Through the Standard Buyer Loan Guarantee, UK Export Finance (UKEF) provides a guarantee to a bank making a loan to a non-UK buyer, allowing the UK 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).

A non-UK buyer may be seeking a loan from a bank to undertake a project, but be unable to secure the amount required. UKEF 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. UKEF’s guarantee covers up to 85% of the contract’s value, meaning the buyer must make a 15% down payment.

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 UKEF's Buyer Credit Facility.