UK Export Finance: guide to credit terms
Updated 21 May 2026
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This guide explains how UK Export Finance (UKEF) decides on credit terms where there is an exporter giving an overseas buyer time to pay, and the overseas buyer is receiving a loan that is supported by us, or the exporter has an Export Insurance Policy.
1. What is meant by credit terms?
Credit terms refer to the length of credit that is provided to a buyer or borrower along with related matters such as the amount that must be paid upfront and when the repayments must start.
2. What terms can be agreed when UKEF provides support for an export contract?
The precise credit terms that we can support for a particular export contract will vary according to the size and nature of the export contract. The credit terms we can support are usually longer than those available in the commercial market. However, we also abide by international agreements which regulate credit terms, principally the Organisation for Economic Cooperation and Development Arrangement on Officially Supported Export Credits (the OECD Arrangement).
3. Support for export contracts involving two years’ credit or more
Where we are asked to support an export contract involving credit of two years or more, the credit terms which we can offer are regulated by the OECD Arrangement. Normally, such business is supported by UK Export Finance under a Buyer Credit facility, Standard Buyer Loan Guarantee, Bills and Notes Guarantee, or a Line of Credit facility.
The OECD Arrangement regulates the credit terms in four areas:
3.1 Amount of credit that can be supported
At least 15% of the export contract’s value must be paid directly by the buyer out of its own financial resources. This means that we can support credit terms for a maximum of 85% of the contract’s value. The 15% that must be paid directly by the buyer cannot be paid out of the export credit loan.
3.2 Starting point of credit
The starting point of credit is the date at which the buyer has to start repaying an export credit loan being guaranteed by us. It is fixed according to the type of goods or services being supplied and the contractual responsibilities of the exporter.
Broadly, where the exporter is supplying goods only, the starting point of credit will be after all the goods have been exported and accepted by the buyer or, if the goods are being supplied over a long period of time, a point in time during the period of supply. If the exporter has responsibilities for installing and commissioning the goods, the starting point of credit may be when this has been completed.
3.3 Length of credit period
Under standard OECD Arrangement terms, the maximum credit period is up to 15 years.
For certain types of exports, for example, commercial aircraft, ships, renewable energy and water projects and nuclear power plants, sector specific credit terms can be agreed according to the relevant OECD Arrangement Sector Understanding.
3.4 Repayment of the credit
The loan must be repaid in equal instalments payable no less frequently than annually. The first instalment must be paid no later than one year after the starting point of credit. Interest on the export credit loan must be paid at least semi-annually, except in the case of annual repayments of principal, in which case interest shall be paid no less frequently than every 12 months.
4. Support for export contracts involving less than two years’ credit
Where we are asked to support an export contract involving less than two years’ credit, we are free to decide on a case-by-case basis the appropriate credit terms. Normally, such business is supported by us under our Export Insurance Policy, Early Project Services Guarantee, and Guarantee for Repeat Orders. For exports to some countries, we may require the buyer to make payments to you under a confirmed letter of credit, which is a secure method of payment.