A successful export win has been announced by UK boatbuilder Blyth Workcats and UK Export Finance, made possible by the UK government’s export finance support.
The project – to supply a purpose built catamaran for a German University research programme – 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.”
By Jake Frith
