Buyer Credit Facility

Our Buyer Credit Facility provides a guarantee to a bank making a loan to an overseas buyer, so that capital goods, service and/or intangibles can be purchased.

This facility enables the exporter to receive payment up-front as though it was a cash contract, while the buyer can access extended repayment terms.

The loan is typically repaid over a period of 2 years or longer by the borrower, while the exporter receives payment via the credit facility as amounts fall due under the export contract.

Loans can be made in the main trading currencies, as well as more than 60 local currencies.

UKEF can consider support for corporate (private), sovereign and public buyers. Our flexible support can be used for a range of structures including:

• limited recourse project finance
• Islamic finance (sukuk)
• Public-Private Partnerships (PPPs)
• capital markets refinancing

Benefits

The benefits of our Buyer Credit Facility include:

• the exporter is paid as though it has a cash contract, subject to the terms and conditions of the loan agreement and that loan continuing to be made available to the borrower.
• the buyer or borrower has time to pay over a number of years and can borrow at fixed or floating rates
• the lending bank is protected against non-payment, for whatever reasons, of the instalments of principal and interest due under the guaranteed loan.

Eligibility criteria

The transaction must satisfy UKEF’s eligibility criteria, which includes the requirements that:

• the exporter must be carrying on business in the UK
• the export contract must have a value of at least £5 million or the equivalent in foreign currency
• the bank making the loan must be acceptable to us
• the period for repayment of the loan must be at least 2 years

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 overseas buyer.

The maximum amount that can be made available under the loan is 85% of the contract value. A minimum of 15% of the contract value must be paid directly to the exporter by the buyer before the loan starts to be repaid.

Check our country cover indicators to find out what cover is available for the country you want to do business in.

Buyer Credit Facility: additional features

Supplementary export credit insurance

Exporters who win export contracts for deals which are in receipt of a UKEF Buyer Credit Facility may be eligible for a supplementary Export Insurance Policy (EXIP).

UKEF can insure exporters for up to 95% of potential losses caused by certain risks under an export contract. Our page on  UKEF export credit insurance contains full details.

Unlike standalone export insurance policies, if the insurance is supplementary to a deal which UKEF is financing through the Buyer Credit Facility, private market refusal is not part of the eligibility criteria.

Exporters can apply for supplementary export credit insurance by filling in the Proposal Form and submitting it directly to the underwriting team in UKEF overseeing the related buyer financing deal.

How to apply

Our application forms are also available if you’re ready to make an application.

Applicants are also required to complete the Party Compliance Questionnaire.

Application forms

Make an application. Depending on our country cover position, you may also need to submit a sustainable lending form.

• Buyer Credit application form (PDF, 372 KB, 22 pages)
• Schedule to the Buyer Credit application form (PDF, 340278 KB, 11 pages)
• sustainable lending form

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