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How can UK Export Finance help my business trade overseas?
05 November 2021

With a mission to “ensure that no viable UK export fails for lack of finance or insurance”, UK Export Finance has been helping businesses trade around the world for over a century.

In this blog, we’re going to learn more about what the department does, and how export finance could help your business succeed.

What is UK Export Finance?

As the UK’s export credit agency, UK Export Finance works with more than 100 private credit insurers and lenders to help British companies access finance – such as loans, insurance policies, or bank guarantees – that enable international trade.

The Government department can support all forms of exports – such as capital goods, services, or even intellectual property – for companies of all sizes and across all sectors.

What are the benefits of UK Export Finance?

Export agreements secured or underwritten by UK Export Finance can support businesses in three ways:

  • Export finance helps firms to win export contracts by providing attractive financing terms to their buyers
  • Export finance helps British companies to fulfil contracts by supporting working capital loans
  • Insurance policies help UK firms get paid by insuring against buyer default.

Real world examples

The Coronavirus pandemic significantly impacted the freight trade, resulting in shipping costs rising to “unprecedented levels”. One company affected by this disruption was Union Papertech, a leading food and drink supplier that exports 50 per cent of its products to markets in Europe and the USA.

The surging shipping costs meant that the firm could no longer access private sector finance for a new export venture.

However, the exporter was able to secure finance through the General Export Facility (GEF) – a UK Export Finance scheme aimed at helping UK businesses access funding to cover the costs of international trade.

The loan enabled Union Papertech to fulfil its trading contract, as well as win two further contracts in India.

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For help and advice with related matters, please get in touch with our team today.

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