UK Export Finance unveils extra support for SME exporters
27/11/2023
The government’s export credit agency UK Export Finance (UKEF) has introduced more flexible, fast-track financing for small businesses with the aim of making it easier for UK firms to sell in international markets.
The export credit agency has expanded its ‘auto-inclusion’ scheme which provides fast-track access to trade finance products like the General Export Facility. This means that small businesses can now access more government-backed credit more quickly without manual intervention from UKEF.
The maximum support which UKEF can offer under auto-inclusion has doubled from £5m to £10m, meaning that UK exporters can access more support with a simple request through a participating bank.
The maximum tenor for loans under the General Export Facility has also increased from two to five years.
The scheme, which guarantees up to 80% of a loan facility, has been used by firms such as the branded children’s clothing company Character.com, reported The Times. The Swansea-based firm secured a £3m loan from Barclays two years ago to help it to fund the cashflow demands of exporting more of its children’s clothing and pyjamas, the newspaper said.
UKEF also unveiled a new partnership with HSBC India to support UK exporters to enter India. The two organisations are working together to establish a financing programme under UKEF’s Standard Buyer Loan Guarantee (SBLG) programme, which would unlock up to £100m in potential loans allowing Indian buyers to purchase UK goods and services.
UKFT would like to hear from members about their experience using this service. Please let us know whether the service was useful to you and whether you were able to get financial support from UKEF so that we can speak to government to make improvements as necessary. Email info@ukft.org with your experience and comments.