UK Export Finance (UKEF) has launched a new guarantee scheme that will help importers of UK goods and services obtain the financing they need, unlocking trade and boosting exports.
The Standard Buyer Loan Guarantee (SBLG) allows UKEF to guarantee a loan of up to 85% of the contract value with a UK company – typically worth between £1m to £30m.
As part of an overhaul to make UKEF’s supplier credit support more accessible, this ensures UK businesses get paid upfront to fulfil an export contract while their overseas buyers can repay the loan from their lender over a longer period.
Coronavirus has hit global supply chains hard with overseas buyers struggling to access the capital they need to import goods and services, restricting trade. That’s why UKEF is working with a range of new lenders to issue loans backed by SBLG.
This means UKEF’s financial support can be accessed more easily, particularly to finance smaller contracts to benefit SMEs, which will help stimulate demand for UK trade and propel economic growth as the country builds back stronger from the pandemic.
Minister for Exports, Graham Stuart, said: “The UK is one of the world’s top five exporting nations, supporting well-paid jobs in every region and nation across the country. We are determined that this should continue, so this new scheme from our world-leading export finance agency, UKEF, will help our exporters reach buyers they would otherwise miss – and build back stronger from the pandemic.”