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SME guarantee successful in Lithuania

With help from EKF and Jyske Bank the company Dal-Bo from Vejle has shipped a wide range of agricultural machinery to a new agent in Lithuania without worrying about the payment, a solution which meant sales and additional sales of the Dal-Bo machinery.
Dal-Bo’s agent for agricultural machinery in Lithuania obtained a two-year credit.
How much
DKK 1.1 million
EKF's role
EKF provides a guarantee to Dal-Bo’s bank covering 100 per cent of the payments from the agent in Lithuania.
EKF product
SME Guarantee
  • Quote

    EKF’s case handling was so fast that we managed to ship our agricultural machinery to an important exhibition in Lithuania. Several agricultural machines were sold at the exhibition.

    Hans-Otto Wildfang, Export Sales Director of Dal-Bo A/S
    ​Dal-Bo A/S at Randbøl near Vejle is a producer of agricultural machinery who was going to supply machinery to an agent in Lithuania as part of the company´s efforts to expand and export more machinery.

    “Our relatively new agent was going to attend a local exhibition for agricultural machinery and wanted to participate in the exhibition with a wide range of our machinery”, says Hans-Otto Wildfang, Export Sales Director of Dal-Bo.

    “Our agent made it clear to us that the exhibition provided good sales opportunities. But he lacked funds to purchase the machinery and asked for an extended credit”.

    Dal-Bo, however, was not able to offer a longer credit term of payment than the usual 90 days and was furthermore hesitant about the risk of delivering agricultural machinery worth a total of more than DKK one million to a relatively new business partner.
  • ​​Dal-Bo A/S contacted their bank, Jyske Bank, about the possibilities of obtaining financing for the export of agricultural machinery.
    “We proposed EKF´s SME guarantee because it offers advantages to all parties. The foreign buyer obtains a long-term credit from us at a lower interest rate compared to a bank in Lithuania, Dal-Bo obtains money from us once the goods are delivered while we obtain a financing solution without risk,” says Trine Klarsø, Consultant at Jyske Bank.
    ​In this particular case, EKF´s SME guarantee offers the agent in Lithuania a two-year credit  period and a 100 per cent coverage of the loss, if Jyske Bank does not receive the payments from abroad as agreed.
    “The favourable terms of the SME guarantee can in fact prompt foreign agents to purchase more from Danish suppliers than they would have done otherwise”, Trine Klarsø adds.
  • ​On behalf of Dal-Bo, Jyske Bank applied to EKF for an SME guarantee worth approximately DKK 1.1 million to cover the delivery to Lithuania. EKF processed the application and issued the guarantee the next day.

    “EKF´s case handling was so fast that we managed to ship our agricultural machinery to the important exhibition in Lithuania. Several of the machines were sold on the exhibition and the dealer ordered new machines from us shortly after”, says Hans-Otto Wildfang, Export Sales Director of Dal-Bo.
    ​Dal-Bo was paid by Jyske Bank immediately after the shipment of the machinery while Jyske Bank is being paid by the agent in Lithuania through four instalments over a two-year period.

    “In this way, our agent has obtained a credit which can be used to finance new purchases from us”, says Hans-Otto Wildfang.

    Hans-Otto Wildfang sees the potential of using EKF´s SME guarantee proactively in other export markets, and the company is presently negotiating exports to several countries in Eastern Europe.
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