How it works

A typical sequence of events

EKF can assist your company from the first contact with a buyer abroad to the conclusion of the export transaction and receipt of payment. Discover here the typical sequence of events: what you yourself need to do, how EKF helps your export on its way, and what assistance your bank provides.

Contacting the buyer abroad

What you do
You initiate contact with the buyer abroad and clarify what you are to supply, the size of the order, the delivery specifications and how the buyer is to pay. Payment typically comprises an advance payment, a payment on delivery and a payment after the guarantee period. Contact EKF to find out how we can assist you with financing before you arrange payment, since EKF has to comply with international rules on the size of advance payments and credit periods.

What EKF does
EKF helps you with expertise on financing export transactions and how guarantees protect your company and the bank against losses. EKF can also shed light on conditions in countries and markets around the world. EKF makes sure that the export transaction meets the requirement of promoting economic growth in Denmark.

What the bank does
The bank explains the options available to your company and the buyer for obtaining credit or a loan for the export order.


Determining the financing requirement

What you do
You describe the export transaction for EKF: the size of the order, what goods or services you are exporting and what credit you would like to offer your customer, i.e. the credit conditions, size, term and how it is to be repaid. Contact EKF to ensure that the conditions applying to your export transaction fall within our remit to assist you.

What EKF does
EKF helps you find the right way to protect your company or the bank against loss, so that the financing and the export can be finalised. The guarantees insure, for example, against the foreign buyer being unable or unwilling to pay for the export as agreed.

What the bank does
The bank assists your company to determine the credit requirement for the export transaction. The bank will often extend credit to the foreign buyer so that you get paid straightaway. Alternatively, the bank may offer your company a loan if it is extending credit to the foreign buyer.


Credit assessment of the export transaction

What you do
You can help speed up the application process by obtaining the last three annual financial statements of the foreign buyer and clarifying the export transaction's environmental impacts.

What EKF does
EKF assesses the foreign buyer's creditworthiness, and the country's political situation and creditworthiness. Finally, EKF satisfies itself that the transaction will be completed in a socially and environmentally responsible manner.  If the risk is acceptable, EKF issues a conditional offer to cover the risk. The offer also includes the size of the premium.

What the bank does
The bank uses the undertaking from EKF to make the final offer to the foreign buyer to finance the export transaction.


EKF issues the guarantee

What you do
Your company signs EKF's declaration on non-bribery and transparency.

What EKF does
EKF issues a policy to your company or the bank.

What the bank does
The policy forms part of the financing agreement signed by the bank and the foreign buyer.


The export takes place

What you do
Your company starts work on filling the export order and making the delivery to the foreign buyer.

What the bank does
The bank pays your company for the export transaction. The advance payment, payment on delivery and payment after the guarantee period are set out in the financing agreement. The bank then receives credit repayments from the foreign buyer. The repayment term is normally for 10 years at most and for smaller export transactions it is typically 3 to 5 years.

What EKF does
EKF pays compensation to your company or the bank if something goes wrong.

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