By Patrick Crawford of UK Export Finance

Patrick Crawford of UK Export Finance explains how the organisation is expanding the range of support it provides to exporters.

Exporting is good for business growth and the wider economy. But the reduced availability of trade credit insurance and trade finance from banks has resulted in UK Export Finance (UKEF) stepping into the breach and increasing the support it provides to exporters.

What we can offer

UKEF was previously focused on supporting large capital goods exports and related services with insurance and loan guarantees. However, since 2011 it has widened its role to support export contracts of all sizes and in all sectors. Its new range of products include the following.

  • Revamped insurance policy – providing exporters with cover against the risk of, for example, specified political or buyer-related events preventing payment, encumbering performance or leading to the termination of a contract.
  • Bond Support Scheme – offering a partial guarantee to the bank on the exporter's behalf (of up to 80% of the value on cash-related bonds), freeing up funds to carry out the export contract.
  • Export Working Capital Scheme – helping exporters gain access to working capital finance (both pre and postshipment). It offers a partial guarantee to the bank on the exporter's behalf (of up to 80% of the value, in some cases).
  • Foreign Exchange Credit Support Scheme – helping UK exporters gain access to forward foreign exchange hedging facilities for export contracts that are being guaranteed under the Working Capital Scheme.

Who can help

Smith & Williamson and other service providers, as well as trade and representative bodies, are helping to make exporters aware of these new products.

To make this support more accessible to SMEs, UKEF is appointing 12 export finance advisers to work alongside UKTI in the English regions and the equivalent bodies in Northern Ireland, Scotland and Wales to help businesses navigate the array of options for insuring or financing their export contracts. Eleven advisers have already been appointed covering Northern Ireland, Scotland, North-East England, Yorkshire and the Humber, North-West England, West Midlands, East Midlands, East of England, London, South-East England and South-West England.

Most of the needs of exporters should continue to be met by private sector providers but, if and when there are gaps in the commercial support available, UKEF may be able to step in and help.

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