UK Export Finance: Leading with finance - All products
Updated 23 August 2024
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1. Introduction
UK Export Finance is the UK’s export credit agency
Our mission is to advance prosperity by ensuring no viable UK export fails for lack of finance or insurance, doing that sustainably and at no net cost to the taxpayer.
Established in 1919 as the world’s first export credit agency, we help UK-based exporters of all sizes export to over 200 countries. Our support enables them to access finance and insurance when there is a lack of private sector risk appetite or capacity. We exist to complement, not compete with the private sector, and work with over 100 private credit insurers and lenders.
We are operationally and strategically aligned with the Department for Business and Trade and collaborate with government colleagues at home and abroad to ensure exporters can benefit from the full range of support available.
We work hard to understand each customer and tailor our support to provide the most appropriate solution for their needs. Our export finance managers based across the UK provide free and impartial guidance to businesses on their export finance needs. Our global network of international export finance executives are also on hand in key export markets and regions to discuss financing options available, to support the supply of UK goods and services.
Export with confidence
We help UK companies:
- win contracts by providing attractive financing terms to their buyers
- fulfil orders by supporting working capital and trade finance
- get paid by insuring against buyer default
We offer a range of innovative and flexible export finance solutions and work closely with private sector partners, including banks, who in some instances can automatically administer our guarantee. Our finance, insurance and guarantees can help businesses of all sizes access working capital, manage risks and compete on a global scale.
Over 100 years of innovation
With an open and friendly business environment, the UK is a trusted business partner for countries around the world.
Through our flexible product range, UKEF can support sovereign buyers and international large corporates with finance, loans and insurance to make their projects happen, provided they commit to procuring from the UK supply chain.
Our world-class marketing and supplier fair programme helps to connect overseas buyers with UK businesses through high profile exporter events, working with overseas embassies and buyers, UK trade associations, businesses and the Department for Business and Trade. These matchmaking events place relevant UK suppliers in front of international buyers, who are actively looking for British products and services for their overseas projects. This helps the buyer make successful commercial decisions and the supplier win overseas contracts.
| 1919 | 200+ | 60+ |
|---|---|---|
| the world’s oldest export credit agency | countries to which we can support exports | local currencies eligible for guarantees |
Flexible Finance for buyers
We work with UK exporters and overseas buyers to find the right support, with finance options, including:
- repayment terms of 2-10 years – and up to 18 years in some sectors, such as renewable energy
- flexible UK content requirements for projects supported
- capital markets refinancing
- financing in 60+ local currency options
Our financing can help buyers in both the public and commercial sectors ensure capital goods or services from the UK come with competitive terms, providing overseas project sponsors with attractive long-term financing.
We can help buyers:
- borrow at competitive interest rates from banks with the benefit of a strong guarantee backed by the UK government
- maintain flexibility, with finance that can also be used to buy supplies locally or globally, and from the UK
- aid procurement through supplier fair events which look to match demand directly with UK suppliers offering quality and innovation
Our global network
We work closely with the Department for Business and Trade, the Foreign, Commonwealth and Development Office, HM trade commissioners and British ambassadors to engage with overseas governments and multinational companies looking to buy from the UK.
Our global network of international export finance executives (IEFEs) are based in markets around the world. IEFEs are qualified practitioners of structured and export finance, with significant experience in their markets. They are the first point of contact in-country for overseas buyers, UK suppliers, contractors and all other counterparties with an interest in UK procurement.
2. Sector focus: Renewables
Unlocking the UK’s renewable energy potential
There is a world of opportunity for UK companies in the clean growth, renewable energy, and climate adaptation and resilience sectors. Our products can help UK exporters take advantage of the global appetite for renewable energy by providing specialist support to UK companies and favourable financing to their buyers.
| £2 billion | £3.6 billion | 1st |
|---|---|---|
| dedicated to clean growth projects through our Direct Lending Facility | of support for sustainable projects in 2021 | in the world for supporting sustainable projects [footnote 1] |
Leading with finance
Taiwan: Offshore wind
We provided a £200 million guarantee through our Buyer Credit Facility to help build the Greater Changhua Offshore Wind Farm in Taiwan.
