Short answer
UK Export Finance (UKEF) is the UK government's export credit agency. It helps UK businesses export by supporting the finance and insurance they need: mainly guarantees to banks and lenders, plus some direct lending and insurance. Smaller exporters usually access UKEF support through a participating lender, under schemes such as the General Export Facility.
Key facts
- A UK government department, the UK's export credit agency
- Supports exporters through guarantees, loans and insurance
- Smaller businesses usually access it through participating lenders
- The General Export Facility covers facilities up to around £25m, with terms of up to five years
What does UKEF do?
UKEF exists to make sure no viable UK export fails for lack of finance or insurance from the private market. It takes on part of the risk that banks and lenders won't, so they can support more exporters. It also supports overseas buyers of UK goods and services in some cases.
How smaller businesses use UKEF
Most SMEs don't deal with UKEF directly. Instead, they borrow from a bank or specialist lender that participates in a UKEF scheme. The lender applies for UKEF's guarantee, and many applications under the General Export Facility are approved by the lender itself under delegated authority.
What does a UKEF guarantee mean for you?
The guarantee is between UKEF and the lender. It reduces the lender's risk, which can mean you get a facility you otherwise wouldn't, or on better terms. It doesn't reduce what you owe: you repay the lender in full. The lender pays UKEF a fee for the guarantee, usually linked to the facility's interest margin.
Related: Export Finance →
Related questions
Is UKEF the same as the Department for Business and Trade?
No. UKEF is a separate government department focused on export finance and insurance, though it works closely with the Department for Business and Trade.
Can I apply to UKEF directly?
For many products, you go through a participating lender. UKEF's website lists contact routes for other products.