6th Meeting

June 16th 2011The New Wolsey Theatre, Ipswich

“Trade finance support for exporters” – Steve Roberts-Mee, ECGD

“Enterprise Finance Guarantee for SMEs” – Graham Coker, NatWest Bank

Agenda

16th June 2011

5pm – 5:25pm Networking

5:25 – 5:30pm Welcome by David Redhead, BSP International Foundations Ltd.

5:30 – 5:45pm “Trade finance support for exporters” Steve Roberts-Mee, ECGD.

5:45 – 6:00pm “Enterprise Finance Guarantee for Exporters” Graham Coker, NatWest

6:00 – 6:05pm Conclusion – David Redhead

6:05 – 7:00pm Buffet & Networking

FINANCING THE FUTURE

New government help for exporters

Steve Roberts-Mee, ECGD

ECGD – the UK export credit agency

We provide services such as:• insuring UK exporters against non-payment by

their overseas buyers • helping overseas buyers to purchase goods and/or

services from UK exporters by guaranteeing bank loans to finance those purchases

• insuring UK investors in overseas markets against political risks

More about ECGD

• Short term business privatised 1991• Since then, capital/semi-capital exports where the

private market could not provide support• Fewer mainly large exporters - lost contact with

SMEs • New products – need to get reacquainted

New products

• Extension of short-term credit insurance – available now

• Bond support scheme – available now • Export working capital scheme – available now • Foreign exchange credit support scheme – still

under development with banks

Short term credit insurance

• Extended from semi-capital and capital goods• Now includes finished manufactures and

intermediate goods • Not usually clothes or food• But can consider if exporter can’t get private

support• Contract value as low as £20,000

Short term credit insurance (cont.)

• Export from UK• Buyer must meet ECGD’s minimum risk standard• You will be charged premium

Bond support scheme

• Sharing risk with banks helps exporters to raise bonds from their banks in the first place

• Providing additional capacity to the banking market - bank can say yes more often

• Could help free up working capital - Advance Payment Guarantees

Export working capital scheme

• Helps exporters access working capital finance• Pre- and post-shipment• Specific export contracts• Expect banks will apply to high-growth SME

exporters• Helping with their cash flow – supporting exporters

to win or perform specific export contracts

Export Enterprise Finance Guarantee

• ECGD products - complementary to ExEFG scheme – for contract value above about £1million

• ExEFG - up to £1 million for SMEs’ short term working capital loans, letters of credit and contract bond needs

Foreign exchange credit support scheme• ECGD will share risk with banks on their credit

exposure arising from the foreign exchange hedging contracts provided to exporters

• Ancillary product - take out alongside another ECGD product

ECGD’s other products

• Buyer Credit• Supplier Credit Financing• Sovereign Star• Bond Insurance Policy• Letter of Credit Guarantee Scheme

New products - how to apply

• Export insurance policy - directly from ECGD or through your broker

• Other products - available from banks

Contact us

• Customer Helpline - 020 7512 7887• www.ecgd.gov.uk

• Give me your business cards!

•“EFG or Ex EFG that is the question”

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The schemes

EFG Export EFG

Aims Facilitate additional working capital to viable UK based SME where no or insufficient

security is available to obtain conventional facilities

Facilitate additional working capital for export purposes to viable UK based SME where no or

insufficient security is available to obtain conventional facilities

Availability Up to 31st March 2015 Initially 6 m’s from 28th April 2011

Facility size £1,000 - £1m £25,001 - £1m

Period 3m’s – 10 years 3m’s – 2 years

Guarantee 75% 60%

Premium 2% pa 3% pa

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What Export EFG Supports

Trade Loans

• Pre or post export

Bonds & Guarantees

• support to export contracts and reduce requirements for ‘cash cover’

Invoice Finance

• addresses the export exclusion in EFG and relates to new & additional facilities

A range of trade instruments

• where facilities or funding is linked to e.g. documentary letters of credit, bills of exchange

However…

• Overdrafts are excluded

•Gavin Brooks Business Development Director

NatWest