18

In 2019–20 UKEF directly supported 199 customers, falling short of its target to support 500.

Conclusion
In 2019–20 UKEF directly supported 199 customers, falling short of its target to support 500. A further 140 customers benefited as suppliers to UKEF-supported projects. UKEF attributes lower than expected growth in the number of customers it supports to a lack of awareness among small businesses of what UKEF offers; a lack of appetite from banks to support smaller exporters; declining demand from exporters; and issues with the application process for UKEF products.42 Pact has informed us that UKEF products and services are not used by the creative businesses it represents because they are not tailored to their needs.43
Government Response
Not Addressed
HM Government Not Addressed
5.5 The government agrees with this recommendation. Target implementation date: September 2021 5.6 UKEF launched the General Export Facility (GEF) in December 2020 following conclusion of negotiations with the five banks currently operating the delegated schemes. By providing a product that better fits with how banks lend to SMEs, the GEF may lead to a step change in the number of SMEs who receive UKEF support. 5.7 UKEF has refreshed its “Exporters Edge” marketing campaign, which raises awareness of UKEF among exporting SMEs. Promoting the uptake of GEF and other SME-focused products will be a central part of the campaign, working with UK banks and other industry partners. 5.8 At the beginning of 2020, UKEF adjusted the terms of its agreement with the banks to provide delegated authority for its trade finance products, streamlining delivery and making it easier for the banks to lend. 5.9 On the buyer finance side, UKEF has set up a new team to look at smaller transactions. This team is focused on improving these products to make the terms more straightforward, in turn opening up funding from new lenders that are better placed to operate in the SME space.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.6 yrs
Report published 28 Oct 2020