MONEY TRICKY TRICKS : A LOAN WHICH IS GUARANTEED BY THE GOVERNMENT.

Because our government is concerned to promote exporting of British goods to overseas markets there is a great deal of government sponsored finance available to the firm or individual who wishes to sell British goods to overseas customers.

The government runs an export credit programme which provides insurance against political and commercial risks involved when selling to foreign buyers and to maximise the attractiveness of terms offered to overseas customers.

Banks are part of the infrastructure which provides finance and expert advice for exporters and export agencies. The government Export Credits Guarantee Department (ECGD) provides insurance guarantees and a level of subsidy to assist in maximising the level of goods exported from the UK. It is in the interest of the government, and likewise in the overall interests of the people of Britain, to ensure that the highest possible amount of British goods are sold abroad to attract wealth to our country.

With the backing of the ECGD, finance can be obtained in many and various ways. A supplier can insure up to 95% of his receivables with ECGD and assign the proceeds of this insurance policy to a bank. This will enable him to obtain finance from the bank on terms much more attractive than would otherwise be available.

The ECGD will provide an unconditional guarantee for 100% of the principal and interest of any loan acquired for the specific purpose of financing an export deal. If for any reason the exporter is not paid by the buyer, he has recourse through his ECGD insurance policy, to receive payment, providing he has not breached the terms of his contract.

Full details of this loan guarantee and insurance system are available from the overseas trade departments of any major clearing bank.

Further government guarantees on loans for business enterprise, and even outright grants, are available in certain areas of the country. If you wish to start up a business which will create jobs in an area of high unemployment there are very attractive financial packages available.

Your local council and government economic development bodies will let you know what is available, for what purposes, and in which areas. Local area economic and business development projects can be contacted through addresses in the telephone directory or by getting in touch with your local Chamber of Commerce.