SANTANDER Corporate Banking is extending its support for UK exporters after signing up to the Government’s new Bond Support Scheme and Export Enterprise Finance Guarantee.

Bonds and guarantees are used to secure payment to the beneficiary against failure by a supplier or contractor to perform under an agreed contract.

The Export Credits Guarantee Department’s (ECGD) newly-launched Bond Support Scheme enables Santander and ECGD to share the credit risk thereby, where possible, helping Santander increase the amount of bonds and guarantees it underwrites for its UK commercial and corporate customers.

The scheme covers Santander’s full range of commercial bonds and guarantees, such as bid bonds, performance bonds and advance payment bonds, currently available for commercial and corporate customers.

Santander will now also be offering additional short-term trade finance to smaller exporters as part of the Government-backed Export Enterprise Finance Guarantee (Ex-EFG).

Companies with a turnover of up to £25 million, but which lack the usual security requirements, can apply for finance of up to £1 million for a period of up to two years.

The Export Enterprise Finance Guarantee can be used to finance working capital for export orders, trade finance lines, trade bonds, guarantees and indemnities, short-term trade loans and invoice finance to foreign debtors.

For instance, companies can use Ex-EFG to fund export orders, to finance marketing overseas, set up overseas offices or appoint overseas agents.

Steve Pateman, head of Santander corporate and business banking, said: “Exporters play a fundamental role in securing the UK’s economic recovery so it is crucial they are able to access the finance they need.

“By signing up to these schemes, we will be able to help even more businesses realise their international business aspirations, in turn generating jobs and boosting the economy.”

Alongside the Bond Support Scheme, Santander has also signed-up to ECGD’s Letter of Credit Guarantee Scheme with respect to the confirmation or negotiation of letters of credit.

Letters of credit are used by UK exporters to secure payment from overseas buyers, especially those located in emerging markets.

All the products mentioned are subject to eligibility and credit criteria of Santander, ECGD and the Department for Business, Innovation and Skills.