Repeat Order Guarantee
Covers a loan with a pre-agreed credit limit to an overseas buyer to finance the repeat purchase of goods, services or intangibles from a UK supplier.
How it works
Through the Repeat Order Guarantee, we provide a guarantee to a bank making a loan to an overseas buyer for repeat orders from a UK supplier, so that the buyer can secure pre-agreed finance to support the purchase of goods and services as and when required, without the need for a new application each time.
An international buyer that has an ongoing trading relationship with a UK exporter may be seeking a loan from a bank to cover repeat orders but be unable to secure the amount required.
We can provide a guarantee to the buyer’s bank so that the buyer can secure the loan – as long as at least 20% of the contract value is sourced from UK suppliers. Our guarantee covers up to 85% of the contract value, meaning the buyer must make a 15% down payment.
Once the goods or services have been provided to the international buyer, the UK supplier can be paid from the loan immediately, while the buyer repays over a period of up to 24 months, depending on the agreement between UKEF, the buyer and the bank.
Eligibility
- At least 20% of the contract value must be UK content
- The supplier must be carrying on business in the UK
- You can check UKEF’s country cover policies to see if the country your project is based in is eligible for UKEF support.
How to apply
Complete our contact form to discuss an application. You can use our Premium Indicator Tool to see an indicative premium rate.
Once you have submitted an enquiry, we will get in touch to discuss your project in more detail and, if appropriate, ask you to complete a questionnaire. We will endeavour to give you a non-binding indication of whether we can support the deal after receiving all the requested information.
We can also help put you in touch with a lender.
If your application proceeds from there, we will complete our due diligence processes, including Financial Crime Compliance, and Environmental, Social and Human Rights (ESHR) assessments. We will also ask for detailed credit risk-related information from the international buyer. The lender will complete its own due diligence.
If the application is successful, the loan will be agreed between the buyer and the lender, and UKEF will enter into a guarantee agreement with the lender to cover the loan and make the deal effective.