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Report shows Gov’t provided manufacturers with £528m of export support
UK Export Finance (UKEF) has published its annual report and accounts, showing it has provided support worth £528m to exporters in the manufacturing sector, including £57.5m of short-term financing.
One company supported by UKEF over the last year was Dundee-based supplier Rautomead, who secured an order with a specialist Chinese metals manufacturing company in Xian. UKEF helped Rautomead secure the deal by using its supplier credit scheme, which allows UK companies to get paid on dispatch for their exports whilst letting buyers benefit from deferred payment terms.
To secure the deal, UKEF provided a guarantee to the London Forfaiting Company, that enabled the lender to pay Rautomead 85% of the contract value after dispatch and collect repayments from the buyer – Shannaxi Sirui – over five years.
UKEF latest results reveal it has provided £4.4bn in support for UK exports over the last year, supporting trade with 69 countries.
Secretary of state for international trade, Liz Truss, said: “This has been another outstanding year for UK Export Finance, helping businesses in every part of the UK win export contracts.
“Supporting international trade will be crucial as the UK looks to recover from the impact of the Covid-19 pandemic. UK Export Finance is already playing a critical role at the centre of the government’s plan to power an export-led recovery and its offer is more important than ever for UK exporters.”
Rautomead’s managing director, Brian Frame, added: “UKEF’s support provided us with the flexibility to meet our customers request to pay for the equipment over an extended period rather than ‘up front’. As a supplier in a competitive market, it is essential to be able to meet the customers commercial as well as technological requirements whilst also managing our cash-flow and risk.”