UK Export Finance helps 650 UK businesses to sell overseas

UK Export Finance gave £8.8 billion in fresh funding last year, aiding 650 UK businesses to sell their products overseas.

UKEF's financial support for UK exporters has helped create up to 41,000 jobs and contributed £3.3 billion to the national GDP.

Highlighted in UKEF's latest yearly report covering 2023 to 2024, assistance for British companies plays a crucial role in boosting the economy and creating new chances for growth throughout the nation.

In the fiscal year 2023/24, UK Export Finance (UKEF) backed £8.8 billion in support for hundreds of UK businesses, helping them thrive.

UKEF is the export credit agency of the UK government, offering financial support such as loans, guarantees, and insurance to assist companies in expanding their sales globally.

UKEF helped 650 UK companies secure export contracts in the previous financial year, which means almost two businesses received important export financing every day.

It is believed that the businesses supported by UKEF, along with their suppliers, contribute approximately £3.3 billion to the UK's GDP and sustain around 41,000 full-time equivalent jobs.

More than half of the companies helped by UKEF were small and medium-sized businesses (SMEs), thanks to the agency's efforts to make its trade finance options more available. In the previous year, UKEF raised the amount and duration of financing that could be quickly approved for lenders participating in specific guarantee programs.

UKEF supported 80% of small businesses outside of London with a product, showing their dedication to providing growth opportunities across the UK.

In recent years, UKEF has introduced two products that provide exporters with a surefire way to secure financing that may have been difficult to obtain otherwise.

The Export Development Guarantee has assisted businesses such as SeAH Wind UK and UK-listed PLC Trifast in accessing substantial loan facilities to aid in their investments and job creation. With the help of UKEF, SeAH is currently constructing a massive factory to aid in the production of wind turbines, while Trifast, a company specializing in industrial fastenings, will soon be able to establish a 75,000 square foot distribution center in the Midlands.

The General Export Facility (GEF) provided more than £575 million in financial assistance to UK businesses in the year 2023/24, setting a new record. UKEF also increased the number of lenders eligible to provide funding with a GEF guarantee.

UKEF's global reach was further enhanced by a dedication to sustainable funding. In the previous year, UKEF made history as the first ECA to provide climate-resilient clauses in debt agreements, allowing small island nations and low-income countries to temporarily halt repayments in response to climate-related disasters. Additionally, in December 2023, UKEF joined forces with other ECAs as a founding member of the Net Zero Export Credit Alliance, a group focused on reducing carbon emissions in export finance.

Tim Reid, CEO Of UK Export Finance, Shares Insights

UKEF plays a vital role in assisting UK businesses overcome any financial obstacles that could hinder their plans to export goods.

Our findings from 2023 to 2024 indicate that we are meeting this challenge head-on, providing the most support to UK businesses since the COVID pandemic ended. We have also secured the largest amount of financing ever through our GEF product, which is crucial to our services for small businesses.

These accomplishments are an integral part of the government's efforts to maintain a strong and thriving economy.

Although UKEF's funding is not targeted towards particular export deals, it did provide a significant amount of support for contract-specific transactions with African customers (£1.3 billion), as well as with customers in the Middle East (£419.5 million) and Indo-Pacific region (£376 million). This highlights the robust trade relationships between these areas and the UK.

British Exporters Association VP Discusses Strategies

The UK economy needs international trade to grow. To help UK businesses export, we need a government that prioritizes trade. We are happy to see that UKEF is still achieving great results.

Their assistance in offering financial services to exporters and their foreign clients is crucial in creating a low-risk setting for UK businesses to engage in exporting.

BExA is happy to see that small and medium-sized businesses are still receiving strong support, as getting financing is often mentioned as a challenge for exporting. We and our members are excited to keep collaborating with UKEF to reach the goals outlined in their business plan and to improve and expand their range of products to boost UK exports.

Marco Forgione, Head Of The Institute For Export & Int. Trade, Stated

British companies have a lot of opportunities to succeed globally because of their high standards. That's why the Chartered Institute of Export & International Trade works hard to support businesses by giving them the expertise and tools they need to trade efficiently, responsibly, and competitively on an international scale.

Facilitating secure global trade and assisting UK companies in broadening their international reach is vital for boosting the UK economy. The recent annual report from UKEF is a positive indication that the government remains committed to prioritizing support for exporters of all scales.

UKEF recently introduced its latest Business Plan for the period of 2024-2029, setting out bold goals to expand its support efforts by 2029. The department aims to provide assistance to more than 1,000 small and medium businesses annually by the end of the decade.