Sell more with
a Buyer Credit
Guarantee
A Buyer Credit Guarantee gives you the opportunity to offer your foreign
customer long-term credit for a specific order.
A Danish or foreign bank provides your customer with credit. We guarantee
the main part of the payments so that the bank is willing to provide credit. It
means that we will pay compensation for the main part of the bank’s loss if,
contrary to expectations, the customer does not pay as agreed.
For example, if your customer is unable or unwilling to pay, if the money
cannot be transferred out of the country, or if war or civil war breaks out in
the country.
What are the advantages What does a Buyer
of a Buyer Credit Guarantee? Credit Guarantee cover?
Financing for your customer You have no financing risks Application
You can help your customer obtain As the exporter, you have no financ- Credit for your customer
credit for placing orders with you. ing risks, as you are not a party to the
With a Buyer Credit Guarantee, your financing. You will also receive your Cover
bank will be happy to give your cus- money as soon as you fulfil the order. Your bank’s loss if your customer
tomer credit. does not pay as agreed
No maximum amount
Use credit as a competitive Buyer Credit Guarantees are subject Guarantee percentage
parameter to no maximum amount and can 95 %
You can use a financing solution therefore be used to cover large,
actively to promote sales. You are million-figure orders. Amount up to
one step ahead of your competitors Unlimited
if you are able to offer your customer
an attractive financing solution. Credit period up to
10 years (For water and renewable
energy projects the credit period is
up to 18 years.)
R13403 · 0519
Requirement
Down payment of at least
15%
Lautrupsgade 11, 2100 DK-CPH Ø | T: +45 35 46 26 00 | [email protected] | ekf.dk
What are the steps in the process?
Clarification Offer Guarantee
Need Offer Acceptance Yes!
You wish to offer your
customer credit but 1 If we are willing to
cover the transaction,
The bank and the
borrower negotiate the
We issue a Buyer
Credit Guarantee. You
you do not wish to we make an offer and loan agreement based get paid on delivery of
provide it yourself. send it to the bank. on our offer. goods. The borrower
repays the credit to
the bank without you
being involved.
Contact
You have a Danish or
foreign bank that is
2 4 5 6
willing to provide credit
but wants additional
security. This we can
provide.
YES!
Credit assessment
The bank sends us an
application for a Buyer
3
Credit Guarantee. We
assess the project and
the borrower.
Three practical questions
How much? What does it require? What can you do?
As the exporter, there is no cost You have to be a Danish exporter. Contact your bank for an immediate
involved for you; however, your application.
customer pays a premium to us. The Your customer must be creditworthy.
premium is calculated on the basis off Contact us for more information on
Your company must help generate Buyer Credit Guarantees.
• your customer’s creditworthiness economic growth in Denmark.
• the political situation in the cus- For credit screening purposes, you
tomer’s country can obtain the annual accounts of
• the credit period. your customer for the last three years.
In addition, the customer pays loan Visit www.ekf.dk for information
interest and costs to the bank. on success stories, requirements
and terms.
