PEACE OF MIND FOR UK EXPORTERS
A major concern of any exporter or investor is getting paid. The Export Credits Guarantee Department (ECGD) has been helping UK-based exporters and
investors for over 80 years by securing their bottom line.
Back in 1990, ECGD was part privatised, leaving the private sector to provide insurance to exporters of consumer goods and raw materials sold on credit terms of 6 months or
less. Since then, it has continued to provide support for large,
medium and small exporters of capital goods and services and those investing overseas, where private sector support is unavailable. ECGD can cover exports and investments from around £20,000 to multi-million-pound deals.
Assistance from ECGD usually takes one of two forms:
- On-demand repayment guarantees to banks which make finance available to overseas buyers of capital goods and any related services or stand-alone service contracts.
- Insurance for UK exporters/investors against non-payment in respect of capital goods and/or services delivered, or investment earnings.
A common mistaken perception of ECGD is that it only helps big companies
involved in major projects worth hundreds of millions of pounds. It is true that ECGD's sophisticated range of support facilities enables UK contractors to win business on many large projects; in fact, a recent review showed that up to 500 UK companies receive business from such a project via subcontracts. However, ECGD also supports small and medium-sized enterprises (SMEs) exporting and investing in a variety of markets and would like to help more who are trying to expand into emerging markets.
As with most services, it pays to examine all options. Private insurance
companies can offer credit insurance products for the majority of export contracts. ECGD may be able to provide support where the general insurance market is unable or unwilling to. ECGD is not designed to compete with the private sector but to complement it.
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For more information, contact: ECGD's Customer Helpline, Tel: 020 7512 7887, E-mail: help@egcd.gov.uk, Web: www.ecgd.gov.uk For information on private sector credit insurance, contact: the British Insurance & Investment Brokers' Association, Tel: 020 7623 9043, E-mail: enquiries@biba.org.uk
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