East Anglia-based Seajacks won a contract to ship the materials needed to install the turbines and Trelleborg’s West Midlands operation provided cable protection systems.
Ghana: Solar-powered drinking water
UK-based Aqua Africa will use solar-powered technology to deliver 5 litres of water a day for less than a quarter of a penny.
We provided a direct loan to the Ghanaian government for the project, which will provide clean drinking water to 225,000 people across the country.
Our flexible product range can support UK exporters and overseas buyers to invest in green and clean projects.
In the UK, our General Export Facility and Export Development Guarantee can help UK exporters invest in the transition to cleaner technologies without the need of a specific export contract. For specific transactions or projects, our direct loans, insurance, and guarantees can help exporters compete for new business by providing the financing required and addressing payment risks.
We also connect UK suppliers with international buyers through our supplier fair programme – events that help UK businesses win contracts on high-impact projects around the world by introducing them to buyers on UKEF-backed projects.
We help businesses secure financing to compete in the rapidly changing global renewable marketplace.
We provide end-to-end support for renewable transactions, from connecting international buyers with UK businesses through our marketing and origination, to providing specialist financial expertise, through to project completion. As a key strategic priority for UKEF, we understand the renewable and clean growth energy sector and can bring the UK’s world-leading capability and expertise to the global market.
We work with colleagues across government - at home and abroad - and with a range of private sector partners, including banks, to find the most suitable finance solutions tailored to each transaction.
| £1.8 trillion |
|---|
| Size of global market for low-carbon exports by 2030[footnote 2] |
3. Our Products
3.1 Win contracts: buyer financing
The attractive financing terms we can offer to overseas buyers of UK goods and services can help exporters make their offering more competitive.
- Buyer Credit Facility
- Standard Buyer Loan Guarantee
- Direct Lending Facility
- Bills and Notes Guarantee
3.2 Fulfil orders: exporter guarantees
We can help companies access the support they need to fulfil a contract, giving them the confidence to take on more contracts and increase their turnover.
- Bond Support Scheme
- Export Working Capital Scheme
- General Export Facility
- Export Development Guarantee
- Supply Chain Discount Guarantee
3.3 Get paid: insurance
We can help companies manage risks in challenging markets, ensuring that they get paid even where the private market is not able to offer insurance.
- Export Insurance Policy
- Overseas Investment Insurance
- Bond Insurance Policy
4. Buyer Credit Facility
Guarantee to help overseas buyers procure from the UK
The Buyer Credit Facility provides a guarantee to a bank making a loan to an overseas buyer so that they can purchase goods, services or intangibles sourced from the UK.
Provides a guarantee for up to 85% of the contract value.
Benefits
- The exporter is paid as soon as the goods have been shipped or the services have been performed
- The buyer or borrower has time to repay the loan over a number of years and can borrow at fixed or floating rates of interest
4.1 How it works
We can provide a guarantee to a bank making a loan to an overseas buyer, so that the buyer can purchase UK goods and services.
The loan is typically repaid over a period of two years or longer. We can consider support for corporate, sovereign and public buyers on a range of structures including:
- limited recourse project finance
- Public-Private Partnerships (PPPs)
- Islamic finance (sukuk)
- lines of credit
- local currency financing – we can provide loans in over 60 local currencies
At least 20% of the contract value must be UK content and the exporter must be carrying on business in the UK. The export contract should have a value of at least £5 million (or equivalent in foreign currency). Read more about our eligibility criteria on our website.
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
5. Standard Buyer Loan Guarantee
Guarantee to help smaller purchases from UK suppliers
The Standard Buyer Loan Guarantee covers a loan to an overseas buyer to finance the purchase of capital goods, services and/or intangibles from a UK supplier in the range of £1-30 million.
Provides a guarantee for up to 85% of the contract value.
Benefits
- The supplier is paid as soon as the goods have been shipped or the services have been performed
- The buyer or borrower has time to repay the loan over a number of years and can borrow at fixed or floating rates of interest
5.1 How it works
Through the Standard Buyer Loan Guarantee, we provide a guarantee to a bank making a loan to an overseas buyer, allowing the exporter to be paid as though it has a cash contract while the buyer can repay the loan over a longer period of time (usually two to five years).
