Guidance

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.

Overview

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:

  1. Read this guide to check this is the policy you need.

  2. Read the standard terms and conditions for the Supplier Credit Facility (PDF, 674KB, 10 pages)

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

  4. 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.

  5. 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.

  6. Use our country cover indicators tool to find out what cover is available the country you want to do business in.

  7. Contact customer services, to obtain an indication of how much premium you will need to pay.
  8. Fill in the Supplier Credit application form (PDF, 201KB, 20 pages)

  9. If you want supplemental export insurance with your Supplier Credit Facility, fill in the supplemental export insurance policy application form (PDF, 108KB, 6 pages)

  10. Fill in the sustainable lending questionnaire if necessary (the country cover indicators tool will tell you if you need to fill it in).

  11. Send your application form and supporting documentation to the Business Group. The address is:

Business Group
UK Export Finance
1 Horse Guards Road
London
SW1A 2HQ

Contact our customer service team to get help with your Supplier Credit Financing Facility. Call +44 (0)20 7271 8010 or email customer.service@ukef.gsi.gov.uk.

How the Supplier Credit Loan Facility works

How the supplier credit loan facility works

How the Supplier Credit Bills and Notes Facility works

How the supplier credit bills and notes 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

Risks covered

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.

Eligibility

The following criteria must be met:

  • the exporter must be carrying on business in the UK
  • the bank must be acceptable to us

Maximum amount

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

Term

The period for payment under the facility must be at least 2 years.

Cost

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
1-5 Moorgate
London EC2R 6AB
Telephone: 020 7776 4076
Fax: 020 7726 4085

AKA Ausfuhrkredit-Gesellschaft mbH
Grosse Gallustrasse 1-7
60311 Frankfurt am Main
Germany
Telephone: +49 69 29 89 11 88
Fax: +49 69 29 89 11 50

ANZ Bank New Zealand Limited
Ground Floor
ANZ Centre
23-29 Albert Street
Auckland 1010
New Zealand
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

BNP Paribas
London Branch
10 Harewood Avenue
London NW1 6AA
Telephone: 020 7595 4784
Fax: 020 7595 5686

Commerzbank AG
London Branch
30 Gresham Street
London EC2P 2XY
Telephone: 020 7475 5634
Fax: 020 7984 0148

Credit Agricole Corporate and Investment Bank
London Branch
Broadwalk House
5 Appold Street
London EC2A 2DA
Telephone: 020 7214 5517
Fax: 020 7214 7175

Deutsche Bank AG
London Branch
Winchester House
1 Great Winchester Street
London EC2N 2DB
Telephone: 020 7545 7048
Fax: 020 7547 0959

HSBC Bank plc
Project and Export Finance
Level 18
8 Canada Square
London E14 5HQ
Telephone: 020 7991 6265
Fax: 020 7992 4428

Lloyds TSB Bank plc
Corporate Markets
10 Gresham Street
London EC2V 7AE
Telephone: 020 7158 2599
Fax: 020 7158 3266

Standard Chartered Bank
1 Basinghall Avenue
London
EC2V 5DD
Telephone: 020 7885 7133
Fax: 020 7885 1133

Svenska Handelsbanken AB (publ)
Export Finance
SE-106 70 Stockholm
Sweden
Telephone (Stockholm): +46 8 -701 1211
Telephone (Manchester): 0161 602 0300
Fax (Manchester): 0161 602 0399

PDF version of this guide

Disclaimer

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.

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