Rather than giving the money to the seller, the new Direct Lending Scheme from UK Export Finance (UKEF), the government's export credit agency, will provide export credit loans directly to overseas purchasers of goods and services from UK firms that have been refused export credit finance by banks.
The £1.5 billion fund, which was first announced in the 2012 Autumn Statement, will support fixed interest loans between £5 million and £50 million to finance the purchase of capital and semi-capital goods and services from UK exporters.
The scheme will run until March 2016. UK Export Finance will directly negotiate the terms and conditions of the loan, disburse funds against the manufacture and supply of the goods and services under the respective export contract and manage the repayment of the loan.
Although UKEF's role is to take financial risks relating to non-payments for exports purchased by overseas buyers, in the past it has only been able to provide guarantees to banks for the repayment of loans rather than providing loans directly to the purchasers.
Find out more about the scheme and how to apply here.
A Direct Lending Scheme from UK Export Finance has launched to help overseas buyers purchase the goods of UK exporters, potentially boosting the chances of British businesses selling abroad.