The Standard Buyer Loan Guarantee is typically relevant for contracts valued between £1 million and £30 million.
The Buyer Credit Facility can be used for higher value transactions.
At least 20% of the contract value must be UK content and the supplier must be carrying on business in the UK.
Read more about our eligibility criteria on our website.
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
6. Bills and Notes Guarantee
Guarantee to cover bills of exchange or promissory notes
The Bills and Notes Guarantee covers payments due under bills of exchange, or promissory notes, purchased by a financial institution from a UK supplier. The supplier will have received them in payment for capital goods, services and/or intangibles supplied to an overseas buyer for contracts in the range of £1-30 million.
Provides a guarantee for up to 85% of the contract value.
Benefits
- The supplier is paid as soon as the goods have been shipped or the services have been performed
- The buyer or borrower benefits from extended payment terms based on the long-dated maturity of the underlying bills of exchange or promissory notes
6.1 How it works
The UK supplier receives payment from an overseas buyer, in the form of a bill or promissory note.
The bank then purchases the bill or notes from the supplier, at a discount. The buyer makes payment under the bill or promissory note to the bank at a future date.
UKEF provides a guarantee to the bank that the buyer will pay the amount due under the bill or note.
At least 20% of the contract value must be UK content and the supplier must be carrying on business in the UK. Read more about our eligibility criteria on our website.
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
7. Direct Lending Facility
Government-backed loan to buy from the UK
The Direct Lending Facility provides a direct loan to an overseas buyer to support the purchase of goods, services or intangibles from the UK. Loans can be made for up to £200 million for a period of two years or longer.
Loans of up to £200 million provided for a period of two years or longer.
Benefits
- The exporter is paid as soon as the goods have been shipped or the services have been performed
- The buyer or borrower has time to repay the loan over a number of years and can borrow at fixed or floating rates of interest
7.1 How it works
We provide a direct loan to the overseas buyer through the arranging bank, allowing the buyer to procure goods and services from the UK.
The Direct Lending Facility has an overall limit of £8 billion, with £2 billion allocated to clean growth projects. Loans can be made in eight currencies and are allocated on a first come first served basis.
For high value projects, in excess of £50 million, the Direct Lending Facility can be provided alongside commercial finance backed by our Buyer Credit Facility.
At least 20% of the contract value must be UK content and the exporter must be carrying on business in the UK. The export contract should have a value of at least £5 million or equivalent in foreign currency. Read more about our eligibility criteria on our website.
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
8. Bond Support Scheme
Bond guarantees to help free up cash flow
The Bond Support Scheme provides an 80% guarantee to a UK exporter’s bank, in support of contract bonds. This allows the bank to increase its appetite to provide finance for the exporter.
Provides a guarantee for up to 80% of the bond’s value.
Benefits
- For the duration of the guarantee, could increase the bank’s appetite to provide finance for the exporter
- Increases working capital available to the exporter by reducing the amount of cash used as collateral to secure the bond
8.1 How it works
When an exporter wins a contract, they may be required to provide a contract bond. The exporter’s bank can issue the bonds to the buyer, but it typically requires collateral to secure the bond, in the form of a cash deposit from the exporter.
We can provide a guarantee for up to 80% of the bond’s value, meaning the bank can release the cash collateral back to the exporter to use as working capital.
There is no maximum value for each bond and no maximum or minimum term for a guarantee. We can support a range of bond types including bid, advance payment, performance, retention and warranty bonds.
How to apply
Exporters should discuss their application with their bank – certain banks are able to access the scheme directly.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
9. Export Working Capital Scheme
Working capital to help fulfil orders
The Export Working Capital Scheme provides a partial guarantee to a UK exporter’s bank in support of working capital facilities linked to specific export contracts. Our guarantee supports the bank to offer the facility to the exporter, which helps free up cash flow for the exporter to fulfil additional orders.
Provides a guarantee for up to 80% of the risk.
