts Inngot. IP-rich scaleup SMEs can borrow as little as £250,000, up to a ceiling of £10m.

Loans are secured against up to 50% of the value of the firm’s qualifying intangible assets, as determined by Inngot’s sophisticated IP identification and valuation platform. 

The IP-backed loan targets growth companies which are rich in intangible assets, but have few tangible assets, making it difficult or even impossible for them to get traditional lending from banks. Software, patents, copyrights, trademarks, registered designs and other intangibles can be valued and used as collateral.

Part of the NatWest loan is being used to refinance an existing facility that Shade Station took out in 2023. Jon explains: “Guy Boxall, our NatWest Relationship Manager, suggested using an IP-backed loan. As an IP-rich business, we have been able to reduce our interest costs by nearly 50% with NatWest’s High Growth IP-backed loan, creating a far more efficient funding structure and delivering meaningful savings for the business.”

He adds: “This funding allows us to accelerate our international expansion, invest further in our AI-driven platform, and move faster to bring smart eyewear to a much broader audience through a best-in-class e-commerce experience.”

The remainder of the IP loan will be used to support Shade Station’s next phase of growth, including expansion into overseas markets through up to 50 new country-specific websites with full localisation and translation, further development of AI-powered search across its e-commerce platforms, and entry into the smart eyewear sector. This includes glasses capable of displaying text and data directly onto the lens, typically connected to a smartphone via Wi-Fi or Bluetooth.

Jon explains: “Smart eyewear has seen huge growth in the UK over the past year and we are already seeing strong demand across our customer base. Our plan is to establish a dedicated smart eyewear brand with its own standalone website, positioning us to become the UK’s leading specialist in this fast-evolving category.”

Jon completed the majority of the required input on the Inngot IP identification and valuation platform, supported by the company’s CFO. Where minor clarification was needed to ensure accuracy, the Inngot support team provided excellent guidance, complemented by a strong level of service from NatWest throughout the process.

Incidentally, Jon has an in-depth understanding of the software that forms the bulk of the IP which has been used as collateral for the NatWest IP loan. He began working with Shade Station in 2003 writing the original code behind the company’s e-commerce platform, and has been closely involved in its ongoing development and  subsequent iterations ever since.

He observes: “The Inngot process was very smooth and well-structured throughout. NatWest has been highly responsive, took the time to understand our needs, and provided a funding solution that matches the needs of our business. The overall experience has been excellent.” 

Guy Boxall, Relationship Director North West Commercial Mid-Market at NatWest, said: “We were very happy with the IP value that Inngot’s platform found. It enabled us to provide Shade Station with sufficient funding for investment and to reduce the outstanding loan as well. The new management team has been in place for two years, and they have done a great job growing both brand recognition and turnover.”

Sam Atherton, Assistant Director for Credit Delivery, North at NatWest added: “Usually, when we’re lending against IP, it’s all about forecasts. But with Shade Station, we also had the last few years financials to sit alongside its trade marks and its in-house developed software. It passed our tests for both the High Growth IP loan and a traditional loan. It’s great to start a new relationship with a key player in a growing market.”

The Result

£1.35 million finance package approved by NatWest

Shade Station successfully negotiated a £1.35 million loan from NatWest using its IP as collateral, to pay down an existing loan and reduce interest payments, support overseas expansion and move into the smart eyewear market in the UK. 

We were very happy with the IP value that Inngot’s platform found. It enabled us to provide Shade Station with sufficient funding for investment and to reduce the outstanding loan as well. The new management team has been in place for two years, and they have done a great job growing both brand recognition and turnover.

Guy Boxall - Relationship Director at NatWest Commercial Manchester