NewsCase StudiesEvents

Boost for exporters and banks as UK Export Finance increases risk underwritten

Also in the news...

7 Steps to Starting a Successful Business in College

Many students consider starting a business in college, inspired by the paths of successful people and the many opportunities available. Although various nuances may prevent you from achieving this, results orientation and perseverance will allow you to move mountains.

7 Popular Gibraltar Startup Companies

Though small, Gibraltar is a burgeoning hub for innovative startups. This British Overseas Territory has become attractive for entrepreneurs due to its favourable tax laws and business-friendly environment. Here, we explore seven popular startups significantly impacting their respective industries.

How AI Fashion Models are Changing the Product Modelling Business

Artificial Intelligence (AI) is revolutionizing various sectors, and the fashion industry is no exception. AI fashion models and the utilization of AI-generated images to showcase products represent a futuristic trend blending technology with creativity. This article delves into how AI is transforming fashion presentations, the benefits of this innovation, and potential future developments.

Navigating Tech Challenges in Global Expansion - Solutions for Startups

When you're steering your startup towards international waters, the thrill of tapping into new markets is often mingled with the challenge of navigating tech hurdles. From ensuring seamless operation across time zones to adapting to local regulations, the tech aspect of global expansion can seem daunting.

Guidance Living in Egypt

Information for British citizens moving to or living in Egypt, including guidance on residency, healthcare and employment.

Boost for exporters and banks as UK Export Finance increases risk underwritten

Back to News

The news that UK Export Finance will increase the risk it underwrites from 50% to 80% across its Bond Support and Export Working Capital schemes, will enable banks to assist more exporters seeking to maximise opportunities in international trade.

At a breakfast event at the Institute of Directors, representatives from a wide range of banking organisations reacted positively to a raft of developments outlined by David Godfrey, Chief Executive of UK Export Finance, which supports small and medium-sized enterprises (SMEs) and mid-market exporters by sharing financial risks that the private sector is unable to shoulder alone.

Since 2011, UK Export Finance, the UK’s export credit agency, has broadened the trade horizons of over 120 UK-based businesses. Backing almost £1 billion of export contracts to over 65 markets and with a pipeline of a further 300 transactions.

In addition it has given financial advice to over 250 exporters through its 12-strong team of regional export finance advisors who signpost exporters and businesses to banks, credit insurers, brokers, trade support bodies and routes to government support.

A recent NAO report entitled ‘Improving access to finance for small and medium-sized enterprises’ forecasts a potential £22 billion funding gap between the level of finance available to SMEs and the amount they need. Mr Godfrey said:

The role of the export credit agency is even more critical in today’s market. Forging and sustaining powerful partnerships and collaborations between ourselves and banking organisations will be instrumental in achieving the Government’s goal to double exports to £1 trillion by 2020. Exports are vital to the UK’s future growth and we are committed to playing our part in plugging the finance gap to accelerate opportunities for those with the potential to take their business further.

Willie McCoy, Bank of Ireland senior manager of trade finance, commented:

UK Export Finance’s commitment to increase its risk to 80% on most transactions is a formative milestone. The balance sheets of some exporters seeking access to bonds and guarantees are not currently strong enough for banks to approve.

Many businesses need pre-shipment finance and bonds - this development enables banks to access bonds and guarantees and the Working Capital Scheme. The timing is key with the UK’s focus on exporting as a driver of economic growth.

Peter McIntyre, HSBC Head of Trade for UK Commercial Banking, reinforced how collaboration is vital as the world looks to exporters to lead the financial recovery:

We will continue to harness UK Export Finance’s schemes as our international portfolio grows faster than our domestic portfolio. Supporting aspiring exporters with a wealth of diversity and growth opportunities will pay dividends for banks, exporters - and the wider UK economy.

gov.uk

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.