The facility includes an Advance Payment Guarantee (APG), to support Glasscoat’s manufacturing and sale of a glass coating machine to a German firm for £710,000.
As part of the transaction, HSBC worked with UK Export Finance (UKEF), the UK’s export credit agency, who agreed to support the contract by underwriting the guarantee offered to the overseas buyer.
Glasscoat’s machines are sold to factories that produce a range of items, including alcohol and perfume bottles.
The majority of the machines made by Glasscoat are exported overseas, to countries including Poland, Brazil and the US, making up 85% of the company’s sales, however it is hoped that this latest deal will expand the firm’s operation into further territories including South America, Europe, Russia, Lithuania and Turkey.
Ian Cripps, managing director at Glasscoat, said: “We have skills that are not available elsewhere in the world, so overseas trading is key to our business.
“Our growth ambitions are to export our quality machinery to new markets, such as South America, Europe, Russia, Lithuania and Turkey.
“The support provided by HSBC and UKEF helped us to complete this deal and puts us in a strong position to expand into new international markets confidently and with reduced trade risks.”
Stephen Peart, HSBC's area director of business banking in the Black Country and Shropshire, said: “Trading internationally without established relationships can often feel like a leap of faith.
“However, the UK is an attractive destination for foreign investment and we believe that businesses should have the confidence and ambition to trade globally.
“Guarantee facilities are one way of doing this and can be very beneficial in helping companies like Glasscoat achieve their ambitious plans to expand further overseas.”
Anne Lockett UK Export Finance Adviser for the Black Country added: “UKEF is here to help make exports happen. Our support for companies like Glasscoat International shows how we can help UK businesses realise their ambitions to grow by selling overseas.”
If you’ve enjoyed this article, click on the link below to sign up for more similar stories in your region.
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement