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E-invoicing, SCF & E-procurement

UK Export Finance announces new SCF scheme

Thursday 7 December 2017 | 02:39 PM CET

UK Export Finance (UKEF) has announced plans for a new invoice financing scheme for exporters in a bid to boost exports through supply chain efficiency.

The new scheme will allow an exporter to set up a supply chain discounting facility with its bank, through which suppliers can receive up to 95% of their payment on invoice submission. The facility will be based on an export contract and support will be based on the buyer’s creditworthiness.

UKEF will provide the bank with a guarantee for up to 80% of the amount of credit provided through the facility. The finer details of the scheme, which is due to be launched next year, are still being ironed out.

The new product is designed to encourage banks to participate in invoice financing schemes for exporters by allowing them access to financing to pay their suppliers early. This will ensure exporters have more time to pay for supplies of goods and raw materials, while helping smaller companies in export supply chains secure prompt payment to support their cash flows.

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