UKEF Buyer Credit Facility: help an overseas buyer finance a UK export contract

A Buyer Credit Facility can help a UK exporter win a large overseas contract by enabling a bank to lend to the foreign buyer while UKEF guarantees the lender. The exporter can receive payment under the contract while the buyer repays the financing over an agreed longer term.

The bank lends to the overseas buyer and UKEF supports the lender

UKEF's Buyer Credit Facility is structured around financing the overseas buyer or borrower. A bank provides the loan and UKEF gives the bank a guarantee under the scheme, subject to the transaction meeting eligibility and policy requirements.

The exporter benefits because the buyer gains access to financing that can make the UK contract affordable. This differs from working-capital finance for the exporter itself. The exporter's balance sheet is not automatically taking the buyer's loan, although the exporter still has commercial obligations under the sale contract.

The exporter can receive contract payments while the buyer repays over time

The facility can allow the exporter to be paid as contract milestones are met while the overseas buyer repays the lender over an agreed credit period. That can convert a long receivable into earlier cash for the exporter without asking the buyer to fund the entire purchase upfront.

Cash-flow planning should match the financing disbursement conditions. The exporter does not receive every pound simply because the facility is signed. Payments depend on contract performance, documentation and the terms of the financing agreement.

Credit terms depend on the contract and international export-credit rules

UKEF's May 2026 guide to credit terms says supported repayment periods depend on the size and nature of the export contract and are also influenced by international rules such as the OECD Arrangement on officially supported export credits. Large capital projects can therefore receive longer terms than ordinary short-term trade.

Do not promise a buyer a ten-year repayment schedule before the UKEF and lender structure has been confirmed. Agreeing commercial price, deposit and delivery schedule first without testing financeability can leave the exporter with a contract the buyer cannot fund.

The transaction needs sufficient UK content and compliance

UKEF applies UK-content requirements to contract-specific products. The exporter should prepare information showing the UK goods, services and economic activity supported by the contract. UKEF also performs anti-bribery, sanctions and other compliance checks.

Build those requirements into bid preparation. A project assembled from several countries can still be supportable, but the exporter should understand how UKEF calculates eligible UK content rather than waiting until financing is needed to reconstruct the supply chain.

Supplementary export insurance can cover some exporter risks alongside buyer finance

UKEF's 2026 Buyer Credit guidance says exporters on transactions supported by a Buyer Credit Facility can be eligible for supplementary Export Insurance Policy cover for certain contract losses. That can address risks not eliminated merely because the buyer has financing.

Insurance and buyer finance remain separate legal products. Review which risks sit with the bank, buyer, exporter and insurer. A financing structure can secure payment milestones while still leaving pre-shipment or contractual risks that need their own treatment.

Treat buyer finance as part of the sales strategy, not a last-minute banking task

For large export contracts, involve UKEF and finance providers early. The buyer's creditworthiness, sovereign context, contract value, currency and repayment period can influence whether the proposed structure works.

Sales should know which payment terms are financeable before submitting a final bid. A buyer-credit solution can be a competitive advantage because it packages the UK product with long-term financing, but it requires more documentation and lead time than an ordinary invoice.

For the exporter, model milestone cash separately from the buyer's long-term debt schedule. If the bank pays 15 percent on shipment, 70 percent on commissioning and 15 percent after final acceptance, working capital must still bridge manufacturing and delivery until each condition is met. Buyer finance does not necessarily eliminate the exporter's pre-payment cash need.

Also define who bears variation risk. Large projects often change specification, price or completion date after finance documents are signed. Sales, legal and treasury teams should know whether a variation fits the approved facility or needs lender and UKEF consent. A commercially agreed change is not automatically financeable under the original documentation.

Before signing, build a responsibility matrix covering exporter, buyer, lender and UKEF conditions. The exporter should know which documents trigger each drawdown and who confirms completion. That avoids the common project-finance problem where goods are delivered but payment is delayed because one financing certificate was never prepared.