UK Export Finance (UKEF) has partnered with five major banks to support small and medium-sized enterprises (SMEs) involved in exporting.
The deal will see UKEF partner with Barclays, HSBC, Lloyds, RBS Group (RBS and NatWest), and Santander to allow SMEs to access financial support through them.
These smaller companies that support larger exporters will be able to secure finance backed by government through the scheme, as a result of UKEF extending its support through the export supply chain.
International trade secretary Liam Fox said: “Providing easily accessible finance, backed by UKEF’s guarantee, will lift a common barrier to exporting.
“Providing that finance to suppliers as well as exporters means spreading the benefits of global trade, supporting more jobs and growth for companies large and small.”
The banks will be able to provide export-related finance, such as working capital loans, to SMEs with the guarantee of UKEF. In addition, UKEF will expand its offering by giving direct trade finance to export-supporting suppliers. The scheme will be delivered to banks through a digital platform.
Jeff Longhurst, head of commercial, UK Finance said: “The industry is committed to making it easier for UK exporters to access finance and UK Finance has worked closely with lenders and UKEF to make this process simpler.”