Supplier Credit Financing Facility
How to apply for a Supplier Credit Financing Facility from UK Export Finance - how it works, its benefits, and its main features.
Under a Supplier Credit Financing Facility, we provide a guarantee to a bank either:
- for a loan to an overseas buyer to finance the purchase of capital goods and/or services from an exporter carrying on business in the UK – known as a Supplier Credit Loan Facility
- to cover payments due under bills of exchange or promissory notes purchased by a bank from an exporter carrying on business in the UK, who has received them in payment for capital goods and/or services supplied to an overseas buyer – known as a Supplier Credit Bills and Notes Facility
Finance can be made available in the main trading currencies (including sterling, US dollars and euro). Other currencies can be considered.
How to apply
The steps to apply for a Supplier Credit Financing Facility are:
Read this guide to check this is the policy you need.
Read the standard terms and conditions for the Supplier Credit Facility (PDF, 674KB, 10 pages)
Read the guide for applicants on business processes and factors, to find out how we make decisions on applications.
Read the quick quick quide to credit terms (PDF, 323KB, 2 pages) related to the export contracts we are asked to support, which includes what is meant by credit terms, what terms can be agreed, the amount of credit that can be supported, starting point of credit, length of credit and repayments of credit.
Read the guide to recourse, which includes what recourse is, when it is sought and required, when we exercise recourse, from whom it is sought, the amount of recourse, release from recourse and the Lloyds recourse indemnity policy.
Use our country cover indicators tool to find out what cover is available the country you want to do business in.
- Contact customer services, to obtain an indication of how much premium you will need to pay.
Fill in the Supplier Credit application form (PDF, 213KB, 20 pages)
If you want supplemental export insurance with your Supplier Credit Facility, fill in the supplemental export insurance policy application form (PDF, 108KB, 6 pages)
Fill in the sustainable lending questionnaire if necessary (the country cover indicators tool will tell you if you need to fill it in).
- Send your application form and supporting documentation to the Business Group. The address is:
UK Export Finance
1 Horse Guards Road
Contact our customer service team to get help with your Supplier Credit Financing Facility. Call +44 (0)20 7271 8010 or email firstname.lastname@example.org.
How the Supplier Credit Loan Facility works
How the Supplier Credit Bills and Notes Facility works
Benefits of supplier credit financing
The benefits are:
- 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
The bank is protected against non-payment under the guaranteed bills of exchange, promissory notes or loan. However, the bank must take the documentation risk and will therefore need to ensure that the loan agreement and/or the bills or notes is/are legally enforceable.
The following criteria must be met:
- the exporter must be carrying on business in the UK
- the bank must be acceptable to us
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.
We can consider support for foreign content (the cost to the exporter of purchasing goods or services from sub-contractors outside the UK) of up to 80% of the contract’s value
The period for payment under the facility must be at least 2 years.
There is no fee for the application. The premium payable for our cover is determined on a case by case basis.
Banks that hold MGAs for the Supplier Credit Facility
We issue master guarantee agreements (MGAs) to banks who take part in the Supplier Credit 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 Facility:
ABC International Bank plc
London EC2R 6AB
Telephone: 020 7776 4076
Fax: 020 7726 4085
ANZ Bank New Zealand Limited
23-29 Albert Street
Telephone (London): 020 3229 2688
Fax (London): 020 3229 2378
Barclays Bank PLC
5 The North Colonnade
London E14 4BB
Telephone: 020 3555 5123
Fax: 020 7516 8431
Credit Agricole Corporate and Investment Bank
5 Appold Street
London EC2A 2DA
Telephone: 020 7214 5517
Fax: 020 7214 7175
Deutsche Bank AG
1 Great Winchester Street
London EC2N 2DB
Telephone: 020 7545 7048
Fax: 020 7547 0959
HSBC Bank plc
Project and Export Finance
8 Canada Square
London E14 5HQ
Telephone: 020 7991 6265
Fax: 020 7992 4428
Investec Bank plc
2 Gresham Street
London EC2V 7QP
Telephone: 020 7597 4565
Fax: 020 7597 4539
Lloyds Bank plc
Global Transaction Banking
25 Gresham Street
London EC2V 7HN
Telephone: 020 7354 7400
Fax: 020 7158 3266
Standard Chartered Bank
1 Basinghall Avenue
Telephone: 020 7885 7133
Fax: 020 7885 1133
Svenska Handelsbanken AB (publ)
SE-106 70 Stockholm
Telephone (Stockholm): +46 8 -701 1211
Telephone (Manchester): 0161 602 0300
Fax (Manchester): 0161 602 0399
PDF version of this guide
- Supplier credit financing facility: how to apply (PDF, 271KB, 3 pages)
The information available in this brochure is not intended to be a comprehensive description of our products and procedures, and many details which are relevant to particular circumstances may have been omitted.
When considering applications, our underwriters will look at each case on its merits.
The brochure was last updated in April 2014.
Customer services +44 (0)20 7271 8010