Member Article

New export finance deal to help regional firms secure buyers

A new range of lending products will be available to the region’s exporters following George Osborne’s outline of £3 billion extra funding in the Budget.

UK Export Finance (UKEF), the Government agency that protects British firms from not being paid for their exports and finance export buyers, has been given greater resource to provide finance.

The body will increase its number of export finance advisors in the region to offer SMEs direct support, and boast a beefed up set of tools to help potential exports.

Current legislation constrains the type of financial products that UKEF can offer, but forthcoming changes will mean the agency can provider a more comprehensive range of products to suit different export situations.

The products will provide insurance for exporters, working capital and support for contract bonds.

Steve Dodgson, Business Group director at UKEF, explains that the Chancellor’s £3 billion announcement relates to new exchequer funding of loans to buyers of UK exports.

Steve explained to Bdaily: “These new measures mean an exporter in the North East can find a buyer for their goods and services, and request a loan from UKEF to the buyer - where this may not be possible through the bank.

“This really is a big announcement as it means there is more money in the system to finance exports.”

The next step for Steve and his team is to raise awareness of the agency and its work, to make sure regional exporters are savvy to the tools at their disposal.

Steve added: “The announcements in the Budget and recent developments with the agency now mean we have a really good toolkit to help regional exporters.

“Where firms are unable to get private sector finance, we will be able to plug that gap - across all sectors, from services to manufacturing.

“This is all part of the Government’s strategy to reduce dependence on the financial services industry and get our manufacturers exporting - particularly across markets in Europe and North America.”

More information on UK Export Finance is available here.

This was posted in Bdaily's Members' News section by Tom Keighley .