Posted: 27/09/12 by Synergy In Trade
Specialist international trade financier Synergy in Trade is extending the support it can offer to companies exporting overseas after securing an additional £1 million finance facility from HSBC’s Northants, Milton Keynes and North Bedfordshire Commercial team.
Synergy in Trade specialises in assisting UK-based companies that cannot finance trade deals via conventional bank routes with all parts of their international trade transactions. It assists exporters by advising clients on international contracts, and liaising with banks with regard to the export Letter of Credit, through to final stage of organising freight, delivery and producing the shipping documents under the letter of credit. It also helps importers finance trade through issuing Letters of Credit to their overseas suppliers against pre-confirmed orders to their UK customers.
The company was formed in 2006 by a team of ex-bankers and is based in Lutterworth, Leicestershire. HSBC is providing a further £1 million credit line to enable Synergy in Trade to expand funding through the trade products it offers to facilitate international trade, such as Letters of Credit and Back to Back Letters of Credit. The funding has been backed by the Export Credit Guarantee Department (ECGD) in a bespoke arrangement with the Bank. HSBC is a long-term backer of Synergy in Trade and this initiative will increase the company’s existing multi-million pound finance facilities. Primarily focused on small to medium sized enterprises, last year Synergy in Trade funded £20m of international trade deals and it expects to exceed that level in 2012.
The relationship with Synergy in Trade is managed by Nick Clements, Senior International Commercial Manager based at HSBC’s Milton Keynes Commercial Centre.
Synergy in Trade Director, David Slinger, explains the company complements the service offered by banks rather than competing with them: “We base our funding decision on the actual trade transaction, focusing on the quality of the product and on the contract. Provided the exporter has a secure means of getting paid from the buyer, like a Letter of Credit, then a major part of the risk is mitigated. Whereas a bank may not want to fund a transaction because the company doesn’t have the necessary security, we assess the risk differently and look more at the trade transaction rather than the security or lack of. Indeed we actually receive many of our deals from the banks because they recognise the valuable role we offer.”
Andy Mason, HSBC Northants, Milton Keynes and North Bedfordshire Area Commercial Director, said: “Specialist trading businesses like Synergy can play a key role in giving exporters the confidence to internationalise their business, as well as providing the practical tools and finance required to complete a contract. We are delighted to be able to support this company as its ethos chimes with that of HSBC – helping companies to export and make the most out of international trade. Our research shows that UK international trade is going to grow by 66% by 2025, so there is a lot of business out there for British companies.”
Patrick Crawford, Chief Executive of UK Export Finance, said: “I am pleased that we have been able to help Synergy by underwriting additional bank facilities for them. With the extra funds they will be able to support more small and mid-sized businesses. We are always looking for opportunities to help grow exports and assist UK companies who want to grow their overseas trade.”