HM Treasury said on 28 September 2026 that UK Export Finance, the UK's export credit agency, will run a new pilot called Flexible Finance to encourage more overseas purchasing of British goods and services. The department presented the measure as part of a growth agenda built around exports, jobs and procurement. (gov.uk) The launch notice identifies Brazil, Morocco and Mexico as examples of faster-growing economies where, in HM Treasury's wording, British exports could be greater. That geographic focus matters: the pilot is not framed as a universal expansion of export support, but as targeted intervention in markets where ministers see room to grow UK sales. (gov.uk)
Flexible Finance is structured as a government guarantee behind commercial lending. HM Treasury said UKEF will guarantee up to 80 per cent of a loan to a qualifying overseas buyer, with the pilot carrying up to £5 billion of guarantees in total. (gov.uk) The policy distinction is that the borrowing terms are intended to be more flexible than under UKEF's existing guarantees. According to the Treasury, that gives the overseas borrower wider discretion over how finance is used while still tying the relationship back to future purchasing from UK suppliers. (gov.uk)
The announcement keeps eligibility deliberately narrow. Rather than opening a broad application route, HM Treasury refers to select buyers in named growth markets, which indicates a curated pilot rather than a mass-market product. (gov.uk) For those buyers, the commercial attraction is easier access to bank finance. For government, the intended public return is a longer-term trading relationship: the Treasury said UKEF will work with the borrower to increase imports of goods and services from British companies over time. (gov.uk)
The supplier-side element is a notable feature. HM Treasury said UKEF will not only back the loan but also provide matchmaking and procurement support for UK firms, moving the policy beyond pure finance and into market access and contract formation. (gov.uk) In practical terms, that means the pilot is designed to influence buying decisions before orders are finalised. UK exporters hoping to benefit will need clear visibility with UKEF, credible delivery plans and the capacity to compete in procurement exercises once overseas buyers start sourcing. (gov.uk)
For businesses in the UK, the scheme does not amount to a direct grant or a general loan window. The immediate benefit sits with the overseas buyer, but the commercial aim is to make British bids more attractive where financing terms can decide how a contract is awarded. (gov.uk) That gives the pilot a different policy function from standard export promotion. Instead of supporting only an identified shipment or contract, the government is using a financing relationship to build repeat demand and widen the pool of foreign purchasers that look to the UK first. (gov.uk)
Ministers are presenting the measure in explicitly industrial terms. HM Treasury linked Flexible Finance to the Chancellor's ‘Backing Britain’ priority on procurement and jobs, while Business Secretary Jonathan Reynolds framed the scheme as a means of helping British firms enter newer markets and bring the benefit of export growth back to the UK. (gov.uk) That framing places the pilot within a wider shift in which export credit is being used not just as trade support, but as a delivery tool for industrial strategy. The emphasis is on directing finance towards sectors and markets where ministers expect a clearer domestic economic return. (gov.uk)
The announcement also sits alongside a broader expansion of UKEF's remit. On 30 June 2026, UKEF launched a £50 billion Defence Export Fund, raising its total capacity to £130 billion and signalling a larger role for state-backed finance in strategically important sectors. (gov.uk) Taken together, the June defence package and the new Flexible Finance pilot point to broader use of UKEF across trade, procurement and industrial policy. The immediate question for suppliers is less whether support exists and more whether they are positioned to convert UKEF-backed buyer relationships into actual export contracts. (gov.uk)