However, there may be another way to fund your business through the UK Export Finance (UKEF) product offering, particularly if you are a growing business.
There are a number of ways UKEF may be able to help, we will focus on The General Export Facility, which has already helped a number of businesses.
The General Export Facility (GEF) provides partial guarantees to banks to help UK exporters to gain access to trade finance facilities. The working capital requirement does not even have to be export related, as long you have recently exported you may qualify.
The qualification requirements are:
The business must be UK based and goods and services provided from the UK.
UKEF provides an 80% guarantee to the lender, de-risking the lender so their exposure is just 20% of the debt. How the lender decides to manage this risk is up to them.
The guaranteed bank pays UKEF a guarantee fee, which is a proportion of the interest margin paid by the business.
To apply a business needs to approach one of the six lenders currently signed up to the scheme (preferably one where there is an existing relationship). The lenders are:
UKEF can help in a variety of ways explained in more detail in UK Export Finance’s publication.
Speak to Julie Mole, Debt Advisory Director, with her knowledge of the scheme she can reach out to UKEF on your behalf.
This flowchart will help you to understand the support that could be available to you through UK Export Finance.