Guidance

Supplier Credit Financing Facility

Find out about our Supplier Credit Facility: its benefits, eligibility criteria and how to apply.

Our Supplier Credit Facility provides a guarantee to a bank in two scenarios.

Supplier Credit Loan Facility

Covers a loan to an overseas buyer to finance the purchase of capital goods and/or services from a UK exporter. This is typically for contracts below £5million.

Supplier Credit Bills and Notes Facility

Covers payments due under bills of exchange, or promissory notes, purchased by a bank from a UK exporter. The exporter will have received them in payment for capital goods and/or services supplied to an overseas buyer.

Benefits

The benefits of our Supplier Credit Financing Facility include:

  • the exporter 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 and can borrow at fixed or floating rates
  • the bank receives a guarantee from us for the amounts due under the bills of exchange, promissory notes or the 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 bank must be acceptable to us

All transactions supported by UKEF must satisfy:

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 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 facility starts to be repaid. Of the 15%, a down payment of at least 5% should be received upon contract signature.

The period for payment under the facility is typically 2 to 10 years. It can be shorter or longer depending on the sector and transaction requirements.

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

Cost

The premium payable for our cover is determined on a case by case basis.

How to apply

To find out more about a UKEF Supplier Credit Financing Facility or to discuss eligibility for our support, contact our customer services team.

Contact customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.

Our Supplier Credit Facility can be accessed directly through UKEF or via some banks.

Find out which banks can administer the facility.

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

Application Forms

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

Banks who take part in the Supplier Credit Facility

We issue master guarantee agreements (MGAs) to banks who take part in the Supplier Credit Financing Facility.

The MGA is only an umbrella document, which sets out the principal terms and conditions on which we will guarantee payment to banks that make finance available using the facility.

We set out the terms and conditions of cover for individual transactions when making an offer of support for a particular export contract. Once the bank has accepted an offer of cover, it is able to purchase negotiable instruments from you or make a loan to your buyer knowing that we will cover them under the master guarantee agreement.

The following banks are able to use the Supplier Credit Financing Facility:

Bank Telephone Fax
ABC International Bank plc 020 7776 4076 020 7726 4085
ANZ Bank New Zealand Limited 020 3229 2688 020 3229 2378
HSBC Bank plc (project and export finance) 020 7992 3888 020 7992 4428
Investec Bank plc 020 7597 4565 020 7597 4539
JP Morgan Chase Bank N.A 020 7742 7120 N/A
Landesbank Baden-Wuerttemberg (London) 020 7826 8000 N/A
London Forfaiting Company Ltd 020 7397 1510 020 7397 1511
Nordea Bank Abp (Helsinki) (+358) 9 53007070 or 020 7726 9000 N/A
Raiffeisen Bank International AG (Austria) (+43) 1 71707 0 (+43) 1 71707 1715

More information

Read our guide for applicants on business processes and factors, to find out how we make decisions on applications.

Published 21 April 2013
Last updated 24 April 2017 + show all updates
  1. Change to Security of Information Arrangements

  2. Updated the list of banks that hold MGAs

  3. First published.