West Midlands exporter becomes first UK business to benefit from UKEF's General Export Facility
A West Midlands-based exporter has become the first UK business to take advantage of a new offer from the Government’s credit agency, UK Export Finance (UKEF), securing the funds they need to sell internationally and grow their business through the COVID-19 pandemic and beyond.
Simworx, a tech company based in Kingswinford, recently completed the first General Export Facility (GEF), a new scheme launched by UKEF, with support from HSBC UK. Through GEF, UKEF can guarantee 80% of any facility offered by a bank to finance the costs of exporting. It means financial support, like loans, are now much easier to access for smaller UK businesses with global ambitions.
Simworx is a leader in the design, development and manufacture of attractions for the global theme park and entertainment industries, with recent projects completed in countries such as Malaysia, New Zealand and Vietnam. The company employs 30 people in the West Midlands, supporting highly skilled local jobs through international exports.
The seven-figure facility from HSBC UK, guaranteed by UKEF, will provide additional working capital, helping to ease cash flow constraints as a result of the pandemic and enable Simworx to raise advance payment guarantees to secure and complete significant overseas contracts worth typically between £1 million and £8 million.
With exports contributing to 90% of its annual turnover, the ability to raise payment guarantees will prove critical for Simworx and its future expansion plans. The business has built a strong presence in the Far East, Middle East and Northern Europe for its advanced simulation technology products and has identified these ‘emerging markets’ as key growth areas for the business post-COVID-19.
Commenting on the deal, Terry Monkton, CEO of Simworx, said:
Graham Stuart MP, Minister for Exports, said:
Anne Lockett, UKEF’s Export Finance Manager, said:
Ian Tandy MBE, Head of Trade for HSBC UK, added:
Simworx supplies a wide range of turnkey simulation technology products to the international theme park and entertainment industries, including 3D and 4D Dynamic Simulation Attractions and 4D Effect Cinemas. Its bespoke attractions are designed to delight, thrill and inspire people.
GEF aims to free up funds for UK businesses, particularly SMEs, to cover the costs of international trade whilst providing the ability to fulfil export contracts and scale up business operations.
Background
HSBC UK
HSBC UK serves around 14.5 million customers across the UK, supported by 32,000 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates.
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2,959 billion at 31 March 2021, HSBC is one of the world’s largest banking and financial services organisations.
About UK Export Finance
UK Export Finance is the UK’s export credit agency and a government department, working along-side the Department for International Trade as an integral part of its strategy and operations.
Established in 1919, it exists to ensure that no viable UK export should fail for a lack of finance from the private market. It provides finance and insurance to help exporters win, fulfil and get paid for export contracts.