Working Capital Guarantees

Your bank is your contact The Working Capital Scheme is administered by the banks. Consequently, it is the company´s bank that provides advice and guidance and assesses specific applications and other conditions.

What is a working capital guarantee?
A working capital guarantee makes sure that Danish export companies and their sub-suppliers can obtain the necessary working capital financing and guarantees from their banks and ensure continued export of Danish products. The fact that EKF guarantees for the loans makes it easier for the company to obtain credit from the bank. 

Danish export companies can apply for working capital guarantees until 31 December 2010. The duration of a working capital guarantee is maximum three years.

All export companies can apply
The working capital scheme can be used by companies who are either exporters or sub-suppliers to an export company. Working capital guarantees can only be issued in connection with direct export or sub-supplies. Due to the EU state aid rules, the so-called primary sector which includes the agricultural sector and foodstuff is not covered by the scheme. 

EKF guarantees up to 80 pct. of the loan
EKF guarantees up to 80 pct. of the loan for working capital while the bank covers 20 pct. of the risk.

The price depends on the risk
The premiums for SMVs will follow the so-called safe harbour premiums defined by EU. The premium for large companies will be fixed by EKF on a case-by-case basis – based on the market conditions at a given moment.

Contact our customer advisors
For more information on Working Capital Guarantees, please contact our customer advisors.