Exporters in the UK are expected to benefit from letters of credit (L/Cs) backed by a UK government department and made available through privately owned trade finance provider, Synergy in Trade.

Established in 2006, Synergy in Trade is one of a growing band of non-bank providers that have emerged over recent years to offer L/C and other trade finance services.

UKEF backing

UK Export Finance (UKEF) is backing £1 million of additional support to Synergy in Trade to help UK companies grow through overseas trade.

According to the UK-based trade finance provider, the UKEF backing will allow it to expand its funding and facilitate greater export opportunities through new L/Cs and back-to-back L/Cs.

Credit line

The UK government's support is being provided through HSBC, which is extending its credit line by £1 million to Synergy in Trade.

It says it already operates multi-million pound finance facilities focused primarily on small- and medium-sized enterprises (SMEs), while the new credit line will enable it support even more such businesses.

SME focus

The scheme is one of several new products launched recently by UKEF focused on supporting the SME sector. Such products have so far supported over £175m worth of contracts.

UKEF is the new trading name for the UK government department and export credit agency that is still formally called the Export Credits Guarantee Department.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.