UK Export Finance (UKEF), the UK’s export credit agency, has introduced a new guarantee product to help British firms secure international contracts to provide engineering, design and technical services.
The Early Project Services Guarantee (EPSG) is now available to overseas buyers who choose to use British services firms to scope and design their projects in the planning phase. The guarantee helps overseas buyers of UK services to gain access to private finance by assuring lenders that they will receive payment, making the UK offer more attractive.
Once the project-services contract is complete, there’s potential for the guaranteed loan to be refinanced alongside financing the wider construction project. The prospect of subsequent finance throughout the life-cycle of projects provides an incentive for overseas buyers to select UK services firms for the early-stage work.
‘This new export finance support will give international buyers even more incentive to tap into UK design and engineering expertise. Year-on-year growth in service exports shows that the demand is there for this country’s professional and technical services,’ said Carl Williamson, director of SME and trade finance at UKEF. ‘The development of our Early Project Services Guarantee is a clear signal of UKEF’s commitment to helping the services sector to maintain its competitive edge and international renown.’
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According to UKEF, the EPSG addresses gaps in market provision for financing the preparatory stages of major projects, while also contributing towards UKEF’s objective of helping a broad range of businesses to export.
More detail on the Early Project Services Guarantee can be found here.