'We're here to help UK exporters. If there is an export opportunity but the private sector won't offer the insurance or guarantees needed, then we try to find a solution.'
David Godfrey, Chief Executive, UKEF
When an exporter gets an order to supply goods or services to a buyer overseas, it can ask to be paid upfront. This is a safe way of exporting because the exporter knows it will get its money before the goods or services are delivered.
This approach might also mean the exporter may enter into fewer export contracts, as the payment terms may not be competitive. As buyers require time to pay, many exports of goods and services are sold on extended credit terms, as much as 180 days. This can have a significant impact on the exporter’s cashflow and introduce an additional working capital requirement. It also exposes the exporter to the risk of non-payment by the buyer.
Exporters can go to their bank for support, or a number of other specialist financial organisations that provide support including trade finance and payment protection including UK Export Finance. Such specialist organisations include trade finance houses, factoring and discounting companies and credit insurance providers.
UK Export Finance
UK Export Finance (UKEF), the UK’s export credit agency, helps UK exporters by providing guarantees and insurance policies that complement those on offer in the private sector; and guidance on sources of export finance. Our network of regional Export Finance Advisers is your first point of contact.
UKEF’s Trade Finance and Insurance (TFIS) Group primarily supports smaller and medium sized exporters through its Export Working Capital Scheme, Bond Support Scheme, Bond Insurance Policy, Letter of Credit Guarantee Scheme and Export Insurance Policy.
UKEF’s Business Group primarily supports export contracts on payment terms of over two years and works alongside UK Trade and Investment in targeting High Value Opportunities overseas.
Find out how UK Export Finance can help you take your business further.
For more information to support you in this part of your export journey:
For more information, contact your local chamber: