UK Export Finance support schemes
UK Export Finance (UKEF) schemes can be used to provide additional support to exporting businesses, above the level which might otherwise be available.
UKEF is the UK government’s export credit agency which provides a range of products to support UK exporters. This includes schemes designed to strengthen a lender’s credit appetite, increasing lending capacity for exporters and the export supply chain. These schemes can provide the bank with a partial guarantee of up to 80% of the exporter’s bank facility for trade finance products for up to 5 years. Two such schemes Santander can access are:
General Export Facility
For exporters with a solid trading history of exporting. The scheme can be used to provide facilities covering the full range of trade finance products (such as trade loans, bank guarantees/standby letters of credit, documentary letters of credit). These products may then be used for export and non-export purposes.
Bond & Export Working Capital support scheme
For exporters or direct suppliers to exporters, who are aiming to fulfil an export contract, irrespective of their export trading history. The scheme can be used to provide cover for the issuance of contract bonds, (in the form of bank guarantees and standby letters of credit) or to finance working capital (pre or post shipment) against specific eligible export contracts. The products under this scheme must be used only in relation to the export contract.
Is my business eligible?
To be eligible to be considered your business must:
- Be based in the UK
- Have a sound borrowing proposal
- For the General Export Facility scheme, you must be able to certify that:
- at least 20% of your turnover has been made up of UK export sales in any one of the last three financial years or 5% in each of those years; and
- the goods/services you provide are of UK origin and/or are not solely produced/conducted outside of the UK.
For the Bond & Export Working Capital scheme, you must:
- as an exporter, have entered, or be intending to enter, into a contract for the supply of goods/services with a company outside the UK, or as a direct supplier to an exporter, you must have a supply contract that qualifies as export-related; and
- you must be able to certify that that no more than 80% of the value of your contract is made up of goods/services procured from outside the UK.
If you are an exporter and would like to find out whether the UK Export Finance scheme or another trade finance solution might be suitable for your business, please contact your relationship team or contact us.
These UK Export Finance schemes provide a guarantee to Santander UK plc and not to you or your business. These are government backed guarantee schemes, however, your business will always remain responsible for repayments of the whole of the debt.
Please note that all lending is subject to status and the right to decline any application is reserved.