Red Pepper Uganda

UK Supports businesses including SMEs start to export

UK Supports businesses including SMEs start to export

The UK offers various support to businesses in the UK willing to export to Uganda.

Most companies need to be eligible to quality for support.

Some of the schemes include:

Export Working Capital Scheme: Support in form of a guarantee provided to a bank, so that UK exporting companies can access the extra working capital they might need to deliver a sizeable export contract.

The maximum value of the finance must be no more than 75% of the export contract’s value, and advances must be used only for the purpose of paying or reimbursing the exporter for expenses incurred performing that contract.

Banks pay a guarantee fee to UKEF which is a proportion of the interest margin received from the UK exporter.

Application is done through participating banks that can be found on the UKEF website (https://www.gov.uk/government/organisations/uk-export-finance).

Bond Insurance Policy is provided direct to an exporter to protect against a demand for payment under a bond which is unfair or caused by political events.

This does not cover tender or bid bonds for contracts which the UK Government is financing through its aid programme.

This is eligible for UK-based exporter with at least 20% of contract value being UK content.

Export Insurance Policy (EXIP). This is an insurance policy extended direct to UK exporters to protect them against non-payments.

The eligibility is for UK-based exporter with at least 20% of contract value being UK content.

And with customer based overseas and the exporter must have been refused cover for the contract by a private insurer.

If the length of contract is less than 2 years your overseas customer must be based outside the EU and other specified high-income countries. Applications are free, premiums priced individually starting at £250

Bond Support Scheme: This is a guarantee provided to a bank, so that the bank can issue a bond which needs to be provided by an exporter as part of a UK export contract.

Banks pay a guarantee fee to UKEF which is a proportion of the interest margin received from the UK exporter.

Application is done through participating banks that can be found on the UKEF website (https://www.gov.uk/government/organisations/uk-export-finance).

Letter of Credit Guarantee Scheme: This is a guarantee to a bank to enable UK exporters to get their letters of credit confirmed by the bank. UK-based exporter.

Goods must be exported from the UK or must be imported into the UK before being re-exported.

And issuing bank must be based outside the EU and other specified high-income countries.

There is no minimum or maximum contract value. Documentation demanded by the letter of credit must be presented within a year; the deferred payment period of the letter of credit must also be less than a year.

Application is done through participating banks that can be found on the UKEF website (https://www.gov.uk/government/organisations/uk-export-finance).

Direct Lending Facility; The provision of loans from UKEF directly to overseas customers to enable them to purchase UK exports.

This is for all UK-based exporting companies, including SMEs. There are no min or max loan values.

However, for loans below £5m, UKEF may offer alternative export finance options.

The maximum that can be made available under the loan is 85% of the contract value.

A minimum of 15% of the contract value must be paid directly to the exporter by the customer before the loan starts to be repaid.

Of the 15%, normally a down payment of 5% should be received upon contract signature.

Foreign borrowers pay a premium based on a % of the value of the loan. The rate of this premium is governed by OECD agreements.

The borrower also pays interest on the loan at the lowest fixed rate permitted by the OECD. The panel members

Buyer & Supplier Credit Financing Facility:  A guarantee to a bank which enables it to make a loan to an overseas buyer to pay for a UK export of capital goods and services.

The loan is typically repaid over a period of 5 years or longer. The UK exporter will receive payment via the credit facility as amounts fall due under the export contract.

The maximum amount that can be made available under the loan is 85% of the contract value.

A minimum of 15% of the contract value must be paid directly to the exporter by the customer before the loan starts to be repaid.

Of the 15%, normally a down payment of at least 5% should be received upon contract signature.

We advise all those that are willing to export to uganda to visit https://www.gov.uk/government/organisations/uk-export-finance for more information and support.

A member of the UK Export Finance will be a t the 6th Uganda UK Convention in London 10th Sept 2016 at Troxy to advise business people on support and finance from the UK government. register at

Register: https://6thugandaconventionuk.eventbrite.co.uk/

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