Benefits
- Useful when an exporter wins a higher value contract than normal or needs to fulfil more contracts than it has in the past
- For the duration of the guarantee, could increase the bank’s appetite to provide finance to the exporter
9.1 How it works
When an exporter wins a high value contract or needs to fulfil more contracts than usual, they may require a working capital facility linked to the contract to complete the order.
We can provide their lender with a partial guarantee for up to 80% of the credit risk of this facility, pre- and post-shipment.
Our guarantee supports the bank to provide the exporter with the working capital facility, in turn providing the exporter with more cash to fulfil orders.
There is no minimum or maximum value for the working capital facility.
How to apply
Exporters should discuss their application with their bank – certain banks are able to access the scheme directly.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
10. General Export Facility
Working capital for exporters to grow their business
The General Export Facility provides a partial guarantee to a UK exporter’s bank to help the exporter gain access to trade finance facilities. Our guarantee can unlock working capital to support business growth – without being tied to a specific export contract.
Provides a guarantee for up to 80% of the lender’s risk.
Benefits
- More flexibility – no need for a facility tied to a specific export contract
- Greater certainty – non-contract specific facilities allow exporters to focus on their overall growth without worrying whether an export opportunity will be deemed supportable or not
- Improved accessibility – we’ve provided delegated authority to participating banks for up to £5 million per UK exporter
10.1 How it works
The General Export Facility can help exporters that want to increase their export volumes but need extra cash to take on new orders.
We can provide a guarantee to the bank, helping exporters access a range of trade finance facilities to help grow their business.
The General Export Facility can support facilities of up to £25 million. For larger facilities, the Export Development Guarantee may be more suitable.
Among other eligibility criteria, applicants must be able to demonstrate that:
in any one of the last three financial years, at least 20% of their annual turnover has been made up of export sales
or
in each of the last three financial years, at least 5% of their annual turnover has been made up of export sales
How to apply
Exporters should speak to their bank about their application. Participating banks can automatically provide a UKEF guarantee for applications meeting certain criteria.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
11. Export Development Guarantee
Access high value loan facilities to invest in exporting
The Export Development Guarantee provides a partial guarantee to a UK exporter’s bank in support of high value facilities for working capital or capital expenditure to help businesses invest in exporting capacity - without being tied to a specific export contract.
Provides a guarantee for up to 80% of the lender’s risk.
Benefits
- Gives the exporter the flexibility to bid for multiple contracts with a secure source of working capital
- Provides extra financing capabilities for scaling up exporting activity
- Supports investment into activities to increase exports
11.1 How it works
We provide a guarantee to lenders in support of general working capital or capital expenditure to invest in exporting.
The Export Development Guarantee has a repayment period of up to five years (10 years for clean growth) and is suitable for bank facilities above £25 million – for smaller transactions the General Export Facility may be more suitable. The EDG can be used by current and future exporters – including foreign companies – who are not currently exporting but have plans to.
Applicants must already be exporters and carry on business in the UK and should be able to demonstrate that:
in any one of the last three financial years, at least 20% of their annual turnover has been made up of export sales
or
in each of the last three financial years, at least 5% of their annual turnover has been made up of export sales
or
applicants must submit a business plan demonstrating how they plan to export 10% of their turnover from the UK
How to apply
Applicants should contact their bank in the first instance.
To learn more about the Export Development Guarantee, contact our Customer Services team.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
12. Supply Chain Discount Guarantee
Discount invoices to improve liquidity
The Supply Chain Discount Guarantee helps exporters to better support companies in their supply chain by allowing them to discount their invoices and get paid earlier. We give a guarantee to banks who provide the supply chain facilities to their exporter customers.
Provides a guarantee for up to 80% of the lender’s risk.
