By Daniel Hunter
The Direct Lending Scheme has been developed by UK Export Finance, the government’s export credit agency. It will support exports where buyers need loans of up to £50 million to finance the purchase of capital and semi-capital goods and services from UK exporters, but have been unsuccessful in obtaining an export credit loan from the banks.
The new demand led lending scheme will mean more foreign buyers can access support to buy products from UK exporters.
The Chancellor announced the £1.5 billion Direct Lending Scheme in the Autumn Statement last year. This is the first time in UKEF’s history it will be able to offer this type of support.
Lord Green, Minister for Trade and Investment said:
"Exports play a vital role in rebalancing our economy, and where the customers of British exporters are having difficulties securing export finance from other sources, UK Export Finance can now assist by providing loans through the Direct Lending Scheme."
Under the Scheme, UK Export Finance will provide an export credit loan directly to an overseas buyer or borrower. It will directly negotiate the terms and conditions of the loan, disburse funds against the manufacture and supply of the goods and services under the respective export contract and manage the repayment of the loan.
The Direct Lending Scheme is now open to applications.