UK export finance

Summary

UK Export Finance (UKEF) is the UK’s export credit agency, tasked with supporting British exporters by providing finance and insurance to help them compete in international markets. 

Who is UK Export Finance (UKEF)?

UKEF aims to make sure that no viable UK export fails due to a lack of finance or insurance. It also wants to improve the competitiveness of British exporters, allowing them to expand their global reach and contribute to the UK’s economic growth.

UKEF offers a range of financial products and services designed to address the various needs of exporters. These include export credit insurance to protect against non-payment risks, working capital loans to help businesses fulfil large export contracts, and buyer credit facilities to make UK goods and services more attractive to foreign buyers by providing them with competitive financing options.

Additionally, UKEF provides bond support schemes to help exporters meet the bonding requirements of international contracts. This assistance makes sure that UK businesses can offer the necessary guarantees to secure overseas deals without straining their cash flow.

The agency works closely with banks and other financial institutions to provide these services, leveraging both public and private sector resources to support exporters. UKEF’s support extends to businesses of all sizes, from small and medium-sized enterprises (SMEs) to large corporations, across a wide range of industries.

Example of UK export finance in practice

A small UK-based engineering firm looking to export its products to a new market in Asia might struggle to secure a large contract due to the high upfront costs and the risk of non-payment by the foreign buyer. 

UK export finance could assist the firm by providing an export working capital loan, making sure it has the necessary funds to fulfil the contract. Additionally, UKEF could offer export credit insurance, protecting the firm against the risk of the buyer failing to pay. This support allows the engineering firm to confidently expand its business internationally, secure in the knowledge that financial risks are reduced.