Webster Griffin wins export contract thanks to government support
The Sussex-based manufacturing firm continues to secure global contracts following UK Export Finance (UKEF) backing.
| About the transaction: Webster Griffin | |
|---|---|
| Region | Sussex |
| Sector | Manufacturer: Bag-filling machinery |
| Export destination | India |
| UKEF support | Bond support scheme |
In 2016, we provided Reliance with a £300 million line of credit to help fund construction work on its refinery in Jamnagar. Our financing was provided on the condition that Reliance sourced goods and work on the project from the UK, resulting in over 100 additional opportunities for UK companies, including Webster Griffin.
Having previously successfully delivered orders for Reliance worth more than £1 million, Webster Griffin received another £700,000 export contract supplying the UKEF-backed Jamnagar project.
However, as each of its bespoke machines take over a year to make, the delay between securing, fulfilling and getting paid for a contract put pressure on the company’s cashflow.
Reliance offered an advance payment and second interim payment to help finance the cost of staff and supplies, but requested guarantees on the advance payment and performance in return. Such guarantees provide security for overseas buyers and are a common requirement for securing export contracts.
While Webster Griffin’s bank, HSBC, was willing to issue the guarantees, the deposits required in return would have tied up the company’s cashflow, which it needed to fulfil the contracts.
Fortunately, we were able to help. Our Bond Support Scheme guaranteed 80% of the value of the advance payment, interim payment and performance guarantees, allowing HSBC to issue the bonds with reduced deposits.
Thanks to our support, Webster Griffin was able to hold onto vital cash, which it could use to pay its staff and suppliers prior to completion, securing hundreds of thousands worth of revenue and supporting around 50 jobs in the South East and around the UK.
Mark Wilson, Director of Webster Griffin, said:
Previously our international growth was constrained by juggling our cashflow and securing guarantees for our buyers. Now we can go overseas and sell our products confident in the knowledge that UKEF support is there.
Working with UKEF has been incredibly easy and has helped us secure millions of pounds worth of export contracts. Its support is so valuable to UK companies with a strong international focus like ours.
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