British government agency UK Export Finance (UKEF) will provide guarantees on invoice factoring facilities to firms in the export supply chain.
Leasing Life understands that the agency’s scheme, due to launch next year, will allow firms that supply exporters with materials to secure invoice factoring on up to 95% the value of receivables.
The factoring will be provided by the supplier’s bank, and UKEF will provide a credit guarantee for 80% of the facility’s value. Exporters will repay the invoice amount to the bank at the end of a set period.
UKEF’s parent institution, the Department of International Trade, has also launched an export strategy review, which will consult with businesses to identify obstacles to trades and how to remove them.
Minister of State for Trade and Exports, Rona Fairhead, said: “UK exports are going from strength to strength, but the potential for further growth is huge, particularly as only 9% of UK businesses currently export.
“The Export Strategy review will draw on expertise from across government and the private sector, helping us to understand how best to support British companies to take advantage of opportunities in overseas markets. Throughout the process, we will look for significant input from UK businesses, both large and small, to ensure we develop a strategy that meets their needs.”