Green’s Power has become the first company to receive a loan from the UK Export Finance (UKEF).
The new government-backed loan and bond support is being offered by the UKEF to support the supply chain, as well as further strengthen exports sector in the country.
Earlier, the loan and bond support was provided only to the exporters by the UKEF.
Green’s Power managing director Matthew Crewe said: “Having worked with UKEF on several export contracts, UKEF has played a significant role in our international growth by giving us the financial resource to seize those overseas opportunities.
“Now this new avenue for support means we have greater capacity to grow our business in the UK too, while supporting UK exports, this is really great news for the UK supply chain.”
For more than two centuries, Green’s Power has been helping the companies nationwide to reduce their emission levels by capturing and reusing waste heat.
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The UK-based manufacturer also exports its products to its customers located in 25 countries worldwide.
Additionally, Green’s Power also supplies its products to other businesses in the UK that then go on to export these by themselves.
In 2015, Green’s Power won a supply contract with a UK energy company that exported the components to Africa as part of a wider package.
In order to sign these contracts, it was obligatory for the company to provide a performance guarantee for the benefit of its buyer.
It is reported that typically banks require companies to provide cash security prior to issuing a bond, which can restrict the cash a company has available to fund its orders or take new ones on.
The UK’s export credit agency, UKEF agreed to provide a guarantee for 80% of the bond’s value to Green’s Power’s bank, HSBC.
After receiving a guarantee for 80% of the bond’s value, HSBC has released the bond to Green’s Power without additional security, and helped the energy company deliver the contract, as well as enhance its capacity to finance other orders from the UK and overseas.
UKEF Yorkshire and Humber export finance manager Paul Wright said: “Green’s is a great example of how UK companies will benefit from UKEF’s new supply chain trade finance.
“By extending support beyond the exporter, into the supply chain, we will not only help individual UK companies grow their business, but also make UK exports more competitive on a global scale by making it easier for them to deliver.
“This is just one-way UKEF is constantly innovating to provide the best support for UK exports. In addition, Green’s operates in a market where customers often require bank guarantees, and UKEF support in this area is now much more accessible through our partnership with high-street banks, introduced in October 2017, which streamlined the process for both bank and exporter.”