New support launched to free up funds for UK exporters

UK Export Finance has launched a new guarantee scheme that will free up funds for UK manufacturers and cover the costs of international trade.

Exporters in the UK manufacturing industry will be able to apply for finance from the UK’s five largest banks backed by a UKEF guarantee to free up working capital that can be used for everyday costs linked to exports and to scale up their business operations.

This hopes to help thousands of businesses, particularly SMEs, to fulfil multiple export contracts, pay for labour costs, build their inventory and ease cash flow constraints.

Minister for Exports, Graham Stuart, said the government is shaking up the support it provides for internationally focused companies to help bring new trading opportunities to businesses in every part of the country.

Mr Stuart commented: “UKEF’s support for smaller businesses is shifting up a gear. The new General Export Facility will make a huge difference for entrepreneurs who need the financial backing to go global and benefit from our free trade agreements. It will help us bring genuine optimism back to exporters.

“We were the only top ten exporting nation to grow exports last year. I’m determined for that success to continue as we recover from Covid-19. By transforming access to the world’s best export credit agency, we can unlock the entrepreneurial energy needed to make that a reality.”

Financial support can be directly accessed from HSBC, Lloyds Bank, Natwest, Santander and Barclays, the major providers of trade finance in the country, which can put in place UKEF’s guarantee automatically.

Other lenders will be added to the facility in due course to ensure that it is available for as many businesses as possible.

UKEF www.gov.uk/uk-export-finance