The UK Export Finance (UKEF) has introduced the Early Project Services Guarantee (EPSG) to support British companies in securing global contracts.
- The EPSG aims to assist international buyers who select UK service firms for early project stages by providing financial guarantees.
- This initiative helps in obtaining loans for early-phase services like feasibility studies and design, with repayment terms up to two years.
- Successful progression of projects allows for continued financing through UKEF’s Buyer Credit Facility, upon meeting specific criteria.
- The EPSG fills a market gap and aligns with UKEF’s goals to boost UK exports and support diverse businesses.
The UK Export Finance (UKEF), a prominent export credit agency, has unveiled the Early Project Services Guarantee (EPSG) to empower British firms in acquiring international contracts. This initiative is designed to facilitate global buyers who choose UK companies for essential early project tasks, including feasibility studies and conceptual design. By proffering guarantees, EPSG aids these buyers in securing private finance, making UK services more alluring.
The mechanics of the EPSG are straightforward yet effective. International buyers initiating substantial projects often require early services. They can engage a UK firm for such tasks and subsequently seek a bank loan backed by the EPSG. This ensures that the UK company receives timely payment, typically upon completion of the agreed services, with a loan reimbursement period extending up to two years.
For projects that advance beyond the initial stages, buyers may apply for a Buyer Credit Facility. This allows the continuation of the project financing, contingent upon adherence to UKEF’s diligence standards and eligibility prerequisites. Such a provision not only ensures project continuity but also secures financial stability for early stage payments.
Eligibility for the EPSG mandates that the UK supplier must be active and the financing must be specific to project-related services, excluding physical construction works. Additionally, the loan term must not surpass two years. UKEF’s introduction of EPSG aims to address a financing void prevalent in preliminary project stages, ultimately encouraging export growth across UK regions.
Carl Williamson, UKEF director of SME and trade finance, commented: “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.” His statement highlights the strategic aim to bolster the UK’s competitive edge globally.
The EPSG by UKEF is a strategic move to enhance the global competitiveness of UK services by supporting international contract acquisition and export growth.
