Via its Export Credits Guarantee Department (ECGD) the UK government has launched a new scheme for encouraging small and medium-sized companies to develop a presence in the international market place.
The ECGD, which underwrites bank loans made by British companies to overseas buyers of their capital goods and project services, will offer a package including: increased margins for banks financing small scale sales contracts; a speeded up procedure for companies selling to buyers with a good financial record; and, on contracts valued at up to Ј10m, an increased foreign content allowance of up to 40%.
The scheme is intended to improve the competitiveness of smaller companies operating in the export market by providing them with financial guarantees from the ECGD. The ECGD believes that up to 20,000 small companies now sell to foreign buyers without the support of credit insurers and it is keen to make such companies aware of its own services.
