New partnership with high street banks set to boost export trade for UK SMEs

UK Export Finance (UKEF), the UK’s export credit agency, has launched a new partnership with five high street banks allowing smaller businesses to access millions of pounds in government-backed trade finance directly from their bank in seconds.

As part of the Department for International Trade, UKEF provides financial support to help UK companies sell to international customers.

This new partnership with Barclays, HSBC, Lloyds, RBS/NatWest and Santander, comes as the Board of Trade met for the first time last week (12th October).

Companies which supply exporters can now access UKEF-backed finance, helping them become part of export contracts and spreading the benefits of trade to SMEs across the UK.

Liam Fox, Secretary of State for International Trade, said: “Small businesses are the backbone of our economy, and giving them the support they need to seize international trading opportunities is a priority for the Department for International Trade as an international economic department.

“That’s why we’re partnering with the five major high street banks to make government-backed finance from UK Export Finance readily available in a matter of seconds, opening up new global contracts to businesses across the UK.”

UKEF provides guarantees to banks to help businesses access bank finance, even where they’ve reached their credit limit or where the deal is considered too risky for the banks to take on alone.

With this new partnership for finance up to £2m, SMEs can access UKEF support directly from their bank without the need to apply separately. The bank will just have to notify UKEF through a new secure digital platform.

As a result, where previously it could take weeks in addition to the banks’ own turnaround times to access this support, it will now take a matter of seconds where the transaction is eligible.

This partnership will allow UK SMEs to access the funds they need to increase their exports, grow their revenue and sell British products around the world just by speaking to their bank manager.

Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), commented: “Through our work with the Secretary of State for International Trade, I am delighted to see the Government’s plans to improve access to export finance.

“The success of the UK economy rests on helping more small businesses to export, and export more. FSB research shows 20% of UK small firms already export, and with the right support this could double.

“Today’s announcement of faster and more readily available finance means more small businesses will be able to access growth markets around the world.

“Small firms’ contribution to the UK’s export market is of course not limited to those that sell products overseas. Our research highlights that one in six of all UK small businesses also form part of a supply chain of which the end product is exported, so opening up export finance to this group of firms is great news.”