With support from UK Export Finance and Lloyds Banking Group, Leeds-based Meltog has accessed working capital to fulfil a major export order.
Meltog is a leading name in industrial machinery, making can-making equipment and waste recycling equipment used in industries including food packaging and recycling. As much as half of its £2.5m turnover comes from exports, and it sells to buyers in markets across the world.
When Meltog secured a £400,000 order with a new customer, a major food processing and packaging group based in Saudi Arabia, this represented a significant boost to the company’s revenue. However, because of the size of the order, manufacturing the machinery would create cashflow pressures, so Meltog had to explore its financing options.
UK Export Finance (UKEF), the UK’s export credit agency, and Lloyds Banking Group, Meltog’s bank, worked together to provide a solution. Lloyds was able to give Meltog a working capital loan of £90,000, supported by additional security provided by UKEF in the form of a guarantee under its working capital scheme. With this cashflow support, Meltog was able to fulfil this major order at the same time as financing other business activities.
Meltog’s Julian Heyworth said: “The support of Lloyds Banking Group and UK Export Finance has been invaluable for us with our new customer in Saudi Arabia. Having financial flexibility can make all the difference when looking to secure orders and Lloyds and UK Export Finance working together have provided a solution that works for us.”
Paul Wright, Export Finance Manager for Yorkshire, said: “We at UK Export Finance are very pleased to be supporting Meltog. UKEF is here to help businesses of all sizes and in all sectors realise their ambitions to sell overseas and this is a great example of UK Export Finance working with a bank to increase the level of funding available to help an exporter pursue export opportunities.”
Stuart Hodgson, Lloyds Banking Group, said: “Lloyds and UK Export Finance worked in partnership to provide Meltog with the funding required to support this opportunity. We look forward to supporting Meltog in the future as Julian and the team look to develop the business further.”