Direct Lending Facility
Source: gov.uk (2025-07-25)

Find out about our Direct Lending Facility: its benefits, eligibility criteria and how to apply.

Under the Direct Lending Facility, UK Export Finance (UKEF) provides loans within an overall limit of £13 billion to overseas buyers, allowing them to finance the purchase of capital goods and/or services from UK exporters. Of that limit, £3 billion has been allocated to support the defence sector.

The loans we provide for each transaction can be made in up to 8 currencies, with a value limit of £200 million (although more flexibility may be offered in limited circumstances).

The funding provided is at a fixed rate of interest, based on the applicable Commercial Interest Reference Rate (CIRR) set by the OECD, or the cost of UK Government funds (National Loans Fund rates) if higher.

Benefits

The benefits of Direct Lending include:
- the exporter is paid as though it has a cash contract, subject to the terms and conditions of the loan agreement and that loan continuing to be made available to the borrower.
- the buyer or borrower has time to pay over a number of years and can borrow at a competitive fixed rate of interest
Eligibility criteria

The transaction must satisfy UKEF’s eligibility criteria, which includes the requirement that:
- the contract must demonstrate how it is conducive to supporting or developing exports from the UK
All transactions supported by UKEF must satisfy:
- our foreign content policy (https://www.gov.uk/government/publications/ukefs-approach-to-foreign-content)
- our anti-bribery and corruption (https://www.gov.uk/guidance/uk-export-finance-financial-crime-compliance) and environmental, social and human rights due diligence processes (https://www.gov.uk/guidance/ukef-environmental-social-and-human-rights-risk-management)
The transaction may not be supported if there are sanctions imposed on the country of the overseas buyer or borrower.

There is no fixed lower limit, although for loans below £5 million (or the foreign currency equivalent), we may offer alternative export finance options.

In most cases, direct loans will not exceed £200 million. However, we may apply a more flexible approach depending on:
- the remaining resources of the facility at the time a high value application is received
- the strategic importance (to the national interest) of the proposed transaction
Check our cover indicators (https://www.gov.uk/guidance/country-cover-policy-and-indicators) to find out what cover is available for the country or territory you want to do business in.

How to apply

To find out more about our Direct Lending Facility or to discuss eligibility for our support, contact our customer services team.

Contact xxx@xxx.xx (mailto:xxx@xxx.xx).

Application form
- Direct Lending Facility application form (https://assets.publishing.service.gov.uk/media/68825446901d5f8d4712061c/DL_Application_Form_.pdf) (PDF, 546 KB, 35 pages)
More information
- A commitment fee is charged at a market rate on the undrawn portion of Direct Lending facilities, in line with all ECAs that participate in the OECD Arrangement (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fguidance%2Fexport-finance-and-insurance-international-agreements&data=05%7C01%7Ccontent%40ukexportfinance.gov.uk%7C55b21a8d7a764dc097a008db73d5ccb5%7C8084138e9400409ea6da46b5281e0b0a%7C0%7C0%7C638231134325642886%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=k%2BgXVHGOg3NWojdBwU%2FiRabexaKjsyjnizt3vVHlLhI%3D&reserved=0).
- Read our guide for applicants on business processes and factors (https://www.gov.uk/government/publications/processes-and-factors-in-uk-export-finance-consideration-of-applicants), to find out how we make decisions on applications
- Read our position on Financial Crime Compliance (https://www.gov.uk/guidance/uk-export-finance-financial-crime-compliance)