GovWire

Guidance: Bills and Notes Guarantee

Uk Export Finance

November 16
21:00 2022

The Bills and Notes Guarantee (BNG) covers payments due under bills of exchange, or promissory notes, purchased by a financial institution from a UK supplier. The supplier will have received them in payment for capital goods, services and/or intangibles supplied to an overseas buyer. This is typically relevant for contracts between 0.5 million to 30 million.

Benefits

The benefits of our Bills and Notes Guarantee include:

  • the supplier is paid as soon as the goods have been shipped and/or services performed
  • the buyer or borrower has time to pay over a number of years at fixed rates
  • the financial institution receives a guarantee from us for the amounts due under the bills of exchange or promissory notes

Eligibility criteria

The transaction must satisfy UKEFs eligibility criteria, which includes the requirements that:

  • the supplier must be carrying on business in the UK
  • the financial institution must be acceptable to us

All transactions supported by UKEF must satisfy:

The transaction may not be supported if there are sanctions imposed on the country of the buyer or borrower.The maximum amount that can be made available under the facility is 95% of the contract value. A minimum of 5% of the contract value must be paid directly to the supplier by the buyer before the facility starts to be repaid.

The period for payment under the facility is typically 2 to 5 years. It can be shorter or longer depending on the sector and transaction requirements.

Check our country cover indicators to find out what cover is available for the country or territory you want to do business in.

Cost

The fee payable for our cover is determined on a case-by-case basis.

How to apply

UKEF works with a range of financial institutions to deliver this support. To find out more about a Bills and Notes Guarantee or to discuss eligibility for our support, contact our customer services team.

Contact customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.

Our application forms are also available if youre ready to make an application.

Application Forms and Product Documentation

Check our country cover position, and make an application.

More information

Additional note

In accordance with the OECD Arrangement on Officially Supported Export Credits, the maximum amount that can be made available under the facility is normally 85% of the export contract value. However, for a temporary period this has been increased to 95% of the contract value for some transactions for sovereign and public borrowers with a Ministry of Finance or Central Bank guarantee.

A minimum of 5% of the contract value must be paid directly to the supplier by the buyer before the facility starts to be repaid. Transactions may benefit from the temporary changes provided that applications are received between 5 November 2021 and 4 November 2023, and the date of the final commitment is within 18 months of the end of the validity period, ie by 4 May 2025.

The temporary change is applicable for exports to all countries except High Income OECD countries. It does not apply to transactions following the Aircraft Sector Understanding (ASU) or Ship Sector Understanding (SSU).

Published 16 November 2022

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