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L/C guarantee

​With an L/C (letter of credit) guarantee from EKF your company will be able to arrange for your bank to participate in payments by letter of credit in countries and in markets where it would otherwise be unwilling to accept the risk. The L/C guarantee indemnifies your bank against the risk of loss when the credit period is up to 24 months.

What is L/C guarantee?

​A letter of credit is a commonly used means of payment in international trade as the rules on L/Cs are recognised by banks worldwide. The L/C payment is transacted between banks. This means your foreign buyer pays his bank, and you receive the money for the order from your bank.

When a Danish bank confirms a letter of credit to a foreign bank, the Danish bank bears the risk that the foreign bank will default on payment, provided the conditions of the L/C are met. The Danish bank can protect itself against loss with an L/C guarantee from EKF. If the bank receives no payment from abroad, EKF pays compensation.
EKF
Dahlerups Pakhus
Langelinie Allé 17
2100 Copenhagen
Denmark
T: +45 35 46 61 00
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