Have A Loan Which Is Guaranteed By The Government

Because the government is concerned to promote exporting

of British goods to overseas markets there is a great deal of

government sponsored finance available to the firm or

individual who wishes to sell British goods to overseas

customers.

The government runs an export credit programme which

provides insurance against political and commercial risks

involved when selling to foreign buyers and to maximise the

attractiveness of terms offered to overseas customers.

Banks are part of the infrastructure which provides finance

and expert advise for export agencies. The government

Export Credits Guarantee Department (ECGD) provides

insurance guarantees and a level of subsidy to assist in

maximising the level of goods exported from the U.K. It is in

the interest of the government, and likewise in the overall

interests of the British people, to ensure that the highest

possible amount of British goods are sold abroad to attract

wealth to our country.

With the backing of the ECGD, finance can be obtained in

many and various ways. A supplier can insure up to 95% of

his receivables with ECGD and assign the proceeds of this

insurance policy to a bank. This will enable him to obtain

finance from the bank on terms much more attractive than

would otherwise be available.

The ECGD will provide an unconditional guarantee for 100% of

the principal and interest of any loan acquired for the specific

purpose of financing an export deal. If for any reason the

exporter is not paid by the buyer, he has recourse through

his ECGD insurance policy, to receive payment, providing he

has not breached the terms of his contract.

Full details of this loan guarantee and insurance system are

available from the overseas trade departments of any major

clearing bank.

Further government guarantees on loans for business

enterprise, and even outright grants, are available in certain

areas of the country. If you wish to start up a business, which

will create jobs in an area of high unemployment there are

very attractive financial packages available.

Your local council and government economic development

bodies will let you know what is available, for what purposes,

and in which areas. Local area economic and business

development projects can be contacted through addresses in

the telephone directory or by getting in touch with your local

Chamber of Commerce.