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SME guarantee enables exports of combine harvesters to Bulgaria

A Bulgarian machinery dealer wanted to buy two second-hand combine harvesters from Vinderup Maskinforretning, but did not have the funds. Thanks to an SME guarantee, Salling Bank was able to lend the buyer the money.
Vinderup Maskinforretning sold two second-hand combine harvesters to a Bulgarian machinery dealer.
How much
DKK 1.5 million
EKF's role
EKF enabled the buyer to obtain credit from Salling Bank.
EKF product
SME Guarantee
  • Quote

    I can see great potential for using EKF's guarantees and credit facilities when selling abroad.

    Jan Pedersen, CEO, Vinderup Maskinforretning
    ​In spring 2013 Vinderup Maskinforretning was visited by a Bulgarian machinery dealer interested in buying two second-hand combine harvesters.

    Unfortunately, the dealer did not have the funds to buy the combines, which had a combined price tag of DKK 1.5 million, because he could not expect to get payment from farmers until later in the year when the harvest was in.

    "There's a good market for used Danish agricultural machinery in Eastern Europe, but money is often an issue when it comes to big machines worth more than DKK 500 000,” says Jan Pedersen, CEO of Vinderup Maskinforretning.

    Vinderup Maskinforretning itself was not in a position to grant the Bulgarian buyer a lengthy credit period.
  • ​The Bulgarian dealer mentioned that he could buy second-hand agricultural machinery in Germany with assistance from the country's export credit agency.

    Jan Pedersen from Vinderup Maskinforretning therefore turned to EKF for help through local bank Salling Bank.
    ​Arne Nielsen, head of corporate business at Salling Bank, contacted EKF to sign the bank up for the SME guarantee scheme, which gives a bank full security for loans to foreign buyers purchasing goods in Denmark.

    "EKF got us signed up quickly and were very helpful throughout, answering our questions and being flexible about the SME guarantee," says Nielsen.
  • ​Salling Bank applied for an SME guarantee online and was granted security for the credit extended to the Bulgarian buyer. Vinderup Maskinforretning then had the green light to export the two combine harvesters, which were delivered in spring 2013 with two years' credit for the buyer.

    "The SME guarantee from EKF got us a sale to Bulgaria that we wouldn't otherwise have had," says Jan Pedersen, CEO of Vinderup Maskinforretning. "EKF are an overlooked resource in the machinery industry, but this case goes to show that they're a really useful one, so it's madness that the industry doesn't make far more use of them."
    ​Arne Nielsen, head of corporate business at Salling Bank, also sees potential for helping local exporters in the future.

    "As a small bank, we have very limited experience of exports, but we aim to give our customers the best possible service. With EKF guaranteeing the credit extended to the foreign buyer, we don't need to get credit ratings and worry about legal action if payments don't flow in as agreed."
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