Bank helps Lye engineering firm expand export trade
Lye company FlexEJ, which supplies engineered and standard rubber bellows, metal expansion joint and pressure fabrications, turned to NatWest to help increase its international business.
The firm, which currently employs a team of 28, and has been headed up by Tim Robinson since 2002, has established a reputation as a technically-led company that understands the value of combining engineering expertise with a great product and service.
Clients span the HVAC (heating, ventilation and air conditioning), refining, petrochemical, pharmaceutical, industrial and offshore markets. With global experience, Tim has built an international client base, too, specialising in Japan and the Middle East.
Recognising the opportunity to expand the international element of their business, Mr Robinson and his management team at the company based on Morgan Rushworth Industrial Estate, Bromley Street, were looking for ways to finance their growth plans, with the aim of taking their export turnover from 15 to 25 per cent.
Ian Fletcher, international manager, at NatWest's Transaction Services Team, introduced Mr Robinson to the Government's Bond Support Scheme.
Managed by UK Export Finance this programme is designed to help exporters raise contract bonds such as advance payment guarantees – where UKEF guarantees up to 80 per cent of a bond issued – and performance bonds, where 50 per cent of the value of a bond issued in favour of an overseas is guaranteed.
Tim Robinson explained:?"Exporting can be a long and daunting process when it comes to finance across the supply chain. Our challenge was ensuring we had substantial cash-flow to support a number of large orders and digest the cost involved. Ian and his team opened up this possibility to us by introducing us to the scheme"
With the new bond scheme in place, FlexEJ has been able to both execute and quote for bigger contracts, confident these can be fulfilled without impacting cash flow.
With a series of large projects in the pipeline, the firm is on track to meet their target of a 25 per cent overseas client base and set for a positive year.
"This funding allows us to be more strategic about our growth and certainly pitching for bigger contracts has become far easier across the business, added Mr Robinson.
"We're ready to build on this growth in a planned way. The export support is there for smaller businesses; we were lucky to have NatWest to help us access this," added Mr Robinson.