Support for Exporters: Standard Buyer Loan Guarantee
March 11, 2021
UKEF overhauls buyer finance support to boost SME exports
UK Export Finance has launched a new guarantee scheme that will help overseas buyers of UK goods and services access finance to help unlock trade and increase exports. Under the Standard Buyer Loan Guarantee (SBLG), loans of up to 85% of the value of a contract with a UK exporter will be guaranteed. Typically these will be worth between £1 million and £30 million. This will ensure that UK businesses get paid upfront to fulfil an export contract and the overseas buyer can repay the loan over a longer period.
UK Export Finance (UKEF) today launches a new guarantee scheme that will help importers of UK goods and services obtain the financing they need, unlocking trade and boosting exports.
The Standard Buyer Loan Guarantee (SBLG) allows UKEF to guarantee a loan of up to 85% of the contract value, with a UK company – typically worth between £1 million to £30 million.
As part of an overhaul to make UKEF’s buyer credit support more accessible, this ensures UK businesses get paid upfront to fulfil an export contract while their overseas buyers can repay the loan from their lender over a longer period.
Coronavirus has hit global supply chains hard with overseas buyers struggling to access the capital they need to import goods and services, restricting trade. That’s why UKEF is working with a range of new lenders to issue loans backed by the SBLG.
This means UKEF’s financial support can be accessed more easily, particularly to finance smaller contracts to benefit SMEs, which will help stimulate demand for UK trade and propel economic growth as the country builds back stronger from the pandemic.