UK Export Finance (UKEF) has launched an online portal for credit insurance applications, as part of plans to support more SMEs’ exporting ambitions.
Using the new system, companies can apply directly without having to complete and return forms, significantly reducing the time needed to access the help they need to take advantage of international trading opportunities.
“Exporting can help businesses to grow more quickly and is a driver of UK economic growth. This is why the new government is asking UKEF to take action to make exporting easier and more accessible,” says Gareth Thomas, UK minister for exports. “This new online service makes it easier than ever before for SMEs to apply for export insurance, giving them the confidence to take on new contracts around the world.”
Export credit insurance protects exporters against the risk of non-payment by a foreign buyer. Around 75% of UKEF’s insurance policies last year were arranged for SMEs, mostly in manufacturing, construction and retail sectors.
UKEF export insurance can cover up to 95% of potential losses under an export contract. To be eligible for UKEF support, businesses must be unable to obtain credit insurance from the private sector, which is often the case for SMEs exporting small values of goods or selling to a single buyer.
Businesses must also be carrying out their export activity from an established base in the UK, with at least 20% of the value of their export coming from UK goods or services.
According to UKEF, its export insurance product has already protected hundreds of exporters from non-payment risk, giving them the confidence to deliver high-value export contracts. The credit insurer says it is aiming to support over 1,000 SMEs a year by 2029.