For many British small and medium-sized exporters, the challenge is not securing overseas orders but finding the financial headroom to deliver them. A contract can quickly become unworkable when banks tighten credit limits, leaving firms unable to fund production despite confirmed demand.
That pressure point was recently faced by Masters Speciality Pharma, a 41-year-old Hertfordshire-based pharmaceutical company, after it secured two export contracts in Saudi Arabia worth £2.3 million. The company turned to UK Export Finance (UKEF), which provided insurance backing that enabled HSBC UK to expand its lending facilities and support delivery of the deals.
The arrangement ensured the bank was protected against non-payment risk, allowing additional working capital to be released without exposing lenders to greater uncertainty. That support proved decisive in allowing the company to fulfil its obligations without straining its wider operations.
Founded in 1984 by Dr Zulfikar Masters OBE and based in Elstree, the firm supplies hard-to-source medicines to more than 75 countries across the Middle East, Africa, Asia and Latin America. Its focus is on treatments often overlooked by larger pharmaceutical companies but essential in emerging healthcare markets.
The Saudi contracts included supplies for sickle cell disease treatment and a specialised antibiotic used in severe infections. Both required upfront manufacturing and procurement costs, while payment from buyers was scheduled later, creating a financing gap that exceeded the company’s existing credit limits.
UKEF’s intervention bridged that gap. By underwriting HSBC UK’s exposure, the agency enabled the bank to extend additional credit, ensuring production and delivery could proceed on schedule. The mechanism is part of a wider push by the government-backed body to support more UK exporters, particularly small and mid-sized firms seeking growth in overseas markets.
UKEF currently has authority to support up to £80 billion in export activity and has set a target of generating £12.5 billion in new contracts for UK businesses by 2029. The Middle East, particularly Saudi Arabia, remains a central focus due to strong demand in healthcare and infrastructure sectors.
Tim Reid, chief executive of UKEF, said companies like Masters highlight the value of government-backed export insurance. He said the organisation is committed to supporting UK exporters of all sizes as they pursue opportunities globally, particularly in fast-growing regions.
At HSBC UK, which already works with Masters in multiple markets, the partnership with UKEF was seen as a practical way to support international expansion while managing risk. Bank officials noted that working capital constraints remain one of the biggest barriers for exporters handling large overseas orders.
For Masters Speciality Pharma, the outcome was the successful delivery of both contracts and continued access to international markets. The case highlights how targeted financial support can determine whether UK exporters are able to turn overseas demand into completed business.
