Making exports happen: connecting the UK to international markets
Published 31 August 2018
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UK Export Finance (UKEF) exists to ensure that no viable UK export fails for lack of finance or insurance from the private sector.
We are a government department and the UK’s export credit agency, complementing rather than competing with the private sector.
So why not get in touch and realise the opportunities out there for you?
Contact our national customer service helpline: +44 (0)20 7271 8010 or email customer.service@ukexportfinance.gov.uk
Louis Taylor, Chief Executive Officer, UKEF:
UK Export Finance can help UK companies take advantage of the global marketplace with specialist guidance, finance and insurance designed to help you sell overseas.
1. There is a world of opportunity out there
Finding customers outside the UK is the key to growth for many UK firms as they look to take advantage of a global market place. On average, firms that start exporting grow by a third in just two years.
But when the world needs your expertise, you may need ours.
UKEF helps companies:
- win export contracts by providing attractive financing terms
- fulfil orders by supporting their working capital
- make sure they get paid with export insurance.
We help UK-based exporters of all sizes, in all sectors, export to over 200 countries. We work hard to understand each customer and tailor our support to provide the most appropriate solution.
UKEF is part of an exporting movement. In government we are part of the Department for International Trade (DIT), operationally and strategically aligned with our trade promotion colleagues at home and abroad. We also work closely with the Scottish Council for Development & Industry, Business Wales and Invest Northern Ireland to ensure that exporters from across the UK receive the full range of government support available.
And we work with over 70 commercial partners, including banks, alternative finance providers and insurance brokers, to help deliver our support when and where it is needed.
1.1 Talk to your local export finance manager
They can provide you with a free and impartial consultation. It will help you check you are getting the appropriate support and, if not, we can explore how to bridge any gaps.
Contact customer.service@ukexportfinance.gov.uk or visit www.gov.uk/uk-export-finance
2. Helping to make exports happen
Over the past five years, UKEF has provided over £15 billion worth of finance and insurance to help exporters across the UK sell to over 200 countries. Here are just a few examples of how they have benefited from our support.
2.1 Ghana – strength in numbers
NMS International is leading a consortium of UK small and medium-sized firms building seven hospitals in Ghana, thanks to a buyer loan guarantee from UK Export Finance.
2.2 Brazil – protecting you from risk
UKEF provided export insurance to ES Global Solutions to ensure that it received payment for a £400,000 track for pre-Olympic testing on the celebrated Copacabana beach in Brazil.
2.3 United Arab Emirates – backing construction
When Kier Group bid for a contract to develop part of Dubai’s Bluewaters Island site, UKEF was able to support Meraas Holding, the project sponsors, with a US$317.9m loan, helping Kier win the tender.
2.4 Germany – securing cash for growth
Dudley-based Glasscoat International was able to secure the working capital it needed to fulfil two lucrative export contracts to Germany and Austria.
2.5 Israel – help in a complex market
Our Export Finance Manager was able to help Northern Ireland-based Environmental Marketing Solutions access finance from the private sector, helping it export equipment to Israel.
2.6 China – historic currency boost
Thanks to UKEF, China Southern Airlines was able to access a UK governmentguaranteed loan in offshore Renminbi to purchase an Airbus aircraft.
2.7 Lesotho – support for services
When Buro Happold Engineering could not find insurance against non-payment in the private sector, UKEF was able to provide insurance, enabling it to take on a major new engineering consultancy contract in Lesotho.
2.8 Australia – powering up
A flexible working capital facility, backed by UK Export Finance, enabled Hertfordshire-based Esprit Digital to fulfil its biggest contract supplying display screens to Westfield.
3. Export finance explained
3.1 Win export contracts
The attractive financing terms UKEF can offer to overseas buyers of UK goods and services can help exporters make their offering more competitive.
International business development:
We have a dedicated international team who, working with partners across government, can help raise awareness of UKEF’s competitive finance offering with your overseas buyers.
Direct lending facility:
UKEF can also lend directly to allow your overseas buyers to purchase goods and services from the UK.
Buyer and supplier credit facilities:
Banks can provide loans to exporters or overseas buyers to help fund extended payment terms of 2-10 years, and in some cases up to 18 years. UKEF provides a guarantee to your bank so it can do this. These loans involve stage payments – this means you’ll receive payments in line with your contract and your buyer will be given credit to pay over an extended period. Guarantees can be used to support loans in over 40 local currencies.
3.2 Support your working capital to fulfil contracts
UKEF can help companies access the working capital they need to fulfil a contract, giving them the confidence to take on more contracts and increase their turnover.
Export finance guidance:
UKEF’s regionally-based network of Export Finance Managers can provide companies looking to sell overseas with face-to-face guidance on finance and insurance, whether directly from banks and insurance brokers, or from the UK Government.
Export working capital scheme:
Your bank can lend you the working capital you might need to deliver an export contract. UKEF can provide a guarantee to your bank so they are able to do this.
Bond support scheme:
If you need a contract bond, your bank can issue one to your overseas customer. However, banks will often require collateral to secure the bond. UKEF can provide a guarantee to your bank to release the cash needed to secure the bond for you to use as working capital.
3.3 Making sure you get paid
We can help exporters manage risks in challenging markets, ensuring that they get paid even where the private market is not able to offer insurance.
Export insurance policy:
UKEF provides an insurance policy that covers you against not being paid under your export contract. The policy covers costs incurred should the export contract be terminated because your buyer defaults before the goods are delivered, or if they fail to pay due to specified political, economic or administrative events.
Letter of Credit Guarantee scheme:
Letters of Credit are one of the safest ways to make sure you get paid. UKEF provides a guarantee to your bank so they can confirm a Letter of Credit.
Bond insurance policy:
UKEF can provide an insurance policy to protect you against a demand for payment under a bond which is either unfair or caused by political events.