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UK Export Finance has secured an £11bn lending commitment from five major UK banks.
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The scheme enhances access to working capital for SMEs, including automatic guarantees for loans up to £10m, alongside hands-on advisory support from banks and UKEF specialists.
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The partnership enhances exporters’ ability to enter new markets and capitalise on recent and emerging trade agreements.
UK Export Finance, the UK’s export credit agency (ECA), has pledged a lending commitment from the UK’s five leading banks of £11 billion to support domestic businesses.
Yesterday, 27 January, senior executives from NatWest, HSBC UK, Barclays, Lloyds Banking Group, and Santander finalised the agreement at a Westminster roundtable convened by Business Secretary Peter Kyle and UKEF Chief Executive Tim Reid.
“This partnership puts real firepower behind the UK’s growth mission,” Reid told Trade Finance Global (TFG). “It’s a historic show of confidence from five of Britain’s leading banks in the ambition of our exporters.”
Trade finance packages will be funded from banks’ balance sheets, with UKEF guaranteeing up to 80% of the eligible loans issued by each bank. UKEF’s guarantee can be applied automatically to working capital loans up to £10 million.
“For small and mid-sized firms across the country, this opens doors to new markets, new contracts, and new opportunities to scale,” said Reid. The partnership is set to improve the working capital facilities for small and medium-sized enterprises (SMEs) across the country.
Beyond capital provision, the banks are offering relationship manager support alongside UKEF’s regional export finance managers – a recognition that SMEs often need as much guidance as they do funding when entering new markets.
This advisory component addresses documentation requirements, currency risk, payment terms, and market-specific trade practices.
The agreement positions SMEs and British exporters to capitalise on recent trade agreements. In the past year, a monumental free trade agreement has been signed with India, with negotiations at various stages with South Korea, Switzerland, and Türkiye. Agreements on certain sectors have also been reached with the European Union (EU).
