Supply Chain Discount Guarantee
Find out about our Supply Chain Discount Guarantee: its benefits, eligibility criteria and how to apply.
Our Supply Chain Discount Guarantee (SCDG) is a guarantee that helps UK exporters access Supply Chain Finance (SCF) facilities provided by a commercial lender. The facility allows an exporter’s suppliers to draw on it to discount approved invoices. The exporter then makes payment to the bank at the face value of the invoice at maturity.
We can provide partial guarantees covering up to 80% of the risk of the exporter failing to repay the financing bank under the Supply Chain Finance facility.
Benefits
The Supply Chain Discount Guarantee provides additional capacity to support Supply Chain Finance facilities.
The benefits of SCDG for UK exporters include:
- longer payment terms
- the ability to provide ongoing financial support to suppliers, improving supply chain stability
- extra financing capacity
- offering greater certainty to exporters and their suppliers, as UKEF’s guarantee improves the facility’s stability
There are also numerous indirect benefits for suppliers:
- faster access to cash at advantageous rates
- improved prospects of securing additional orders due to improved liquidity
- increased liquidity enhancing suppliers’ ability to upgrade capital equipment, engage in research and development or upgrade production in-step with exporters
Eligibility criteria
The exporter must satisfy UKEF’s eligibility criteria, which includes the requirement that:
- in any one of the last three financial years, at least 20% of their annual turnover has been made up of UK export sales
Or:
- in each of the last three financial years, at least 5% of their annual turnover has been made up of UK export sales
The exporter must be carrying on business in the UK, either by manufacturing goods in the UK, delivering services from the UK or providing intangibles from the UK. The exporter must have both premises and employees in the UK.
All transactions supported by UKEF must satisfy our:
Cost
The fee payable for our cover is determined on a case-by-case basis.
Charges are based upon the usage of the facility.
How to apply
To find out more about a UKEF Supply Chain Discount Guarantee, or to discuss eligibility for our support, contact our customer services team.
Email [email protected] or call +44 (0)20 7271 8010.
The Supply Chain Discount Guarantee is currently available on a case-by-case basis.
More information
Read our guide for applicants on business processes and factors, to find out how we make decisions on applications.