Last reviewed 28 July 2020
UK Export Finance (UKEF) has reminded traders that its Export Development Guarantee (EDG) helps UK exporters access high value loan facilities for general working capital or capital expenditure purposes. It can provide partial guarantees covering up to 80% of the risk to lenders for a maximum repayment period of up to five years.
UKEF can consider transactions from a minimum of £25 million with the average value of EDG transactions expected to be between £100 million and £500 million (although more flexibility may be offered in certain circumstances). While the guarantees provided for each transaction will usually support lending in sterling, lending in US dollars, Euros or Japanese yen may also be considered.
The benefits for UK exporters include: the flexibility to bid for multiple contracts with a secure source of working capital; extra financing capability for scaling up existing export activities; and support for investment activities to increase future export activities.
To qualify a firm must be able to show that export sales represent at least 20% of its annual turnover in any one of the last three financial years or that they represent at least 5% of its annual turnover in each of the last three financial years.
The exporter, which must have both premises and employees in the UK, must be carrying on business in the UK, either by manufacturing goods in the UK, delivering services from the UK or providing intangibles from the UK.
Anyone wanting find out more about a UKEF Export Development Guarantee or to discuss eligibility for support, is invited to email email@example.com or call +44 (0)20 7271 8010.