Export Finance UK: Fund Overseas Orders
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Export finance advances working capital against confirmed overseas orders or invoices, typically 70 to 90% of value, so you fund production and shipping before your buyer pays 90 to 360 days later. It spans export invoice finance, letter of credit confirmation, credit insurance and UKEF-backed guarantees. We are a broker, not a lender: we place your case with lenders who access these structures.
Export finance answers a single question: how do you fund an order and offer competitive terms to an overseas buyer without your own cash flow taking the strain? You build or buy the goods, you ship them, then you wait, often 90 to 360 days, for a buyer on another continent to pay. Export finance closes that gap and manages the risks that come with selling across borders.
It is rarely one product. The core is usually an advance against confirmed export orders or invoices, typically 70 to 90% of value released on day one, with the balance clearing when your buyer settles. Around that sit several other tools. Export invoice finance funds your overseas receivables the way domestic invoice finance funds a UK sales ledger. Letter of credit confirmation lets a UK bank add its own guarantee to a letter of credit issued by your buyer's bank abroad, so you rely on a bank you know rather than one you do not. Credit insurance covers you if the buyer defaults, is sanctioned, or a government blocks the payment transfer, and on many facilities it is a condition rather than an optional extra.
UK Export Finance, the government's export credit agency, sits behind a lot of this. Its guarantees, such as the General Export Facility and buyer credit guarantees, can cover a large share of the risk a commercial lender would otherwise decline, which is often what makes a facility possible for buyers in higher-risk markets. UKEF sets no minimum deal size, so it is not only for large exporters, but the lender has to be an accredited UKEF partner and plenty are not. We are a broker, not UKEF-accredited ourselves, and where your own bank cannot access these schemes we place the deal with a lender that can.
Two honest caveats. Currency risk sits with you unless you hedge it separately, usually with a forward contract through your bank or an FX specialist, not the export lender. And country risk affects both the terms and the credit insurance premium, so a buyer in Germany is treated very differently from one in a fragile market. We cannot promise you a rate or an approval; the lender decides once it has seen your order book, your buyer and your trading figures.
Key Benefits
- An advance of 70 to 90% of invoice value releases cash on day one instead of waiting 90 to 360 days for an overseas buyer to pay, which is the exact gap that stalls otherwise profitable exporters
- Letter of credit confirmation lets a UK bank guarantee a foreign bank's letter of credit, so you take payment risk on an institution you know rather than one on the other side of the world
- Credit insurance protects your margin if the buyer defaults, is sanctioned, or a government blocks the transfer, turning an uncertain overseas sale into a fundable one
- UKEF-backed guarantees can unlock facilities a commercial lender would decline on its own appetite, particularly for buyers in higher-risk markets, with no minimum transaction size
- Service exporters such as consultancies and engineering firms qualify alongside goods exporters, funding working capital while an overseas client sits on a long payment schedule
Frequently Asked Questions
What is UKEF and does it cost anything to use?
UK Export Finance is the government's export credit agency. It does not usually lend to you directly; it guarantees your lender against a share of buyer default risk, which reduces the lender's exposure and can improve the terms you are offered. Exploring UKEF support costs you nothing as the exporter. The practical constraint is that your lender has to be an accredited UKEF partner. We are a broker, not UKEF-accredited, so where yours is not we look at lenders that are.
Do I need to be a manufacturer to use export finance?
No. Trading companies, distributors and service exporters all qualify. UKEF support covers both goods and services exported from the UK, so a consultancy or engineering firm billing an overseas client on 180-day terms can access the same working capital structure as a manufacturer shipping containers. Tell us what you export and to where, and we will match it to lenders with appetite for that trade.
How does export finance handle currency risk?
Export finance and currency risk are two separate problems. The facility funds your working capital; it does not remove exchange-rate exposure. If you invoice in dollars or euros while your costs are in sterling, the standard tool is a forward contract that locks in a rate today for a payment arriving in three or six months. That sits with your bank or an FX specialist, not the export finance lender. We will flag the exposure, but the hedging decision is a treasury call for you.
What is letter of credit confirmation and when do I need it?
Confirmation is when a UK bank adds its own guarantee to a letter of credit that your buyer's bank abroad has issued. Without it, you are relying on a foreign bank to honour the credit; with it, a bank you know stands behind the payment. It is worth paying for when the issuing bank or its country carries real risk. Whether confirmation is available and what it costs depends on the issuing bank and the market, and the lender decides that case by case.
What does a lender need to approve an export finance facility?
At minimum the export contract or confirmed order, proforma invoices, the agreed Incoterms, and credit information on the overseas buyer. For UKEF involvement the buyer's country risk rating matters, because it affects both the guarantee and the credit insurance premium. A new facility will also need your recent accounts and management figures. We will tell you upfront whether your specific buyer and country are likely to be supported before you spend time assembling the paperwork.
Related Funding Options
Export Finance for UK Manufacturers
Export finance for UK manufacturing businesses: fund production before the buyer pays, protect against overseas default, and access UKEF guarantees. Talk to a broker who places these deals.
Export Finance for International Trade Businesses
Export finance for UK international trade businesses: working capital to fulfil orders, credit insurance against buyer default, and UKEF-backed facilities. We place these deals.
Export Finance for Agricultural Exporters
Export finance for UK agricultural businesses shipping grain, livestock, food or drink overseas. We place deals from £25k to £2M, per shipment, and access UKEF guarantees where they apply.
Trade Finance UK: Letters of Credit & PO Finance
Letters of credit, supplier finance and purchase-order funding for UK limited companies. We place trade finance with specialist trade desks, from £25k.
Invoice Finance UK: Fund Your Sales Ledger, Not Your Property
Invoice finance advances up to 90% of an unpaid invoice, often within a day of raising it. We place factoring & discounting facilities for UK limited companies across most sectors, with no property charge required.
Business finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.