UK Export Finance

 

UK Export Finance (UKEF) is the UK’s export credit agency and a government department, working alongside the Department for International Trade. Having finance and insurance backing from HM Government through UKEF gives you the edge you need to win and fulfil contracts and withstand risk of non-payment in international markets. To do this, UKEF supports exporters to: 

  • access export finance
  • manage payment risks
  • win export contracts by offering competitive terms to buyers

UKEF works with banks and other financial institutions to support exports for any size of company and across all sectors, from capital goods to services and intangibles such as intellectual property.

Access to export finance

If the terms of a contract require a bond, such as performance guarantees or advance payment guarantees, UKEF’s Bond Support Scheme can guarantee a UK exporter’s bank up to 80% of the bond’s value, significantly reducing the size of the deposit needed.

For Wyedean Weaving, UKEF support meant their bank was able to provide a performance guarantee, meaning the company could fulfil their order without restricting cashflow. This meant the company stayed on track to increase their revenue by £1.2million over the next three years.

UKEF’s Export Working Capital Scheme can partially guarantee to cover the credit risks for lenders associated with facilities allowing the exporter to access greater levels of export working capital. This means UK companies can export if they win a contract higher in value than usual, or win more overseas contracts than usual.

When Leeds manufacturer Meltog secured an order with a new customer, the company found that the value of the contract could lead to cashflow pressures so UKEF worked with Meltog’s bank to find a solution. The company received a £90,000 working capital loan from their bank, guaranteed by UKEF, which meant Meltog could fulfil the order while financing the rest of their business.

UK suppliers to exporters can now also access government-backed finance, spreading the benefits of trade to SMEs across the UK. Supplying to an exporter supports smaller companies to get products into new markets and UKEF financing can help secure contracts so suppliers can benefit from worldwide demand for UK goods and services.

This extension of our export finance offer meant UKEF could provide a bond guarantee to Green’s Power, which won a supply contract with a UK energy company in 2015. This allowed Green’s Power to retain the working capital needed to finance other orders while delivering a key component for the energy company’s exports to Africa.

Managing payment risks

UKEF helps exporters manage the uncertainties of trading overseas. Export insurance is readily available in most cases from the commercial sector but for some markets securing the right cover can be a challenge.

UKEF's Export Insurance Policy protects exporters against non-payment under certain conditions, such as country risk.

When their existing provider stopped offering export insurance for one of their trading markets, Lye Cross Farm were at risk of losing a valued customer. UKEF worked with Lye Cross Farm to tailor a new export insurance policy to their requirements, securing business for the future and maintaining its reputation for quality and reliability with international customers.

 

Find out more about UKEF’S products and services and read success stories for real-life examples of UKEF support.

 

UKEF has a regional network of Export Finance Managers to help you find solutions to your export finance challenges. Contact UKEF on 020 7271 8010 or email to find out if they can help your business.

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