Case studies where Synergy in Trade have supported UK exporters

Case Study 1.

Business Source & supply generator sets to overseas buyers e.g. Nigeria, Saudi & Bangladesh. Sales 2010 were £90k.

Bankers HSBC. No facilities

Trade Client won a contract to supply Saudi with £1m of gensets against a letter of credit in their favour. Gensets were manufactured in the UK & mfr required cash up front or a L/C as security for payment. Synergy provided client with a back to back credit facility & issued L/C`s to the UK mfr & attended to the logistics in shipping the gensets to Saudi. Sales for 2011 were £1.2m & the profit generated enabled client to develop their infra structure & to employ a further person. Synergy also has since undertaken their accounts & provides the Co with a book keeping service & monthly MI.

Case Study 2.

Business Engineering Co who designs & installs rubber dams in the hydro-electricity sector. Sales market is predominantly Turkey & USA. Turkish Co build dams in Turkey & sells the electricity to the grid recouping the cost over 10 – 20 years.

Bankers Natwest. No facilities. Bonds & guarantees required to support the contracts are undertaken by their associate Co in Norway through their bankers.

Trade Co have had several large contracts in Turkey & have needed to source & supply several components from around the world & then deliver to site & install. Synergy & cleint met with the buyer in Turkey & together negotiated the terms of the contract & ensured that the L/C from the buyer was not only workable but gave a degree of protection to the buyer.Synergy provided a back to back credit facility & issued L/Cs to the various suppliers in China, & arranged the transport of the components to site. Not as easy as it sounds due to the huge size of some of the components & attended to the cumbersome & beaurocratic customs procedures in Turkey. Synergy produced all the shipping documents required under the export L/C & presented the docs for payment to the UK bank & were successfully paid. Contracts are ongoing & Synergy attends to movements of components from various European countries and China. A further project is expected in December 2011, and Synergy has been asked to support the transaction by back to back credits.

Case Study 3.

Business Co source & supply titanium alloy bars & sells to the aerospace industry in India.

Bankers Lloyds Bank. No facilities

Trade Co have received an order from India for US$550k. Products are sourced from China/Europe shipped to the UK & then air freighted at buyers expense to India. Chinese supplier requires a L/C as security for payment. Risk is minimised if the goods are being shipped from supplier direct to buyer. In this case the goods; weighing 14 tonnes, are to be shipped by sea & then cleared in the UK & air freighted under the control of the buyer’s freight forwarder. Terms of payment are by L/C from Import & Synergy got involved at the start to ensure that the L/C was workable & no adverse clauses.

· Provided a back to back credit facility to client issued a L/C to the supplier.
· Liaised with the supplier & attended to the shipment from China to the UK.
· Liaised with the buyers Freight Forwarders to arrange the air freight to India.
· Produced the shipping docs under the export L/C & presented to UK bank for payment

Case Study 4.

Business Designs & sells footwear & sources from factories in China & India. US$10m pa of shoes are sold to Shopping Malls in the Middle East & also sells to major stores ( e.g Kurt Geiger, Reiss and Russell & Bromley) in the UK & independent stores in Europe & UK.

Bankers HSBC. £80k overdraft facilities

Trade The 30+ suppliers in China require either deposits & payment prior to shipment or L/C`s. The buyer in the Middle East dictated open account payment terms, although was prepared to support this with a standby credit of $2m. Long manufacturing period necicssated a funding gap which their bank was unable to support due to lack of security. Synergy provided a back to back credit line & took responsibility for issuing the numerous L/Cs to the individual suppliers. This support has enabled the Co to concentrate on design & focus on quality of the products & as a result, sales have doubled from $5m in 2008. Through this success Synergy has taken responsibility for their accounting function & undertakes credit control for worldwide sales & sales invoicing & debt collecting.

Case Study 5.

Business Plant and Machinery Manufactures for Food Processing Industry

Bankers Natwest

Trade Co won a contract for the supply Chocolate Manufacturing Plant to Major Corporate in Nigeria
For GBP784,000.00. The contract involved Stage Payments including APG and shipping documents. Co unfamiliar with LC’s and Nigerian Market. Synergy involvement was to review contract terms, & negotiate amendments directly with Nigerian customer to protect the interests of both parties.

Synergy was given authority to liaise directly with Major importer in Nigeria and their bankers Citibank Nigeria, during the final contract stage, and LC workability to LC issuance.

· Worked with Co and their bankers to issue APG in line with LC terms
· Attended to the shipment from UK to Nigeria
· Produced the shipping docs under the export L/C & presented to UK bank for payment
· Since first project there have been 3 other contracts secured with a further 2 in the pipeline.
· Synergy now consult for Exporter, on all aspect of their International Trade transactions,