Government Partnership to Support UK Businesses

In Liz Truss’ first day in office, leading B2B trade finance fintech Trade Finance Global (TFG) has announced a new partnership with the UK Department for International Trade (DIT) and UK Export Finance (UKEF), the UK government’s export credit agency, to produce the UK Trade & Export Finance Guide.

Prime Minister Liz Truss, who was elected yesterday, previously served as Secretary of State for International Trade and President of the Board of Trade from 2019 to 2021. The new PM faces a number of challenges upon taking office, but boosting the UK economy through international trade is one of them. The UK Trade & Export Finance guide was created in partnership to empower SMEs with the confidence and knowledge to grow their business overseas.

The trade finance gap has reached $1.7 trillion and SMEs are disproportionately affected. With up to 90% of global trade requiring financing, the 60-page guide comes against a backdrop of complex geopolitical circumstances and an ever-changing financial landscape. Exploring issues, such as the COVID-19 pandemic, Brexit, and the current Russia-Ukraine conflict, the guide aims to paint a clearer picture of how to navigate the current economic status of the industry.

Mark Abrams, global head of trade and receivables finance at TFG, says: “During these uncertain times a guide such as this one can really help shed light on UK trade and export requirements.”

This guide hopes to combat these challenges by providing a definition of trade finance, covering key finance products, where to go to for support and outlining two UK case studies. It subsequently provides an insight into the trade cycle, along with the nuances of undertaking or expanding international trade ventures in the context of the financing gap.

The guide also provides UK exporters with detailed information regarding UKEF’s trade finance and insurance products for a more complete picture of the sector. It is a telling feature for SMEs looking to adapt to post-pandemic trade as Tim Reid, director of the business group at UK Export Finance, says: “Exports can help businesses increase profits and grow, especially when you are supplying to industries that are growing faster outside of the UK. That’s why we are pleased to be working with Trade Finance Global to help business leaders understand the benefits of trade and how the right finance can unlock new opportunities.”