The UK is launching a new financing initiative designed to help British companies expand into rapidly growing overseas markets by making it easier for foreign buyers to purchase UK
goods and services.
Under a new pilot scheme from UK Export Finance (UKEF), selected companies and organisations in markets including Brazil, Morocco and Mexico will be able to access commercial loans backed by the British government. The initiative is intended to encourage these borrowers to increase their use of British suppliers while creating new export opportunities for UK businesses.
The programme, known as Flexible Finance, represents a change in the way UKEF uses its financial guarantees. Unlike some of the agency's existing products, the new facility will give overseas borrowers greater freedom over how they use the financing, while linking access to UKEF-backed funding with opportunities to source products and services from British companies.
UKEF plans to provide guarantees worth up to £5 billion during the pilot phase. The government-backed guarantees can cover as much as 80% of an eligible commercial loan, helping overseas borrowers secure financing while establishing longer-term relationships with British exporters.
The agency will also work directly with participating borrowers to identify potential UK suppliers. This will include matchmaking, procurement assistance and other support designed to connect foreign demand with British businesses capable of meeting it.
The government sees the initiative as part of a broader effort to strengthen Britain's export performance and support economic activity across the country. The scheme is particularly focused on economies where demand is expanding rapidly but where UK companies currently have a relatively limited commercial presence.
Chancellor of the Exchequer John Healey said the initiative was intended to help British businesses secure more international contracts, particularly in markets where there is significant potential for expansion.
The government also highlighted the potential domestic impact of stronger export activity, arguing that successful overseas sales can support investment, employment and economic growth in communities across the UK.
Business, Innovation, Science and Trade Secretary Jonathan Reynolds said the programme would help British companies take advantage of opportunities in new international markets and strengthen the country's position as a global supplier of goods and services.
Flexible Finance is the latest expansion of UKEF's support for British industry. The government has been developing new export-financing tools as part of its wider Industrial Strategy, with the agency also announcing a new defence export facility in June that increased its capacity to support defence exports by £50 billion.
The new pilot therefore combines government-backed finance with a more targeted approach to opening overseas markets for British companies, with the government hoping that greater access to capital for foreign buyers will translate into additional orders for UK exporters.
