Lesni aided by working capital guarantee

The Billund firm of Lesni saw orders dry up as soon as the economic crisis set in. EKF guaranteed Lesni financing to pay sub-suppliers, when orders started to return.
Lesni produces plants for air and water purification to customers worldwide
How much
DKK 1.5 – 7.5 million per plant
EKF's role
Working capital guarantee of up to DKK 4 million
EKF product
Working Capital Guarantee; EKF cleantech guarantee
  • Quote

    The agreement with EKF helped to improve our immediate situation and future prospects.

    Leif Eskildsen, Managing Director, Lesni A/S

    ​In 2009, Lesni, which manufactures air and water purification plants, suddenly faced empty order books in the wake of the economic crisis, which presented it with major challenges.

    By early 2010, the company had managed to secure new orders, but tight cash flow meant that it was short of money for sub-suppliers, payroll and creditors. There was thus no money to take on the new orders.

    Lesni exports up to 90 per cent of its production and is known for its excellent products and valuable expertise in air and water purification for pharmaceuticals, furniture, paints & varnishing manufacturers, and public-sector enterprises.

    The plants are exported to clients in Europe, the Middle East, Asia, Australia, Latin America and the USA. It was vital for Lesni to find a solution so it could retain its clients.

  • ​Lesni's bank was unwilling to extend its commitment with the company, but brought people from the company along to a meeting with EKF to find a solution. The bank was familiar with EKF's propositions and visited EKF with the company to find a solution to its constricted finances when the orders began to come in again.

    EKF proposed a working capital guarantee for new orders. This would give Lesni the cash to pay its suppliers and employees.

    "Negotiating a deal with EKF was a positive process. Our agreement has also strengthened client confidence in our business", says managing director Leif Eskildsen.

  • ​Both Lesni and its bankers accepted EKF's proposal and in spring 2010, EKF granted Lesni an working capital guarantee of DKK 4 million for a six-month term. EKF is thus providing security for the bank's increased commitment with the company. The guarantee can be used on an ongoing basis for new orders up to the agreed limit.

    The result was that during the early summer of 2010, Lesni was able to take on several new orders. In addition, the company has gained better control over its creditors, and by July 2010 the company was back in profit.

    EKF has since then extended the export guarantee for a longer term. In addition, the parties have agreed to discuss the possibility of enlarging the commitment.

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