In April, the Office for National Statistics published data showing that since 2020, there has been 63 percent growth in real terms in the export of services and 7 percent growth for goods. International trade is one of the drivers of growth in modern Britain, as it has been for decades - if not centuries.

The UK is home to a vast amount of trading expertise, with recent reports suggesting that our country is now the world's fourth-largest exporter. However, that does not mean that exporting is a breeze. A huge amount of work goes into keeping us at the front of the pack.

Recent years have brought big changes to the trading landscape. The COVID pandemic, new geopolitical tensions, inflation and the effects of climate change have all had a significant impact on the world economy. There have been supply-side shocks, disruptions to traditional trade routes, and seismic changes in consumer behaviour too - with smaller businesses feeling the effects acutely.

But behind these challenges are exciting opportunities for SMEs keen to grow in overseas markets. Developing markets hold particular promise for enterprising businesses, and the demand for innovative products is riding high. SMEs have the agility and adaptability to navigate these conditions. They can find great opportunities to grow through exporting.

This is where UK Export Finance (UKEF), the UK's export finance agency, can step in to give businesses the tools they need to overcome challenge and seize opportunity. Get your financing right, and you have overcome one of the biggest hurdles out there.

Getting the finances right

UKEF exists to help exporters win contracts, fulfil orders and get paid. We work alongside private financial institutions to support businesses, either with our loans, guarantees and insurance, or by signposting them towards suitable private financing.

We are aiming to support SMEs more than ever before over the next five years. We've recently set ourselves the aim of supporting at least 1,000 SMEs per year by 2029, as well as a target to help UK businesses in general win £12.5 billion in new export contracts in the same period.

To give one example: exporters may be concerned about the risk of non-payment from overseas buyers. UKEF's export insurance policies protect businesses from this risk, providing financial security in the event that a buyer fails to meet their payment obligations. UKEF is able to insure up to 95% of potential losses under an export contract. Providing businesses with this cover helps them to invest in exporting with confidence.

UKEF credit guarantees on the other hand help businesses secure loans and financing to bridge the gap between securing an export order and fulfilling it. This gives our clients the ability to manage cash flows more effectively, especially during periods of increased production or when dealing with longer payment terms. UKEF is providing the resources SMEs need to meet production deadlines and deliver on their exporting commitments.

Finding help

What UKEF offers is a suite of financial products and services designed to support SMEs throughout their exporting journey. So, whether you're a seasoned exporter looking to expand into new markets or a first-time exporter taking your initial steps on the global stage, export finance can help at any point of your journey.

Typically, UKEF helps businesses when the private sector finance and insurance market is unable to. Speaking to UKEF's Export Finance Managers will help SMEs with appropriate solutions for export journey. These representatives - based around the UK - can help you understand your financing needs at no cost.

Supporting inclusive trade

To help us do even more, we are developing our products and customer engagement, expanding our collaboration with the Department for Business and Trade, the British Business Bank and local Chambers of Commerce to reach even more businesses - and these are all potential sources of support to help SME exporters, whether they are trying to understand the nuances of a particular market or wanting advice on the latest trading regulation. Getting your financing right is just one part of the challenge.

Exports are not just good news for the UK; they also represent an opportunity for developing economies around the world, which benefit from improved infrastructure, consumer goods and much more. UKEF is aiming to underwrite £10 billion of financing to support UK exports to low-income and middle-income countries by the end of the decade. SME exporters can play an important part in delivering against these objectives.

Every exporting success paves the road towards greater prosperity, in the UK and around the world.

Find out more about UKEF at https://www.ukexportfinance.gov.uk/.