Member Article

SMEs to receive £1m export finance boost

Businesses could benefit from £1m of Government-backed investment from HSBC, which will be used to improve trade links overseas.

UK Export Finance (UKEF) has put its support behind the bank as it extends its credit line to international trade firm, Synergy in Trade.

Synergy in Trade specialises in opening up multimillion pound finance facilities to SMEs to increase export opportunities.

UKEF’s support hopes to forge further trade links and allow Synergy to extend its funding.

Patrick Crawford, chief executive of UKEF, said: “I am pleased that we have been able to help Synergy by underwriting additional bank facilities for them.

“With the extra funds they will be able to support more small and mid-sized businesses. We are always looking for opportunities to help grow exports and assist UK companies who want to grow their overseas trade.”

Synergy in Trade’s director, David Slinger said: “We base our funding decision on the actual trade transaction, focusing on the quality of the product and on the contract.

“Provided the exporter has a secure means of getting paid from the buyer, like a letter of credit, then a major part of the risk is mitigated.

“Whereas a bank may not want to fund a transaction because the company doesn’t have the necessary security, we assess the risk differently and look more at the trade transaction rather than the security or lack thereof.”

The scheme is part of UKEF’s Export Working Capital Scheme, launched in April 2012, to support small and medium enterprises.

Contracts worth £175m have been secured through the programme so far, by increasing trade opportunities overseas.

This was posted in Bdaily's Members' News section by Miranda Dobson .