Businesses looking to sell goods or services overseas may struggle to secure the right finance and insurance. This is where UK Export Finance (UKEF) becomes useful. UKEF is the UK government’s official export credit agency (ECA). Previously known as the Export Credits Guarantee Department (ECGD), the ECA was founded in 1919 with the aim of supporting British exporters in recovering the trade lost during the submarine blockade of World War I.
Its core purpose today? To ensure that no viable UK export fails for lack of finance or insurance and to do so at no net cost to the taxpayer.
UKEF BY THE NUMBERS (2024–2025)
How Does UKEF Work?
UKEF is not a direct lender as it acts as a government-backed guarantor. The institution sits in the background while enabling banks and other lenders to offer financing options they would typically not be willing to or unable to provide.
When the UKEF backs a transaction, they typically cover up to 80% to 85% of the risk. This means that the lender has more of a guarantee and more reason to lend the money. The UKEF works with 70 private credit insurers and lenders that range from high street banks to specialist trade finance providers. They support businesses of all sizes, across a range of industries.
Key UKEF Products Explained
General Export Facility (GEF)
A flexible working capital facility not tied to a specific export contract. UKEF guarantees up to £10 million per exporter through participating banks, and in many cases, approval can be automatic if set criteria are met, making it ideal for fast-moving businesses that don’t want to wait. Facilities can go up to around £25 million for larger needs.
Buyer Credit Facility
UKEF guarantees a loan made by a UK bank to an overseas buyer, which allows them to purchase UK goods and services. The Buyer Credit Facility covers up to 85% of the contract value, it supports transactions in over 60 countries, and accommodates complex structures like project finance, public-private partnerships, and Shariah-compliant (Islamic Sukuk) arrangements.
Export Insurance Policy
The Export Insurance Policy protects UK exporters against the risk of non-payment by overseas buyers. This may be due to a range of reasons, such as commercial insolvency or political events. This assurance is useful in emerging or volatile markets where the private insurance sector may be unable or unwilling to provide cover.
Direct Lending Facility
Where no private lender will step in, UKEF can lend directly to overseas buyers. Individual loans can reach up to £200 million, with an overall programme ceiling of £13 billion. Loans are offered at fixed interest rates in compliance with OECD international rules.
Bond Support Scheme
Helps exporters obtain performance bonds from their bank without tying up working capital. UKEF provides a counter-guarantee to the bank, freeing up cash that might otherwise be locked in bonding facilities, a common pain point for exporters working on large international contracts.
Export Development Guarantee
The Export Development Guarantee supports investing in growth and expansion, and does not require a specific export contract in place. This works well for businesses looking to scale into new international markets or choosing to change operations.
UKEF and Clean Growth
The UKEF has prioritised sustainable and clean growth finance. The UKEF ended all their future support of international fossil fuel projects. This decision has placed the UKEF amongst the most Paris Agreement-aligned export credit agencies in the world. Across 2024 and 2025 alone, the UKEF issued £2.3 billion in clean growth financing.
Key Facts: UKEF at a Glance
- Founded: 1919, the world’s first export credit agency
- Legal basis: Export and Investment Guarantees Act 1991
- Maximum commitment: £80 billion
- 2024–25 support: £14.5 billion across 667 businesses
- Jobs supported: 70,000 UK jobs in 2024–2025
- Clean growth financing: £2.3 billion in 2024–2025
- Currency support: Over 60 currencies
- Fossil fuels: No new overseas support
- Cost to taxpayer: Operates at no net cost; charges risk-based premiums
- SME focus: 74% of businesses supported in 2024–2025 were SMEs
How Funding Bay Can Help You Access UKEF
Navigating the world of export finance, UKEF products, approved lenders, and eligibility criteria can be complex. That’s where Funding Bay comes in.
Since 2017, Funding Bay has helped UK businesses raise over £100 million in funding, working with a panel of over 250 lenders, including those accredited to offer UKEF-backed facilities. Our role is simple: we act as the matchmaker between businesses that need capital and the lenders who can provide it, so your management team can stay focused on what they do best.
Our growing team merges hundreds of years of SME and finance experience, and we’re passionate about helping businesses grow. You can see that in the reviews we’re proud to have earned.
Why work with Funding Bay for export finance?
- Access to 250+ lenders, including UKEF-approved partners
- Hundreds of years of combined SME and finance expertise
- End-to-end support from initial enquiry through to funding
- Over £100 million raised for UK businesses since 2017
- Dedicated to inclusive growth across all regions of the UK
Ready to explore export finance for your business? Get in touch with the Funding Bay team today.
