A Scottish SME manufacturer selling specialist machinery has won a £1.1m export contract following support from UK Export Finance (UKEF).
RAM Engineering, a distributor of specialist machinery based in Angus, Scotland, faced a cashflow issue after one of its suppliers demanded a change to payment terms: an issue experienced by many small businesses.
After RAM approached them, UKEF referred the business to lender White Oak UK as possible source of financing to help them bridge this gap. Once White Oak UK agreed a short-term finance package of £100,000, RAM could accommodate new payment terms from its supplier and closed the £1.1m deal with a global company.
UKEF offers loans, guarantees and insurance to help businesses to export. The UK government department can also pair exporters with private lenders able to support their needs – ensuring that SMEs lose no opportunity for private financing before they turn to the government.
In recent years, up to 20% of RAM’s annual revenue has been generated by overseas exports. The business continues to grow with a focus on markets like France, USA, UAE and South Africa.
Lara McGrath, UKEF Export Finance Manager, said: “UK Export Finance exists to make sure that businesses can access the right financing to sell overseas. Beyond directly supporting exporters, we can also help them to build new relationships, understand their options and tap into the full range of private trade finance which is available. This deal is a great example of just that.”
Ross A. Milne, Director at RAM Engineering added: “Working with large international customers can be very complex. Providing assurance of legitimacy and resilience is very important; working with White Oak and UKEF has not only offered a route to funding, but also adds a reassurance that only solid, well-known financial institutions can give.”
White Oak UK specialises in providing capital to SMEs and mid-corporates. The lender was established in 1968 and now has a team of almost 200 specialists working with SMEs across Europe. It is able to create bespoke financing plans for SMEs including asset finance, development and working capital loans, invoice finance, asset-based lending, and supply chain and trade financing.
Graham Vance, Senior Consultant at White Oak UK, said: “Our lending to RAM Engineering shows a commitment to provide growth capital across all sectors and regions in the UK, to both existing and new clients. We have been encouraged by the involvement of organisations like UK Export Finance in helping the UK economy grow with businesses like RAM Engineering.”
In July, UKEF released its results for the financial year 2023-24, showing that it had provided a total £8.8bn in new financing last year, helping 650 UK companies to export. This supported up to 41,000 jobs and the contribution of up to £3.3bn to national GDP.
