Podcast | UK defence finance boosts support for British exporters, says UKEF Director Carl Williamson - Trade Treasury Payments

Today, the global economy is surrounded by geopolitical uncertainty and shifting trade patterns. In this, UK Export Finance (UKEF) stands as a critical pillar supporting British exporters as they venture into global markets. UKEF primarily provides guarantees to financial institutions, enabling them to lend to businesses involved in international trade and export. In March 2025, the UK government announced a decision to increase UKEF’s capacity by a third to £80 billion, signalling its commitment to positioning British businesses as formidable players on the international stage.

To learn more about Britain’s export strategy, Deepesh Patel, the editor of Trade Treasury Payment (TTP), spoke with Carl Williamson, the Director for Small and Medium-sized Enterprises (SME) and Trade Finance at UKEF. Williamson has an extensive background of over 30 years in banking before joining UKEF six years ago, and he now oversees the UK’s export credit agency’s financial support mechanisms. 

Record-breaking growth in export support

The March funding increase marks “a record year” for UKEF, which supported £14.5 billion of exports while helping over 650 customers, most of them SMEs. The impact extends beyond financial figures, resulting in approximately 70,000 jobs being maintained across the country.

UKEF’s commitment to regional development is noteworthy throughout the United Kingdom. “Just over 83% of what we do is outside of London,” Williamson emphasised. 

The expanded capacity aligns with the government’s industrial strategy, targeting sectors with significant growth potential, including clean growth, life sciences, advanced manufacturing, and the automotive sector. While UKEF describes itself as “sector agnostic,” these focus areas represent traditional British strengths with substantial export growth potential.

The defence export increase also helps balance strategic priorities

The government’s March 2025 announcement of a £2 billion increase specifically for defence exports raised questions about UKEF’s ability to maintain balanced support across sectors. This defence focus reflects geopolitical realities, with increased demand from Eastern Europe driving opportunities for British defence companies.

Williamson insists the expanded overall capacity allows UKEF to support multiple strategic priorities simultaneously. “The additional capacity means we can look across all areas. We can do clean growth, big defence deals, and support SMEs.”

While concentration risk exists, UKEF maintains that defence is a strategic sector with outsized economic importance. “Some defence companies are the biggest and most valuable exporters we have in the UK. The supply chain supports hundreds of thousands of jobs,” Williamson noted.

Additionally, while defence has received more vocal policy support, UKEF has also supported many deals in automotive, including a £1 billion loan guarantee for Ford UK and renewable energy projects.

Risk management in volatile markets

The increase in UKEF’s capital spending and risk exposure reflects its expanded activities, but Williamson stressed that risk management remains crucial. “Managing and mitigating risk has always been a core function of what we do,” he emphasised. Operating as a government department handling public funds, UKEF maintains rigorous oversight through transaction-level risk pricing and constant review of country exposure limits.

This vigilance has become particularly important as global economic conditions remain unpredictable. UKEF actively monitors instability indicators and adjusts its approach when sanctions affect markets or sovereign debt concerns arise. Policy considerations also inform risk assessments. 

Williamson noted that “in 2021, the UK Government said that it would have no more dealings in overseas fossil fuel projects, and we don’t do any of that now. So we’ve stepped away from overseas sort of oil and gas activity.” 

UKEF has also strategically addressed its historical reputation for slow response times through a delegated approval model. By empowering partner banks with approval authority up to £10 million per transaction, the agency has dramatically streamlined the process for UK exporters.

Williamson stated, “They are only handling the credit process with their bank, not with us.” He mentioned that around 90% of transactions receive automatic approval, while only larger deals, typically between £20 million and £30 million, require direct oversight from UKEF.

Digital transformation has further improved accessibility, with credit insurance applications now available online and the introduction of a price checker that enables exporters to estimate costs before submitting an application. The “Small Export Builder” program has eliminated buyer underwriting requirements for small initial transactions up to £25,000, with incremental increases available based on successful trading history.

Supporting exporters: From financial tools to advice

UKEF offers a comprehensive toolkit of financial instruments designed to support businesses at various stages of their export journey. Two products have proven particularly effective in the UK market – General Export Facility and Export Development Guarantee.

The General Export Facility (GEF) has become UKEF’s largest product by value, providing up to 80% guarantees to banks for working capital solutions and is quite valuable for SMEs needing financial support for export activities. 

For larger initiatives, the Export Development Guarantee supports capital investment projects. Williamson said, “For example, building a giga factory in the UK, where there will be an element of export at some point, we will help provide the funding to get that factory infrastructure built,” he added.

Beyond domestic operations, UKEF also supports overseas transactions through buyer credit, particularly in developing markets. “This is where we’re supporting financial institutions lending to corporates or sovereigns overseas, mainly in developing markets, but not solely,” said Williamson. Such arrangements require at least 20% UK content in each project, creating opportunities for British suppliers to enter global supply chains.

In addition to emphasising these tools, Williamson suggests new exporters “Come and talk to us.” He highlighted that there is strong support for exporters throughout the UK. His team and the Department of Business and Trade also have representatives in different countries to help businesses find new markets and connect with buyers.

As part of his parting advice, he stressed that exporters should “seek out advice.”