UKEF provides government-backed guarantees that enable UK banks to offer export financing SMEs cannot access commercially. Here is how the General Export Facility works in 2026.
UK Export Finance (UKEF) is the UK government's export credit agency — one of the oldest in the world, established in 1919. It does not lend money directly. Instead, it provides government-backed guarantees to banks and lenders, reducing their risk and enabling them to offer export-related financing that businesses could not otherwise access on commercial terms. For UK SMEs that export or plan to export, understanding how UKEF works and which products apply to your situation is increasingly important — particularly as traditional bank appetite for unsecured trade finance has tightened.
A UKEF guarantee is a government-backed assurance given to a bank or lender that covers a significant portion of the risk on an export-related loan or facility — typically between 80% and 85% of the transaction value. Because the government is absorbing most of the default risk, lenders are willing to offer financing they would otherwise decline, at terms they could not otherwise justify commercially.
UKEF works with over 100 private credit insurers and lenders, ranging from high street banks (Barclays, HSBC, Lloyds, NatWest) to specialist trade finance providers. In 2025, White Oak UK was added as an approved General Export Facility lender, expanding access for smaller businesses beyond traditional banking relationships.
The General Export Facility is UKEF's primary product for small and medium-sized UK exporters. It is the most relevant UKEF product for most SMEs because it is not tied to a specific export contract — it provides flexible working capital support across your entire export business.
What the GEF covers: UKEF provides a guarantee to your bank, enabling access to a range of trade finance facilities including trade loans, letters of credit, bonds, and guarantees. The facility is product-agnostic — the same guarantee can back multiple working capital products under a single facility agreement.
Maximum facility size: Up to £25 million through the GEF. For larger facilities above £25 million, the Export Development Guarantee (EDG) is more appropriate.
Key advantage — not contract specific: Unlike most export finance products that require a specific export contract to be in place, the GEF can be used across multiple contracts and domestically as well as internationally. This significantly reduces the administrative burden — you do not need to submit separate applications for each contract.
Automatic approval for qualifying applications: Participating banks can automatically provide the UKEF guarantee for applications that meet certain criteria, without requiring manual UKEF review. This means faster access to facilities for businesses that clearly meet the eligibility requirements.
Eligibility for the GEF: To qualify, your business must be UK-based, manufacturing goods or delivering services that would qualify for a UK Certificate of Origin, with UK premises and employees, paying UK Corporation Tax, and meeting one of the following export turnover tests:
Businesses that do not yet meet these thresholds but have a credible plan to develop significant export activity within five years may also qualify — UKEF has discretion to support businesses demonstrating genuine export growth potential.
The Export Development Guarantee is designed for established exporters requiring larger facilities — typically above £25 million, with the average EDG facility running between £100 million and £500 million. The EDG supports the same broad export development purpose as the GEF but at a scale suited to larger businesses making significant international expansion investments.
UKEF can provide partial guarantees covering up to 80% of the lender's risk under the EDG, with maximum repayment periods of up to five years. The EDG does not require a specific export contract — it supports general business investment in export capability, much like the GEF but at significantly larger scale.
For most SMEs, the GEF is the relevant product. The EDG is referenced here because it is a common search query — businesses that outgrow the GEF or are already operating at scale should speak directly with UKEF or their bank about EDG eligibility.
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. This is a common pain point for SMEs working on large international contracts that require performance or advance payment bonds.
Export Insurance Policy: Protects against the risk of non-payment by overseas buyers due to political or commercial risks. Particularly relevant for exporters selling to emerging markets or on open account terms where buyer credit risk is a concern.
Buyer Credit Facility: UKEF guarantees a loan made by a UK bank to an overseas buyer, enabling them to purchase UK goods and services. Covers up to 85% of the contract value and supports transactions in over 60 countries. Relevant when your overseas buyer needs financing to purchase from you — particularly for high-value capital goods or services contracts.
UKEF does not accept direct applications from businesses. All UKEF-backed financing is accessed through approved lenders — banks and specialist finance providers that have been authorised to offer UKEF-guaranteed products. The process:
UKEF ended all future support for international fossil fuel projects following its Paris Agreement alignment commitment — one of the first export credit agencies globally to do so. Businesses in fossil fuel extraction, processing, or infrastructure should not expect UKEF backing for international projects. Additionally, UKEF does not operate in the following countries: Afghanistan, Burundi, Kosovo, Libya, North Korea, Palestinian Authority, Somalia, South Sudan, Sudan, Syria, Yemen, and Zimbabwe.
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Start your free 14-day trial →Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. UKEF eligibility criteria and product terms change frequently. Always verify current requirements directly at ukexportfinance.gov.uk or through an approved UKEF lender before applying.
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