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UKEF said that its biggest problem is raising awareness with businesses and among the relationship...

Conclusion
UKEF said that its biggest problem is raising awareness with businesses and among the relationship managers of the banks it works with to provide export finance. UKEF encourages banks to lend by offering to guarantee up to 80% of their risk exposure, so if a bank is prepared to lend £100,000 to a company, then with the UKEF guarantee it could lend up to £500,000 to the company.44 UKEF has a marketing budget and has developed an awareness-raising campaign called Exporters’ Edge. UKEF informed us that, since the start of the campaign, awareness among small and medium-size enterprises (SMEs) has risen from 20% to 31%.45 We asked whether UKEF undertakes a customer survey. UKEF informed us that, because it has so few customers, it does not survey them directly and instead it regularly talks to trade associations.46
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