Quick guide to Buyer credit facility
This page is about UK Export Finance's buyer credit facility and explains what a buyer credit is, how it works, its benefits, its key features and how to apply for the facility.
What is a buyer credit?
Under a buyer credit facility we provide a guarantee to a bank that makes a loan to an overseas buyer to finance the purchase of capital goods and/or services, worth at least £5 million from an exporter carrying on business in the UK. Loans can be made in the main trading currencies (including sterling, US dollars and euro) as well as some local currencies.
How does it work?
What are the benefits of buyer credit?
The benefits are:
- the exporter is paid as though it has a cash contract;
- the buyer or borrower has time to pay over a number of years and can borrow at fixed or floating rates;
- the lending bank receives a guarantee from us for full repayment of the loan plus interest.
Risks covered
The lending bank is protected against non-payment, for whatever reasons, of the instalments of principal and interest due under the guaranteed loan.
Eligibility
The following criteria must be met:
- 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.
Maximum amount
The maximum amount that can be made available under the loan is 85 per cent of the contract value. A minimum of 15 per cent of the contract value must be paid directly to the exporter by the buyer before the loan starts to be repaid.
We can consider support for foreign content (that is, the cost to the exporter of purchasing goods or services from sub-contractors outside the UK) of up to 80 per cent of the export contract’s value.
Term
The period for repayment of the loan must be at least two years.
Cost
There is no fee for the application. The premium payable for our guarantee is determined on a case by case basis.
How to apply
Contact customer services, whose details you can find on the right hand side of this page.
Disclaimer
The information available in this brochure is not intended to be a comprehensive description of our buyer credit facility and many details which are relevant to particular circumstances may have been omitted.
When considering applications, underwriters will look at each case on its merits.
The brochure was last updated in May 2010.
To download the pdf go to the Quick guide to buyer credit facility which you can find on the right hand side of this page.
Go to the buyer credit facility application form, which you can find on the right hand side of this page, to find the application form, guide for applicants on business processes and factors, guide on credit terms, guide on recourse, guide on interest rates and fixed rate export finance scheme and environmental impact questionnaire and sustainable lending questionnaire,
