UK
  • Singapore
  • Hong Kong
  1. Osome Blog UK
  2. A Guide to Financing for UK Businesses Importing and Exporting Globally

A Guide to Financing for UK Businesses Importing and Exporting Globally

A Guide to Financing for UK Businesses Importing and Exporting Globally

Times are tough for registered UK businesses that trade internationally, whether it’s contending with the new Brexit regulations or dealing with the knock-on effects of the COVID-19 pandemic. But don’t worry, there’s help out there—provided you know where to look.

Throughout this post, we’ll be exploring two fantastic government-backed sources of finance for UK businesses that trade internationally.

UK Export Finance (UKEF)

UKEF is the UK’s Export Credit Agency. The agency provides a wide range of services to ensure that no UK export business fails due to a lack of available finance.

Among other areas, the agency can help with:

How Can I Find Out More?

Fortunately, the UKEF has several expert Export Finance Managers dotted around the UK. If you want to speak to your local Export Finance Manager, simply head here.  

Export Working Capital Scheme

Many businesses’ cash flows have been significantly hampered as a result of the pandemic. Indeed, you might be struggling to raise enough capital to fulfil existing orders—a situation that no business wants to find itself in.

With the Export Working Capital Scheme, however, you can receive a partial guarantee of up to 80% from the government. That means that you can go to your bank and ask for a loan to cover the export, and the Export Working Capital Scheme will act as your guarantor.

Even better, there’s no minimum or maximum amount to qualify for the scheme.

Does My Business Qualify?

The qualification criteria are simple.

  1. You must be conducting business in the UK (including the Isle of Man or the Channel Islands).
  2. You must have either already entered into—or are about to enter into—a contract with a company that carries on business outside the UK.
  3. All transactions must be in line with the UK’s foreign content policy and the anti-bribery, corruption, environmental, social, and human rights due diligence process.

How Much Does the Scheme Cost?

Don’t worry, your business doesn’t have to pay any additional fees to take part. The guaranteed lender—that’s to say, your bank or other financial institution—offers the scheme something that’s known as a “guaranteed fee”.

Essentially, this means that the scheme receives a percentage of the interest that your company pays back to your loan provider.

Where Сan I Find Out More Information?

Simply check out GOV.UK’s dedicated page to find out all you need to know.

Buyer Finance

Last but not least, the UKEF also has something called the Direct Lending Facility. In short, it means that overseas companies looking to buy British goods can receive a loan from the UK government to help facilitate their purchase.

The maximum amount for any loan is £200 million, with the Direct Lending Facility operating under an overall limit of £8 billion.

Know the Options Available

It’s an especially scary time for business owners. Cash flows are drying up, there’s increased pressure on global trade logistics, and the economy is stuttering.

Tip

However, remember that there are financing options out there to help get you through this period. If you want more advice on how to seek finance for your business, speak to one of Osome’s accounting experts today.

Share this post:

Tips to run your business smarter.
Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

You might like it

Make, Manufacture, Wholesale or Dropship: 4 Business Models for E-commerce Businesses to Choose From
E-commerce

Make, Manufacture, Wholesale or Dropship: 4 Business Models for E-commerce Businesses to Choose From

As an online business owner, you will have to face many choices. Apart from the products you intend to sell, you will also have to make your biggest business decision when it comes to the ideal business model to pursue.

10 Tips To Prepare For Fundraising From a Venture Capitalist
Entrepreneur's Bootcamp

10 Tips To Prepare For Fundraising From a Venture Capitalist

The most difficult part of starting your own business can be raising capital. For practical tips, we asked Jason Edwards of VentureCap Insight. He’s seen many startups ask for money from his experience as a venture capitalist.

11 Reasons Why You Should Let Osome Take Over Your Accounting
Accounting

11 Reasons Why You Should Let Osome Take Over Your Accounting

To get the best chance at success, entrepreneurs have to make sure they have the right partners around them when starting their own business. Here’s why we are the right partner for your accounting tasks.

Best UK Business Bank Accounts for New E-commerce Sellers
Entrepreneur's Bootcamp

Best UK Business Bank Accounts for New E-commerce Sellers

E-commerce has advanced so rapidly that not all banks can keep pace. Choosing the right bank will help you succeed in your business and grow.

Seller Spotlight on Christos Fellas: How a Multi-Channel E-commerce Seller Gets More Done With Accounting Help
Entrepreneur's Bootcamp

Seller Spotlight on Christos Fellas: How a Multi-Channel E-commerce Seller Gets More Done With Accounting Help

The multi-hyphenate revealed to us how he started his YouTube channel two years ago with one sole purpose, to document his progress as an entrepreneur and investor in the world of business and to help as many people as he can by sharing his knowledge and learning along the way.

Creating an Invoice - A Guide
Accounting

Creating an Invoice - A Guide

An invoice contains all the necessary information you’ll need when you start doing accounting. Here's how to make an invoice.

A Basic Guide to Reading Balance Sheets
Accounting

A Basic Guide to Reading Balance Sheets

When it comes to managing your business, one of the most crucial financial statements is the balance sheet. We cannot emphasise how important it is to learn how to read a balance sheet to ensure your company's financial health.

10 E-commerce Tips From Industry Experts: Webinar by Osome, HelloTax, Incorporate Estonia and Huboo Technologies
E-commerce

10 E-commerce Tips From Industry Experts: Webinar by Osome, HelloTax, Incorporate Estonia and Huboo Technologies

Looking back at 2020, a group of industry practitioners discussed what e-commerce will look like in 2021 and what tips retailers could use to grow their businesses.

A Guide to Business Income Tax in the UK
Tax

A Guide to Business Income Tax in the UK

Being the boss of your own company means you get the flexibility to decide your own schedule, but when it comes to tax season, things might get a little confusing. No worries though, we're here to guide you through the process so you can stay compliant with the law.

5 Benefits of Using a Digital Business Account You Should Know About
Incorporation

5 Benefits of Using a Digital Business Account You Should Know About

A digital world is changing the way we bank. You might have heard about digital banks while thinking of setting up your business in the UK.

Avoiding the Bottleneck: How To Crack Down on Late Payments
Running My Business

Avoiding the Bottleneck: How To Crack Down on Late Payments

Considering the risks posed by late payments, it’s wise that all small businesses take steps to avoid the issue arising in the first place, and to address the impact if it does.

How SMEs Are Coping With The Economic Fallout Of COVID-19
Running My Business

How SMEs Are Coping With The Economic Fallout Of COVID-19

With the UK being one of the hardest-hit nations, British SMBs have felt the full brunt of this COVID-19-related economic fallout. Let’s explore how they’ve coped throughout this period.

Tips to run your business smarter. Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

We’re using cookies! What does it mean?