UK Export Finance (UKEF) has launched a new pilot product called Flexible Finance, offering up to £5 billion in loan guarantees to overseas buyers. The initiative aims to incentivise the purchase of goods and services from British companies, particularly in fast-growing economies like Brazil, Morocco, and Mexico.
Under the pilot, UKEF will cover up to 80% of a commercial loan for select foreign borrowers, providing greater flexibility in how the funding is used compared to existing guarantees. This approach is intended to widen access to finance for international buyers and establish relationships with UKEF, encouraging them to choose British suppliers.
Chancellor of the Exchequer, John Healey MP, stated that this new approach is part of 'Backing Britain' through procurement and jobs, aiming to drive growth and create employment across the UK. Secretary of State for Business, Innovation, Science and Trade, Jonathan Reynolds, added that Flexible Finance is designed to lay the foundation for growth and jobs as British companies benefit from a thriving export market.