UK Export Finance (UKEF), has guaranteed more than £1 million worth of financing for Dundee-based manufacturing company, Rautomead Ltd, to supply machinery to a specialist Chinese metals manufacturing company.
Rautomead’s continuous casting machine will be used to produce copper chrome zirconium alloy rods for Shaanxi Sirui Advanced Materials, based in Xian.
UKEF, the export credit agency, helped Rautomead secure the deal by using its Supplier Credit Scheme, which allows UK companies to get paid on dispatch for their exports whilst letting buyers benefit from deferred payment terms.
To secure the deal, UKEF provided a guarantee to the London Forfaiting Company, which enabled the lender to pay Rautomead 85% of the contract value after dispatch and collect repayments from Shannaxi Sirui over five years.
Brian Frame, Rautomead managing director, said: “As a supplier in a competitive market, it is essential to be able to meet the customers commercial as well as technological requirements whilst also managing our cash-flow and risk. We see good opportunities for this solution in the future to support our sales activity.”
Rautomead, manufacturer of continuous casting technology for non-ferrous alloys, employs over 50 staff and has been exporting worldwide for 35 years.