Export Enterprise Finance Guarantee Scheme (EXEFG)
What is it?
ExEFG is a new Government Guarantee scheme, which supports export transactions that are not covered by the existing EFG scheme. It is aimed specifically at small and medium sized exporters who are viable and require an export finance facility, but have insufficient security available to secure the borrowing facility (under the Lender’s normal credit criteria).
This is a new variant of the Enterprise Finance Guarantee (EFG) scheme and will provide a government guarantee to lenders to facilitate the provision of short‐term export finance lines to exporting small and medium sized companies.
ExEFG provides a 60% government‐backed guarantee on any supported facility.
ExEFG covers traditional trade instruments and facilities such as:
- Lines of trade credit, including pre and post finance
- Bonds and guarantees
- Invoice financing
These are offered by the Department for Business to assist exporters obtain working capital finance, in order to win or perform specific export contracts.
What are the benefits?
- Eligibility will be very simple to establish (criteria being agreed currently)
- Provides an alternative source of funding for businesses without the necessary security for a commercial loan.
Where can I find out more?
Further details on the EFG scheme and the application progress can be found on the Department for Business’ website (http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee/efg-application-process) or by contacting your local corporate bank.
Download the factsheet in PDF format - here.