Also in the news...
How to successfully expand your business and set up in the UK
Tell us about your business and we'll give you the official information and data you need, in one place
Foreign Office travel advice updates
Latest travel information for British nationals affected by the situation in the Middle East.
Check if you need a UK visa
You may need a visa to come to the UK to visit, study or work.
Apply to use simplified declarations for imports you entered in your records without authorisation
Choose how you’ll make supplementary declarations for goods that you entered into your own records without authorisation.
UKEF backs Leicester sustainable packaging firm in Australian expansion
UK Export Finance announces support for a UK luxury sustainable packaging company to expand into new foreign markets.
Bond Support Scheme
Find out about the Bond Support Scheme - how it works, its benefits and how to apply.
Our Bond Support Scheme provides partial guarantees to banks in support of UK exports to help banks meet demand for contract bonds.
When an exporter wins an export contract, they may be required to provide a contract bond. One solution could be for the exporter’s bank to issue the required bonds to the overseas customer on the exporter’s behalf.
However, in order to provide this bond, the bank is likely to require collateral (in the form of a cash deposit) to secure the bond, which could put pressure on the exporter’s working capital or cash flow. We can provide a guarantee of up to 80% of the value of the bond. This allows banks to release the cash needed to secure the bond for the exporter to use as working capital.
There is no maximum value for each bond and no maximum or minimum term for a guarantee.
How it works
Benefits
Under the scheme banks:
- can issue a bond (or indemnify the issue of) a bond without incurring the full risk
- may increase the amount of working capital available to the exporter by relieving pressure on the exporter due to the requirement to provide cash deposits as collateral to secure the bond
- receive a guarantee from UKEF to cover the percentage of the amount due to it if the exporter fails to reimburse the bank following a call being made on the bond by the buyer
- may, for the duration of our guarantee, be able to increase its risk appetite for the exporter
Eligibility criteria
To be eligible for support under our Bond Support Scheme, the transaction must satisfy UKEF’s eligibility criteria, which includes the requirements that:
- the exporter must be carrying on business in the UK
- the exporter must have entered, or be intending to enter, into a contract for the supply of goods and/or services with a company or other organisation that carries on business outside the UK