Export credit agencies make it easier for exporters and their buyers to borrow by guaranteeing or insuring a large share of the credit risk. UK Export Finance guarantees up to 80% of lender risk and insures up to 95% of contract value; Germany's Hermes cover and the US EXIM working capital guarantee work in similar ways. Officially supported terms are disciplined by the OECD Arrangement, which requires at least a 15% down payment and generally caps repayment at 15 years.
What the agencies offer
UK Export Finance is a ministerial department and the UK's export credit agency. Its Export Development Guarantee covers up to 80% of a lender's risk on larger facilities, the Bond Support Scheme gives banks an 80% guarantee on contract bonds, and the Export Insurance Policy covers up to 95% of contract value. Several products require exports of at least 20% of turnover in one of the last three years, or 5% in each.
In Germany, the Federal Republic carries most of the default risk under Hermes cover, decided by an Interministerial Committee and run by Euler Hermes AG; the exporter pays a risk-based premium. In the US, EXIM's working capital loan guarantee covers 90% of export receivables and 75% of export inventory for exporters at least one year old with at least 50% US content.12345678
The OECD rules behind the terms
The OECD Arrangement is a Gentlemen's Agreement among Australia, Canada, the EU, Japan, Korea, New Zealand, Norway, Switzerland, Türkiye, the UK and the US. It requires a down payment of at least 15% of contract value, generally caps repayment at 15 years and the useful life of the goods, and requires participants to charge at least a minimum premium rate. India, Saudi Arabia, the UAE and Singapore are not participants, so their agencies' terms are not bound by it.910
| Market | Agency or scheme | Cover | Source |
|---|---|---|---|
| United Kingdom | UKEF Export Development Guarantee | Up to 80% of lender risk | UKEF brochure |
| United Kingdom | UKEF Export Insurance Policy | Up to 95% of contract value | UKEF brochure |
| Germany | Federal export credit guarantees (Hermes) | Major portion of default risk; risk-based premium | BMWK |
| United States (federal) | EXIM working capital loan guarantee | 90% of receivables, 75% of inventory | EXIM |
| OECD participants | Arrangement on Officially Supported Export Credits | 15% minimum down payment; 15-year general cap | OECD Arrangement 2026 |
Decisions to make
- Does the exporter meet the agency's eligibility tests, such as UKEF's export-share test or EXIM's US content rule?58These decide whether the product is available at all.
- Is support needed for the exporter's working capital or for the buyer's financing?348Different products apply, with different cover percentages.
- Can the buyer pay at least 15% up front?10OECD participants' agencies require it for officially supported credits.
- Is the export climate-sensitive?7Germany has said it will not cover exports with a strong negative climate effect.
Documents usually needed
- Export contract with payment terms and down payment
- Financial statements showing export share of turnover for recent years
- Content or origin analysis of goods and services
- Lender's facility documents and the agency's guarantee or policy
- Environmental and social information for larger projects
Common mistakes
- Approaching the agency after the contract terms are fixed, leaving no room for the 15% down payment
- Assuming all agencies apply the same content or eligibility rules
- Treating the guarantee as covering 100% of the lender's risk
- Ignoring climate policies that exclude some sectors
Questions businesses ask
Does UKEF lend directly or only guarantee banks?
Most UKEF products shown are guarantees and insurance, such as the 80% Export Development Guarantee and the 95% Export Insurance Policy; direct lending terms were not confirmed.34
Are Gulf and Indian export credit agencies bound by the OECD Arrangement?
No. Its participants are Australia, Canada, the EU, Japan, Korea, New Zealand, Norway, Switzerland, Türkiye, the UK and the US.9
What this guide does not yet confirm
These points need checking with a qualified local professional before you rely on them.
- Export credit agencies of India (ECGC, India Exim Bank), Saudi Arabia (Saudi EXIM Bank), the UAE (Etihad Credit Insurance), Singapore and France (Bpifrance Assurance Export) were not researched.
- UKEF direct lending terms and UK content rules, and EXIM buyer-financing terms, could not be confirmed.
- Development finance institutions (for example IFC or national DFIs) were not covered.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
UK Export Finance is a ministerial department whose stated aim is that no viable UK export fails for lack of finance or insurance, and it states that it works at no net cost to the taxpayer. UK. Relevant when comparing state-backed guarantees with commercial cover, since UKEF charges premiums.
UK Export Finance describes itself as the UK's export credit agency, established in 1919, and states that it can help exporters sell to over 200 countries. UK. Finance can be offered in over 60 local currencies, with repayment terms of up to 15 years, or up to 22 years in some sectors.
UKEF's Export Development Guarantee covers up to 80% of a lender's risk on facilities generally above GBP 25 million, with repayment periods of up to five years, or ten years for clean growth. UK exporters; smaller facilities up to GBP 25 million use the General Export Facility, for which lenders have delegated authority up to GBP 5 million per exporter.
UKEF's Bond Support Scheme gives the exporter's bank an 80% guarantee on contract bonds, and its Export Insurance Policy covers up to 95% of a contract's value against non-payment. UK exporters. The Export Working Capital Scheme also covers up to 80% of the credit risk on contract-linked working capital facilities.
For UKEF's General Export Facility, Supply Chain Discount Guarantee and Export Development Guarantee, a company needs export sales of at least 20% of turnover in one of the last three financial years, or at least 5% in each of them. UK exporters. This is an export-share test; the brochure does not state a UK content percentage.
Under Germany's federal export credit guarantees (Hermes cover), the Federal Republic assumes a major portion of the risk of payment default; an Interministerial Committee decides by consensus and Euler Hermes AG implements the scheme on the government's behalf. Federal. The committee is led by the economics ministry, with the finance ministry, Federal Foreign Office and development ministry.
Companies receiving German federal export credit cover pay a premium commensurate with the risk, and the government has stated it will no longer cover exports with a strong negative effect on the climate. Federal. In 2022 the scheme covered exports worth EUR 20.2 billion.
EXIM's working capital loan guarantee backs a private lender's loan by guaranteeing principal and interest on 90% of export-related accounts receivable and 75% of export-related inventory. Federal. The exporter must be at least one year old and its goods must have at least 50% US content and be made in and exported from the United States.
The OECD Arrangement is a Gentlemen's Agreement, not an OECD Act, whose participants are Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland, Türkiye, the United Kingdom and the United States, and they must charge at least the applicable minimum premium rate for credit risk. Articles 2, 3 and 21. The EU participates for its Member States, including Germany and France. India, Saudi Arabia, the UAE and Singapore are not participants.
The 2026 Arrangement text was read from the copy published by OeKB, Austria's official export credit agency; the OECD site could not yet be checked.
Under the OECD Arrangement on Officially Supported Export Credits, the buyer must make a down payment of at least 15% of the export contract value, and the repayment term is generally capped at 15 years and at the useful life of the goods. Officially supported export credits of Arrangement participants. Articles 11(a), 12(a) and 12(b). Local costs may be supported up to 40% (Category I countries) or 50% (Category II) of the contract value.
The 2026 Arrangement text was read from the copy published by OeKB, Austria's official export credit agency; the OECD site could not yet be checked.
Questions on this topic
10 statements on development finance and export credit
