How export finance is taking businesses from local to global

• UK Export Finance’s support helps UK businesses tap into global market opportunities.
• UKEF is dedicated to helping ethnic minority-led businesses unlock their export potential and accelerate international sales.
• Small businesses like Premier Ship Models can get guarantees to help them access working capital and free guidance on the export finance options available.

UK Export Finance (UKEF), the UK government’s export credit agency, supports UK businesses to win contracts to export abroad by providing attractive financing terms for buyers, and fulfill those contracts with the help of working capital and trade finance. UKEF also helps businesses to get paid by providing them with insurance against buyer default.

This support makes a crucial difference, allowing UK firms — large and small — to grow by tapping into the enormous opportunities that global markets provide.

“We want to support more UK firms to win export contracts and invest in their export capability, increase the number of small businesses that UKEF supports, and unlock the potential of traditionally underrepresented businesses,” said Tim Reid, UKEF’s CEO.

Supporting ethnic minority-led businesses to deliver on their export ambitions 

Premier Ship Models was founded in the early 2000s by Rashid Lalloo, who had spotted a gap in the market for detailed model ships to be sold via make-at-home kits or constructed by hand for clients. When it came to his first international export, the client asked Lalloo to deliver it in person to New York from the UK, so he took a plane, a train, and finally a taxi to ensure the safe arrival of the model ship. UKEF has worked with Premier Ship Models since 2017, providing invaluable help.

“Some of the contracts [to export] are literally hundreds of pages long,” Lalloo said, “which as you can imagine as a small business owner is quite challenging. That’s where we have that conversation with UK Export Finance.” Craig Green, the export finance manager from UKEF who has worked with Premier Ship Models, has helped the business manage contracts and work with suppliers in countries as far-flung as Mauritius, Oman, and Hong Kong.

Reid said: “Small businesses are the beating heart of the UK economy. Smaller businesses cannot always meet requirements that commercial lenders set for turnover and exporting history. Support from UKEF can help them to overcome these barriers to trade finance.”

Since 2020, UKEF has steadily increased its support for small businesses, with more than half of the businesses it assists being small businesses. A major challenge for small businesses is accessing traditional trade finance, but UKEF has taken steps to address this. The General Export Facility (GEF) product, one of UKEF’s key initiatives, helped businesses to access around £576 million in working capital between 2023 to 2024.

The GEF offers businesses the flexibility to access finance without requiring a specific export contract, making it easier for them to grow and expand internationally.

Focusing on underrepresented communities and regional growth

UKEF is taking concrete steps to ensure that ethnic minority-led businesses receive the support they need. These steps include increased visibility at events within networks and support groups for women and underrepresented communities, and developing targeted marketing campaigns to increase awareness of UKEF support.

“Nobody with a viable export should be missing out on export opportunities for want of the right financing,” Reid said. “This is why it’s crucial for us to support those who may experience higher barriers to accessing finance, including ethnic minority-led businesses.”

UKEF has also expanded its network of private sector partners, working with both banks and non-bank lenders to reach more small businesses. UKEF can support small businesses through its network of regional Export Finance Managers based around the UK who can provide free and impartial consultations to businesses on their export finance needs. They help companies check that they are getting the appropriate export finance support and, if not, guide them on how to bridge any gaps.

UKEF has also made a concerted effort to ensure regional diversity in its support. In 2023, 80% of the small businesses that UKEF backed were based outside London. The real-world impact of UKEF’s work can be seen in job creation in communities around the UK, support for the global transition to net zero through renewables projects, and support for development goals through infrastructure projects.

Looking ahead

As UKEF looks to the future, its focus remains on driving inclusive growth and supporting businesses of all sizes to navigate the challenges and opportunities of international trade. “In 2023 to 2024, we supported hundreds of small businesses — our highest level ever, in fact — and we know that we can and should go further,” Reid said. UKEF has outlined ambitious plans to increase its support; its priorities include assisting 1,000 small businesses annually by 2029, and ambitious goals such as supporting £10 billion in new clean growth initiatives and scaling up work in developing markets.

As the global economic landscape continues to evolve, UKEF stands ready to adapt and innovate, ensuring that UK businesses, particularly small businesses and those from underrepresented communities, have the support they need to thrive in international markets. Reid said: “We look at the impact and the way in which we really make a difference for communities in the UK and overseas — ultimately, we exist to support our customers and to drive prosperity across all regions of the UK.”

Unlock your business’s export potential with UKEF

This article was created by Insider Studios with UKEF.