Bond Support Scheme
Provides a partial guarantee to your bank in support of contract bonds, increasing your bank’s appetite to provide finance.
How it works
When you win an export contract, you may need to provide a contract bond to your buyer. Your bank can issue the bond, but it will typically require collateral from you to secure the bond – usually in the form of a cash deposit. This can tie up cash that you could be using to fulfil the order.
We can provide a guarantee for up to 80% of the bond’s value, meaning your bank can release the cash collateral back to you to use as working capital.
There is no maximum value for each bond and no maximum or minimum term. We can support a range of bond types including bid, advance payment, performance, retention and warranty bonds.
Eligibility
To be eligible for support under our Bond Support Scheme, the transaction must satisfy UKEF’s eligibility criteria, which includes the requirements that:
-
- the exporter must be carrying on business in the UK
- the exporter must have entered, or be intending to enter, into a contract for the supply of goods and/or services with a company or other organisation that carries on business outside the UK
How to apply
Complete our contact form to discuss an application.
Bond Insurance
UK Export Finance can also provide a Bond Insurance Policy, which provides insurance against demands for payment under a bond or a counter-guarantee to an overseas buyer that is unfair or caused by certain political events.