​Foreign buyers often require the Danish supplier to provide surety in the form of an on- demand guarantee  that the supplier will honour its bid (bid bond); the buyer's advance payment for the order (advance payment bond) and for the supplier's fulfilment of the order (performance bond). Under an on-demand guarantee, the foreign buyer can claim payment from the supplier's cash deposit (the bond) without presenting other documents as proof of his claim.

With a bond guarantee, EKF covers the risk of unwarranted calling of the bond by the buyer, in other words, without the buyer making a valid claim for repayment from your company due to defects or default in performance. EKF also insures you against the risk of warranted calling of the bond by the buyer due to political circumstances such as if:

• War/civil war (external armed conflict and domestic political violence) breaks out in the country.

• An embargo is imposed on exports to the country

• The public authorities of the country intervene against your export business