UKEF Support Brings Success for Blyth
An export win by Blyth Workcats and UK Export Finance, made possible by the government’s export finance support.
The project – to supply a purpose built catamaran for a German University research program – went ahead thanks to the support of UK Export Finance, the UK’s export credit agency. It stepped in to share some of the financing risk with Blyth’s bank, enabling the export to go ahead, where it otherwise would not.
Blyth Workcats, which produces catamarans for the UK and in a growing number of overseas markets, won the contract in December 2015.
The additional finance was required due to the German buyer’s requirement for an advance payment bond, which can be a common challenge for exporters. Blyth contacted David Scott, the UK Export Finance adviser based in Essex, who proposed a solution. UKEF would partner with Blyth’s bank and issue a guarantee for 50% of the value of the bond, thereby reducing the risk.
Stuart Davidsen, Production and Design Manager at Blyth, said: “UKEF support was paramount for this project. Our bank couldn’t cover 100% of the risk, but UKEF was able to take half, which made it happen. We couldn’t have gone ahead without it.”
Blyth, who have been based in Canvey Island since 2003 and who employ 22 people, are now planning for more orders from both the UK and overseas.
UK Export Finance is working to raise awareness of the support it can provide to firms as part of the government’s national Exporting is GREAT campaign, which aims to encourage UK firms to take the opportunity for growth that exporting represents.