This section explains briefly the products and services that ECGD provides to its customers.

EXPORT CREDIT INSURANCE (ECI) - THE FACILITIES

• Buyer Credit Facility
  Under a Buyer Credit Facility, a bank makes a loan to an overseas borrower in order to finance the purchase of goods or services from an exporter carrying on business in the United Kingdom. In order to enable the bank to make that loan, ECGD gives a guarantee to the bank in respect of the borrower's repayment obligations. The exporter is then able to claim disbursements from the loan as and when amounts fall due for payment under the terms of its export contract with the overseas buyer.
  Download the detailed guide (PDF 37 KB)
  
  
• Supplier Credit Financing (SCF) Facility
  Where a buyer requires credit terms of at least two years for an export contract, an SCF Facility allows the exporter to pass the payment risk to its bank in respect of the credit portion. It also allows the exporter to receive cash from the bank upon shipment of the goods or for work done under the contract. ECGD’s support is in the form of a guarantee to the bank, under which ECGD guarantees payment to the bank of the finance it has made available, if the buyer defaults on the credit.
  Download the detailed guide (PDF 43 KB).
  Click here to view list of banks that hold MGAs.
  
  
• Lines of Credit
  An ECGD-supported Line of Credit can provide UK exporters of capital goods with a quick way to access finance made available by a UK bank to an overseas borrower. Such facilities can be set up to enable (i) a variety of overseas buyers to purchase unrelated capital goods or services, or (ii) an individual buyer to purchase a wide range of capital goods or services for a particular project. The loan funds are used to pay exporters once the goods are exported or services are performed. If the borrower fails to repay any part of the loan, ECGD's guarantee to the UK bank means that it still receives payment in full.
  Download the detailed guide (PDF 33 KB)
  

• Project Financing Facility
  Where a UK Exporter is involved in a major project overseas, ECGD may give its support to project financing arrangements under which the banks providing finance rely primarily upon the revenues of the project for repayment. Like a Buyer Credit facility, ECGD's support takes the form of a guarantee to the lending banks in respect of a loan, which they have made to the project company. Amounts are disbursed to the UK exporter from this loan as and when amounts fall due for payment under its contract with the project company.
  Download the detailed guide (PDF 144 KB)
  

RECOURSE

• When ECGD provides a Buyer Credit or SCF Facility to a bank which has financed an export contract, ECGD may wish to have recourse to the exporter (and possibly its parent company where appropriate) for all or part of any claims payment which it has made to a financing bank at a time when the exporter has failed to meet any of the conditions of its contract except when that failure is neither material nor substantial or has been caused by certain specified circumstances outside of the exporter’s control.
  Download the detailed guide (PDF 91.7 KB)

INSURANCE FACILITIES FOR EXPORTERS

• Export Insurance Policy (EXIP)
  The Export Insurance Policy protects an exporter against not receiving payments to which it is contractually entitled under a capital goods contract as a result of the occurrence of specified commercial or political risks.
  Download the detailed guide (PDF 41 KB)
  
  
• Bond Insurance Policy (BIP)
  A Bond Risk Policy provides protection in the event of a bond being called unfairly and for calls made as a result of specified political events, and is provided in respect of an export contract where a Buyer Credit facility, an SCF facility, or an EXIP is being provided for that contract.
  Download the detailed guide (PDF 78.9 KB)
  

OVERSEAS INVESTMENT INSURANCE

• Investment Insurance provides cover in respect of political risks (including expropriation and restrictions on remittance) in respect of certain investments made in developing countries
  Download the detailed guide (PDF 66 KB)

LETTER OF CREDIT GUARANTEE SCHEME

• The Letter of Credit Guarantee Scheme aims to assist UK exporters by boosting the availability of short-term export finance. Under the scheme ECGD will share, with UK banks, the credit risk associated with confirming letters of credit from certain emerging markets, so that these banks will have greater capacity to support British exporters to these countries.
  
  Exporters should approach their banks, not ECGD, to confirm their eligibility for the scheme. The form of the master guarantee agreement between each participating bank and ECGD is set out below.
  
  Download the Letter of Credit Guarantee Scheme Master Guarantee Agreement (PDF 241 KB)
  
  Download the Letter of Credit Guarantee Scheme Application form (PDF 22.8 KB)
  
  
• Please click here to view a list of eligible countries and issuing banks (PDF 91 KB).

More Information

Please see ECGD's contacts for any further information on ECGD’s facilities.

The government encourages companies to adopt the OECD Guidelines for Multinational Enterprises. For more details please see:  ( http://www.berr.gov.uk/nationalcontactpoint)