Read end-to-end by a FundingAtlas editor against the official source.
Quick answer
The Direct Lending Facility allows UK Export Finance to lend directly to overseas buyers so they can pay UK exporters in cash for capital goods and services. It is used where commercial bank lending to the buyer is unavailable on competitive terms. Exporters engage UKEF early in the contracting process to assess the buyer, country and project.
Funding amount
Varies
Region
United Kingdom
Stage
Growth
Provider
UK Export Finance
Frequently asked questions
- Who is Direct Lending Facility for?
- UK exporters with overseas buyers requiring medium- to long-term finance, subject to UKEF country cover, project assessment and OECD pricing rules.
- How much funding is available through Direct Lending Facility?
- Funding is variable by call and project scope. Exact amounts depend on project scope, eligibility, and the live call. Always confirm current figures on the official provider page before applying.
- How long does the Direct Lending Facility application take?
- Timelines vary by call. Plan for several weeks between starting the application and a funding decision, and longer where panel review, due diligence, or subsidy-control checks apply.
- What are the main alternatives to Direct Lending Facility?
- Consider other UK Export Finance programmes, options on the Scale-Up Funding Pathway, and adjacent routes discussed in our Growth Guarantee Scheme vs Start Up Loans comparison.
- What happens after a successful Direct Lending Facility application?
- Successful applicants sign a funding agreement, complete onboarding, and report against agreed milestones. Use the award to build the evidence base for follow-on funding once the project delivers measurable outcomes.
- What are the most common mistakes when applying for Direct Lending Facility?
- Weak fit with the stated objectives, vague impact metrics, missing match funding, and applying before the business is operationally ready are the most common reasons applications stall or are rejected.
Usually too early when
Advisor signal
Apply before you can clearly articulate the project scope, evidence of fit with UK Export Finance's priorities, and a credible delivery plan. Businesses earlier than the growth stage typically struggle to evidence the operational thresholds assessors look for.
Eligibility
UK exporters with overseas buyers requiring medium- to long-term finance, subject to UKEF country cover, project assessment and OECD pricing rules.
Common reasons applications fail
Reasons applications fail or stall: • Weak fit with the stated objectives of the scheme. • Vague impact claims without named metrics, baselines or timing. • Match funding not secured at the point of application. • Project plan that reads like business-as-usual rather than additional, new activity. • Insufficient evidence the team has delivered comparable work before. • Late engagement — applying close to deadline without internal sign-off.
What improves your odds
Strong alignment with UK Export Finance's published priorities. A specific, measurable project with named deliverables and timelines. Evidence the team can deliver — relevant prior projects, named technical leads, and secured (not hoped-for) match funding where required. Clear quantified impact: jobs, productivity, exports, emissions reduction or commercial outcomes appropriate to the scheme.
Typical successful applicant
A UK-based organisation that already meets the eligibility criteria for Direct Lending Facility on paper, has prior delivery experience relevant to UK Export Finance, and can evidence the stated impact within the funding window.
Common misconceptions
That Direct Lending Facility is a quick or guaranteed source of capital. It is not — assessment is competitive and most applicants are unsuccessful. That a strong application can be drafted in days; in practice, competitive submissions take weeks of preparation, evidence gathering, and internal sign-off.
What comes next
On a successful award: deliver against the agreed milestones, build the evidence base for follow-on funding (commercial pilots, larger grants, debt or equity), and document outcomes that strengthen the next application. On rejection: request feedback, address the specific weaknesses, and consider an adjacent scheme on the Scale-Up Funding Pathway before re-applying.
Funding context
Direct Lending Facility sits within UK Export Finance's wider funding remit. Treat it as one option on the Scale-Up Funding Pathway; the right route depends on stage, project type and what comes next commercially. Use it alongside, not instead of, complementary support.
Related routes
- Scottish Enterprise Account Management
- Export Working Capital Scheme
- UKEF General Export Facility
- DBT International Trade Advisers
- Scale-Up Funding Pathway
- R&D Tax & Reliefs Pathway
- Growth Guarantee Scheme vs Start Up Loans
- Regional Funding vs National Funding
- What comes after a Start Up Loan?
- How to fund deep tech
Industries
Objectives
Regions