For many small and medium-sized exporters in the UK, the challenge is not securing overseas contracts but financing them. The pressure often arrives days after an order is won, when banks point to credit limits that fall short of the working capital needed to fulfil large international deals. What begins as a commercial breakthrough can quickly turn into a financing problem.
That situation confronted Masters Speciality Pharma, a Hertfordshire-based specialist medicines supplier, after it secured two contracts in Saudi Arabia worth a combined £2.3 million. The firm, founded in 1984 and operating in more than 75 countries, was required to fund production and supply costs well before receiving payment from its overseas buyers, placing pressure on its existing facilities with HSBC UK.
The solution came through support from UK Export Finance, which provided insurance against non-payment risk. That backing allowed HSBC UK to increase the company’s lending capacity by raising credit thresholds, enabling Masters Speciality Pharma to deliver the Saudi contracts without disrupting its wider operations.
The arrangement reflects a growing use of government-backed export support aimed at helping British firms access high-growth overseas markets, particularly in the Middle East. UK Export Finance now has capacity to support tens of billions of pounds in trade and has placed renewed emphasis on smaller exporters as part of its long-term strategy.
The Saudi orders included medicines for serious conditions such as sickle cell disease and a specialised antibiotic used to treat severe infections. Both contracts required upfront expenditure on sourcing and production, creating a cash-flow gap that would have been difficult to bridge without additional financing support.
Simon Clarke, chief operating officer at Masters Speciality Pharma, said the firm had reached a typical growth constraint faced by SMEs. “You get a certain amount of credit, but when you hit the ceiling you can go no further,” he said. “The support allowed us to take on contracts that would otherwise have been out of reach.”
HSBC UK also pointed to the importance of the arrangement in enabling cross-border trade. The bank noted that exporters frequently struggle with liquidity when dealing with extended payment cycles, particularly in healthcare and pharmaceuticals where upfront costs are high.
UK Export Finance chief executive Tim Reid said the case demonstrated the wider value of export support beyond economic indicators, highlighting the importance of ensuring access to medicines globally while supporting UK businesses competing overseas.
The Middle East remains a key destination for UK exporters, driven by large-scale healthcare investment programmes and long-term economic diversification strategies. For firms like Masters Speciality Pharma, these markets offer significant opportunity but also heightened financial barriers.
The outcome of the Saudi deal highlights how structured insurance and lending support can determine whether smaller exporters are able to compete internationally. For Masters Speciality Pharma, it has meant successful delivery of contracts, expanded overseas reach, and reinforced confidence in the viability of UK specialist exporters in complex global markets.
