UK Export Finance (UKEF) Products for SMEs: Export Insurance, General Export Facility, and More

What UK Export Finance Does and Why It Exists#

UK Export Finance (UKEF) is the UK government's export credit agency, operating since 1919 and one of the oldest in the world. Its mandate is to ensure that no viable UK export fails for lack of finance or insurance from the private sector. UKEF does not compete with private banks and insurers — it operates where the private market has gaps: high-risk markets, long-term buyer credit, large single-buyer concentrations that commercial insurers will not underwrite, and innovative financing structures for project exports. In recent years, UKEF has expanded its direct lending capability and its willingness to support SMEs, not just major defence and infrastructure contractors. The agency backed over £8 billion of UK export value in 2022-23, supporting businesses of all sizes.

Export Insurance Policy: Covering Your Export Receivables#

The UKEF Export Insurance Policy (EXIP) covers UK exporters against the risk of non-payment by overseas buyers due to commercial risk (buyer insolvency or default) or political risk (war, sanctions, import bans, currency transfer restrictions). It is broadly equivalent to private trade credit insurance but can cover markets and risks that private insurers decline. Premiums are calculated individually based on the buyer country, buyer creditworthiness, and transaction structure. The minimum transaction size is typically £20,000. For exporters selling into markets in sub-Saharan Africa, parts of the Middle East, or countries under political uncertainty, EXIP can provide cover where Allianz Trade, Atradius, and Coface will not. It can also cover single-contract exports rather than requiring a whole-turnover commitment.

General Export Facility: Working Capital for Exporters#

The General Export Facility (GEF) is a UKEF guarantee that enables banks to provide exporters with working capital financing — typically a revolving credit facility or bond facility — that they might otherwise be unwilling to extend. UKEF guarantees 80% of the facility to the lender, significantly reducing the bank's credit risk and making it easier for SMEs to access finance tied to their export contracts. The GEF is designed for businesses that have export contracts or a track record of exporting and need working capital to fulfil orders: purchasing raw materials, funding production, bridging the gap between delivery and payment. It can support facilities from £25,000 upwards, making it accessible to smaller exporters who previously fell below the thresholds for government-backed finance.

Export Development Guarantee: Growth Finance for Exporters#

The Export Development Guarantee (EDG) is designed for larger exporters looking to invest in growth: building new capacity, acquiring equipment, developing new markets, or funding working capital at scale. UKEF guarantees up to 80% of a bank loan, enabling the bank to lend on more favourable terms than it could justify on the basis of the business's credit alone. EDGs have been used for loans from £5 million upwards, so they are primarily relevant to mid-market and larger businesses rather than micro SMEs. However, for growing exporters that have outgrown standard bank lending but not yet reached the scale for bond markets, the EDG can provide a critical bridge.

How to Access UKEF Products as an SME#

UKEF works through accredited lenders — the major UK clearing banks (Barclays, HSBC, Lloyds, NatWest, Santander) and a growing network of specialist trade finance providers. To access a General Export Facility, you approach your existing bank and ask them to explore a UKEF-guaranteed facility; the bank manages the UKEF application on your behalf. For the Export Insurance Policy, you can apply directly to UKEF or through a licensed export insurance broker. UKEF also has a direct origination team that proactively identifies exporters who might benefit from their products — including through trade bodies, chambers of commerce, and the Department for Business and Trade. AskBiz tracks your export receivables and cash flow position, giving you the data to support a UKEF or bank financing conversation with evidence-backed numbers.

• UK Export Finance (UKEF) is the UK government's export credit agency, providing financial products to help UK businesses export where the private market does not offer adequate support.
• For SME exporters, the most relevant products are the Export Insurance Policy, the General Export Facility, and the Export Development Guarantee.