Standard Buyer Loan Guarantee
Covers a loan to an overseas buyer to finance the purchase of capital goods, services or intangibles from a UK supplier in the range of £1 million to £30 million.
How it works
Through the Standard Buyer Loan Guarantee, we provide a guarantee to a bank making a loan to an overseas buyer, allowing the exporter to be paid as though it has a cash contract while the buyer can repay the loan over a longer period of time (usually two to five years).
An international buyer may be seeking a loan from a bank to undertake a project, 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’s value, meaning the buyer must make a 15% downpayment.
Once the goods or services have been provided to the international buyer, the UK supplier can be paid from the loan immediately.
The international buyer repays the loan to the bank over the agreed repayment period, which can range from two to five years (or more, depending on the agreement between UKEF, the bank and the buyer).
The Standard Buyer Loan Guarantee is typically relevant for contracts valued between £1 million and £30 million. For higher value transactions, you can access the Buyer Credit Facility.
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.
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.
