UK export finance (UKEF) will launch a new guarantee program today that will free up funds for UK businesses to cover the costs of international trade, supporting thousands of jobs and livelihoods across the country.
Exporters will be able to apply for financing from the UK’s five largest banks, backed by a UKEF guaranteed to free up working capital that can be used for day-to-day export costs and to develop their business activities. This will help thousands of businesses, especially SMEs, fulfill multiple export contracts, pay labor costs, build up inventories, and ease cash flow constraints.
Exports Minister Graham Stuart will launch the General Export Facility (FEM) in a speech to UKEF“Forum on Trade and Export Finance”. He will announce that the government is changing the support it provides to internationally focused businesses to help create new business opportunities for businesses in all regions of the country.
Exports Minister Graham Stuart will say: “UKEFSupport for small businesses is shifting into high gear. The new General Export Facility will make a huge difference for entrepreneurs who need financial support to go global and benefit from our free trade agreements. This will help us restore real optimism to exporters. Last year, we were the only exporting country in the top ten to increase its exports. I am determined that this success will continue as we recover from Covid-19. By transforming access to the world’s best export credit agency, we can unleash the entrepreneurial energy needed to make it a reality.
Financial support is directly accessible from HSBC, Lloyds Bank, Natwest, Santander and Barclays, the main providers of trade finance in the country, who can set up UKEFthe guarantee of automatically.
Other lenders will be added to the facility in due course to ensure that it is available to as many businesses as possible.
Commenting on the program, UK Finance Managing Director Stephen Pegge said: “Supporting UK exporters at this time is vital, which is why UK Finance and five of the major export lenders have been working closely with UKEF on the development of this new guarantee scheme. We expect businesses to apply starting in the new year, as the General Export Facility allows lenders to support an even wider range of small and medium-sized businesses, giving businesses the confidence to win new business. by setting up an agreed revolving facility. “