UK Government schemes
UK Government schemes
UK Government Schemes - joint initiatives to support exporters
The Government through the Export Credits Guarantee Department (ECGD) provides a range of support schemes to help UK businesses obtain funding for their exporting activity. This is particularly helpful if a business is experiencing difficulties securing required funding, possibly due to a lack of financial collateral.
Below is a short guide to government support. More information can be obtained by contacting us using the 'Get in touch' contact information.
- Letter of Credit Guarantee Scheme
- Supplier Credit Financing Facility
- Buyer Credit Facility
- Bonds Support Scheme
- Export Working Capital Scheme
Enterprise Finance Guarantee Scheme
(provided by the Department for Business, Innovation & Skills)
Letter of Credit Guarantee Scheme
When a foreign buyer pays a UK exporter via a Letter Of Credit, the exporter may ask a UK bank to 'Confirm' (or effectively guarantee) the payment. In certain circumstances the bank may need extra reassurance to issue the Confirmation. Under the above scheme, ECGD will consider guaranteeing part of the transaction, enabling the bank to help the exporter with its sales order.
Supplier Finance Guarantee Scheme
A UK exporter may want to increase its chances of securing contracts with foreign buyers by offering the option of extended payment terms. Banks will consider financing this period for the 'end client' but in certain circumstances may need additional reassurance that it will be repaid. The ECGD Supplier Credit Financing Facility provides a guarantee to the bank for the purchase of capital goods and/or services, worth at least £25,000.
Buyer Credit Facility
Under this facility, ECGD provides us a guarantee to enable us to make a loan to your overseas buyer to finance the purchase of capital goods and/or services, worth at least £5 million from an exporter carrying on business in the UK. You as a UK exporter can be paid as though it is a 'cash' contract.
Bonds and Guarantees Support Scheme
When exporters are required to obtain a tender or contract bond from their bank, the ECGD will share the risks of issuing these. This enables UK exporters obtain more easily the support they need from RBS to secure export contracts.
Export Working Capital Scheme
ECGD have launched this scheme to facilitate exporters' access to working capital finance, for specific export contracts, by sharing risks with the banks. While there is no minimum value for the working capital facility, the total value of the export contract should normally be greater than £1m.
Enterprise Finance Guarantee Scheme - Extension for Exporters
(provided by Department for Business, Innovation and Skills)
The Enterprise Finance Guarantee (EFG) is a loan guarantee scheme intended to facilitate additional bank lending to viable enterprises with insufficient or no security with which to secure a normal commercial loan. Historically, UK companies could not apply for this for the purposes of international trade. This has now changed and the scheme will support export trade loans and working capital finance (but not overdrafts), invoice finance facilities, bonds and guarantees.
