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General Export Facility – What you need to know

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For those still struggling with the complexities of Brexit, financial help is available through the General Export Facility (GEF) for exporters looking to expand their business.

The Government body is designed to help businesses export their goods and services overseas and complement the private sector by working with over 100 private credit insurers and lenders.

How can the scheme benefit businesses?

The GEF is run by the Government’s export credit agency, UK Export Finance (UKEF) and can guarantee cash facilities, such as trade loans, or contingent obligation facilities, such as bonding and letter of credit lines, with maximum repayment terms of up to five years.

How does the scheme work?

Launched in 2020, it provides a Government guarantee to lenders of up to 80 per cent of the credit risk on facilities, typically worth up to £25 million, without an export contract.

When the criteria for an application has been met, UKEF has delegated authority to participating banks to provide up to £5 million per UK exporter.

Once agreed, the guarantee will be automatically granted to the participating bank, minimising application response times.

Eligibility criteria

According to HMRC, the exporter must be able to declare that:

  • In any one of the last three financial years, at least 20 per cent of their annual turnover has been made up of UK export sales
  • Or, in each of the last three financial years, at least five per cent of their annual turnover has been made up of UK export sales

They must also be able to declare that they have premises and employees in the UK and that they pay UK or Isle of Man/Channel Islands National Insurance Contributions or Corporation Tax.

  • They must also declare that they manufacture goods and deliver services from the UK, which would qualify for a UK Chambers of Commerce Certificate of Origin.
  • They must show they do not solely engage in the supply of goods that have been manufactured outside of the UK or services from someone who ordinarily carries on business outside the UK.

Banks taking part include:

  • Barclays Bank plc
  • HSBC UK Bank Plc
  • Lloyds Banking Group/Bank of Scotland plc
  • Newable Business Loans Limited
  • The Royal Bank of Scotland plc
  • National Westminster Bank plc
  • Ulster Bank
  • Santander UK plc
  • Virgin Money.

Need help with matters relating to exports and Brexit? Contact us today.