By June 20, 2019 Read More →

Smaller exporters set to benefit from financing

Smaller exporters in the UK space sector can now benefit from increased support after UK Export Finance (UKEF) introduced changes that mean a more relaxed line on supporting projects led by overseas contractors. As long as there is at least 20% UK content – an essential aspect for financing – UKEF will now consider applications from lead contractors outside the UK.

Peter Maplestone, UKEF senior underwriter for space says that this will facilitate projects that support smaller exporters and sub-contractors. “It opens the door to help companies further down the supply chain,” he adds.

The mission of UKEF is to ensure that no viable UK export fails for lack of finance or insurance from the private sector, while operating at no net cost to the tax payer. “We support any form of export as long as there is a return for the UK,” says Mr Maplestone. UKEF helps UK exporters to win contracts by providing attractive financing terms, and to fulfil orders by supporting working capital loans. It also works to ensure that UK exporters get paid by insuring against buyer default.

UKEF can give overseas buyers attractive long-term financing, giving UK exporters a more competitive offering. It can provide support through guarantees of up to 85% to banks, and through direct lending to overseas buyers that source from the UK. Flexible financing options include Islamic finance, local currency financing, long terms of 2-10 years and capital markets refinancing.

Further, UKEF can help UK companies access working capital to fulfil a contract, giving them the ability to take on more contracts and increase their turnover. This includes guarantees of up to 80% to

UK companies’ banks who lend working capital for export orders under the export working capital scheme (EWCS) and guarantees of up to 80% to UK companies’ banks for contract bonds under the bond support scheme (BSS).

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