Benefits
- Increases an exporter’s ability to provide ongoing financial support to its suppliers, boosting the capacity of its supply chain finance arrangements
- Expands an exporter’s borrowing capacity and offers greater certainty to exporters and suppliers
- Improves suppliers’ liquidity position by allowing them to convert invoices into cash, which can help them secure additional orders
12.1 How it works
We provide a guarantee to the lender in support of a Supply Chain Discount Facility they provide to the exporter. As a supplier provides goods and/or services to the exporter, invoices raised by the supplier and approved by the exporter can then be paid by the bank from this facility, in advance and at face value, less a discounting fee as a cash advance. The exporter then repays the bank in full at the end of the agreed credit period. Applicants must already be exporters and carry on business in the UK and should be able to demonstrate that:
in any one of the last three financial years, at least 20% of their annual turnover has been made up of export sales
or
in each of the last three financial years, at least 5% of their annual turnover has been made up of export sales
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
13. Export Insurance Policy
Insurance to export with confidence
The Export Insurance Policy (EXIP) insures businesses against the risk of not being paid for export contracts, or of not being able to recover the costs of performing that contract because of certain events. We can provide cover even when the private market is not able to offer insurance.
Provides cover for up to 95% of the contract’s value.
Benefits
Covers against loss due to risks outside of the exporter’s control
13.1 How it works
In carrying out an export contract, the exporter may incur costs before delivering goods or providing services to the buyer (for example, purchasing raw materials). Alternatively, as goods are delivered, the exporter may be entitled to payments under the terms of the contract which are not made.
The Export Insurance Policy can provide cover for unforeseen events, such as:
- buyer insolvency
- the buyer’s failure to pay amounts due to the exporter
- political, economic or administrative events outside the UK that prevent payment being made in foreign currencies
- hostilities or civil disturbances
The premium payable for our cover is determined on a case-by-case basis.
How to apply
We work with more than 40 approved brokers to deliver our EXIP.
They can provide information about private sector options, in addition to UK Export Finance support.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
14. Overseas Investment Insurance
Protect overseas investments
An Overseas Investment Insurance (OII) policy provides cover for UK investors against losses resulting from defined political events in connection with the overseas investment.
Covers up to 90% of the loss.
Benefits
- Can provide cover in challenging markets where the private market may be unwilling to offer cover, or popular markets where limits have been reached
- Can maintain the same premium and terms for up to 15 years, or adjust the value of cover at each annual renewal
14.1 How it works
The OII policy can cover up to 90% of losses and apply to shareholder loans or equity investments (for example, the purchase of shares or direct investment).
Full details of the risks covered are set out in the policy, but they include:
- damage directly caused by war, civil war, revolution, insurrection, sabotage or terrorism in the host state (including physical damage and the inability to complete or operate a project)
- expropriation attributable to the host government, which constitutes an outright taking, or prevents the insured’s exercise of its fundamental rights in the project company
- restrictions on remittances (including exchange controls imposed by the host state)
The investor must be based in and doing business in the UK and the investment must be long-term, intended for a period of at least three years and be made in an enterprise outside the UK.
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
15. Bond Insurance Policy
Bond insurance to export with confidence
The Bond Insurance Policy insures UK exporters against demands for payment under a bond or a counter-guarantee to an overseas buyer that is unfair or caused by certain political events. We can provide cover even when the private market is not able to offer insurance.
Provides cover for up to 100% of the contract’s value.
Benefits
- Protects against losses suffered because of unfair calls on the bond
- Protects against fair calls on the bond caused by certain political events
15.1 How it works
For some export contracts, the UK bank may need to issue a bond to an overseas buyer on behalf of the UK exporter. Or the bank may issue a counter-guarantee to a bank in the buyer’s country.
The Bond Insurance Policy can protect the exporter from demands for payment in specific situations, including some political events. We can consider cover for all types of bonds for export contracts, except tender or bid bonds.
The premium payable for our cover is determined on a case-by-case basis.
How to apply
Visit our website for more information and how to make an application.
Get in touch
Customer service
Email [email protected]
Telephone +44 (0)20 7271 8010
16. Disclaimer
Whereas every effort has been made to ensure that the information in this product guide is accurate, UK Export Finance does not accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. The information available in this product guide is not intended to be a comprehensive description of UKEF’s products. Many details relevant to particular circumstances may have been omitted. Applicants for products must read the full policy or guarantee to see whether it meets their needs. When considering applications, underwriters will look at each case on its merits.
© Crown Copyright 2021
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