UK Export Finance works closely with exporters, banks and buyers to support exports to, and investments in, markets across the world.

UK Export Finance (UKEF) is the UK’s export credit agency. It helps UK companies by providing insurance to exporters and guarantees to banks to share the risks of providing export finance. In addition, it can make loans to overseas buyers of goods and services from the UK. UKEF is the operating name of the Export Credits Guarantee Department (ECGD).

UKEF works closely with exporters, banks, buyers and project sponsors and has 90 years’ experience of supporting exports to, and investments in, markets across the world. It does this principally by providing loans to buyers of UK goods and services and guarantees, insurance and reinsurance against loss, taking into account the government’s international policies.

UK Export Finance:

  • Insures UK exporters against non-payment by their overseas buyers
  • Helps overseas buyers to purchase goods and services from UK exporters by guaranteeing or funding bank loans to finance the purchases
  • Shares credit risks with banks to help exporters raise tender and contract bonds, in accessing pre- and post-shipment working capital finance and in securing confirmations of letters of credit
  • Insures UK investors in overseas markets against political risks

UK Export Finance Products & Services

Export Finance Advisors

Export Finance Advisers are regional representatives of UK Export Finance. They act as local points of contact to introduce exporters and businesses with export potential to finance providers, credit insurers, insurance brokers, trade support bodies and sources of government support.

An exporter can make initial contact with an Export Finance Adviser either by telephone or by arranging a meeting. The Export Finance Adviser will typically focus the discussion on identifying the business’ export financing needs. This will help provide an initial indication of the options for export support available to the exporter in the private market and, where applicable, from government.

To find out more about this service and to locate your nearest Export Finance Advisor, please visit www.gov.uk/government/publications/uk-regional-export-finance-advisors#SMSB

Bond Support Scheme

Under the Bond Support Scheme UKEF provides partial guarantees to banks in support of UK exports. Where a bank issues a contract bond (or indemnifies an overseas bank providing the bond) in respect of a UK export contract, UKEF can typically guarantee up to 80% of the value of the bond.

Support can be accessed either through:

  • A standalone facility for a single export contract
  • Through a facility line for multiple export contracts with nominated buyers

To find out more about the Bond Support Scheme and for details on how to apply, please visit www.gov.uk/bond-support-scheme-overview-and-how-to-apply

Bond Insurance Policy

A bond insurance policy is for UK exporters, where a UK bank issues a bond on their behalf to an overseas buyer, or a counter-guarantee to a bank in the buyer’s country, as a condition of an export contract.

The policy protects the exporter against loss caused by:

  • The unfair calling of the bond (or any related counter-guarantee)
  • The fair calling of the bond (and any related counter-guarantee) due to certain political events

UKEF can consider cover for all types of bonds for export contracts, except tender or bid bonds. The main types of bonds that UKEF are asked to cover are advance payment bonds and performance bonds. It can also consider providing cover for reducing bonds, which are bonds under which the amount payable reduces over time or as goods or services are delivered.

To find out more about this policy and for details on how to apply, please visit www.gov.uk/bond-insurance-policy.

Export Working Capital Scheme

The scheme assists UK exporters in gaining access to working capital finance (both pre and post-shipment) in respect of specific export contracts. Under the scheme, UKEF provides partial guarantees to lenders to cover the credit risks associated with export working capital facilities. Where a lender provides such a facility in respect of a UK export contract, UKEF can typically guarantee 80% of the risk.

Support can be accessed either through:

  • A standalone facility for a single export contract
  • Through a facility line for multiple export contracts with nominated buyers

The scheme is particularly useful in circumstances where a UK exporter wins an overseas contract that is higher in value than is typical for it or succeeds in winning more overseas contracts than it has done before.

To find out more about this scheme and for details on how to apply, please visit www.gov.uk/export-working-capital-scheme-overview-and-how-to-apply

Letter of Credit Guarantee Scheme

Where a UK bank adds its confirmation to a letter of credit issued by an overseas bank to finance an export from the UK, UKEF can typically guarantee between 50% and 90% of the value of the letter of credit. The benefits of this scheme include:

  • The UK bank is able to confirm a letter of credit for the full amount where it doesn’t have risk appetite on the foreign issuing bank
  • The UK bank receives a guarantee from us to cover the percentage of the amount due to it if the foreign issuing bank fails to reimburse payments
  • The exporter is protected against a default of the foreign buyer and the foreign bank

To find out more about this scheme and for details on how to apply, please visit www.gov.uk/letter-of-credit-guarantee-scheme-overview-and-how-to-apply

Direct Lending Facility

Under the Direct Lending Facility UKEF provides loans up to £3 billion in aggregate to overseas buyers to finance the purchase of capital goods and/or services, from exporters carrying on business in the UK. Loans can be made in Sterling, US Dollars, Euro or Japanese Yen.

The Direct Lending Facility has no upper or lower loan value limit.

Interested exporters should contact the UKEF customer service team at customer.service@ukef.gsi.gov.uk in respect of enquiries for loans below £5 million, as an alternative product may be more appropriate.

Buyer Credit Facility

Under a buyer credit facility UKEF provides a guarantee to a bank that makes a loan to an overseas buyer to finance the purchase of capital goods and/or services, worth at least £5 million from an exporter carrying on business in the UK. Loans can be made in the main trading currencies (including sterling, US dollars and euro) as well as some local currencies.

To find out more about this facility and details on how to apply, please visit www.gov.uk/buyer-credit-facility