Bills and Notes Guarantee
Find out about our Bills and Notes Guarantee: its benefits, eligibility criteria and how to apply.
The Bills and Notes Guarantee (BNG) 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. This is typically relevant for contracts between £1 million to £30 million.
Benefits
The benefits of our Bills and Notes Guarantee include:
- the supplier is paid as soon as the goods have been shipped and/or services performed
- the buyer or borrower has time to pay over a number of years at fixed rates
- the financial institution receives a guarantee from us for the amounts due under the bills of exchange or promissory notes
Eligibility criteria
The transaction must satisfy UKEF’s eligibility criteria, which includes the requirements that:
- the supplier must be carrying on business in the UK
- the financial institution must be acceptable to us
All transactions supported by UKEF must satisfy:
- our foreign content policy
- our anti-bribery and corruption and environmental, social and human rights due diligence processes
The transaction may not be supported if there are sanctions imposed on the country of the buyer or borrower. The maximum amount that can be made available under the facility is 95% of the contract value. A minimum of 5% of the contract value must be paid directly to the supplier by the buyer before the facility starts to be repaid.
The period for payment under the facility is typically 2 to 5 years. It can be shorter or longer depending on the sector and transaction requirements.
Check our country cover indicators to find out what cover is available for the country or territory you want to do business in.
Cost
The fee payable for our cover is determined on a case-by-case basis.
How to apply
UKEF works with a range of financial institutions to deliver this support. To find out more about a Bills and Notes Guarantee or to discuss eligibility for our support, contact our customer services team.
Contact [email protected] or call +44 (0)20 7271 8010.
Our application forms are also available if you’re ready to make an application.
Application Forms and Product Documentation
Check our country cover position, and make an application.
More information
- Read our guide for applicants on business processes and factors, to find out how we make decisions on applications
- Read our position on Financial Crime Compliance
Additional note
In accordance with the OECD Arrangement on Officially Supported Export Credits, the maximum amount that can be made available under the facility is normally 85% of the export contract value. However, for a temporary period this has been increased to 95% of the contract value for some transactions for sovereign or public buyers (with a guarantee by the Ministry of Finance or the central bank) in Category II countries with a country risk category of 5, 6 or 7.
In the majority of cases, a minimum of 5% of the contract value must be paid directly to the supplier by the buyer before the facility starts to be repaid. Transactions may benefit from the temporary changes provided that applications are received by 13 December 2024, and the date of the final commitment is within 18 months of the end of the validity period, i.e. by 13 June 2026.
It does not apply to transactions following the Aircraft Sector Understanding (ASU).
Updates to this page
Published 16 November 2022Last updated 26 January 2024 + show all updates
-
The additional note has been amended.
-
Fillable version of application form attached.
-
First published.