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Capital Expenditure Guarantee

A Capital Expenditure Guarantee can help you secure a capital expenditure loan from your bank to invest in new machinery, production facilities or foreign subsidiaries to keep up with demand for your products.

  • Advantages of Capital Expenditure Guarantee

    ​Obtain credit from your bank when it requests additional security
    With a Capital Expenditure Guarantee, you will find it easier to secure a loan from the bank to grow your company.
     
    Obtain loans for production facilities and machinery
    A loan for new facilities and machinery will allow you to invest in your company’s growth and future. That way, you will be able to keep up with demand for your products and explore new markets.
    Applies to investment both in Denmark and abroad
    We are there to help, regardless of whether you are looking to invest in a subsidiary abroad or expand production in Denmark.
     
    Also available for leasing
    You can use the guarantee for leasing machinery and other production facilities.
  • What is Capital Expenditure Guarantee?

    ​When you are looking to grow your company, a Capital Expenditure Guarantee can secure you a loan with a bank.
     
    Use the loan to purchase or lease new machinery and production facilities for your company in Denmark or a subsidiary abroad.
    ​We provide a guarantee to your bank for the capital expenditure loan, thereby providing the security your bank requires to grant you the loan.
     
    When we cover part of the bank’s risk of loss, the bank will be more willing to grant you a loan.
  • How does Capital Expenditure Guarantee work?

    ​EKF issues a guarantee to your bank to provide security for the loan. By doing so, we take over the main part of the risk faced by the bank.
    ​With the backing of EKF, the bank will be able to offer you the loan required to take on more customers and bigger orders.
  • What does Capital Expenditure Guarantee cost?

    EKF charges a premium for issuing a Capital Expenditure Guarantee.
     
    Small and medium-sized enterprises (SMEs) pay a premium set by the EU, depending on the credit rating of the enterprise. Your credit rating will be assessed by EKF, based on the financial statements of the last three years.
     
    You will be credit rated in a category going from A (best credit rating) to B-. The category determines the premium you will pay to EKF.
     
    ​The premium payable by large companies is determined based on current market conditions.
    Rating     Premium p.a.
    A             0.55%
    BBB         0.8%
    BB           2.0%
    B+           3.8%
    B-            6.3%
     
    In addition, you will pay interest and costs to your bank for borrowing the funds.
    Your bank can give you the total price.
  • Terms & conditions regarding Capital Expenditure Guarantee

    Who is eligible for a Capital Expenditure Guarantee?
    Capital expenditure guarantees are open to banks in Denmark and abroad that provide financing to Danish companies looking to invest in production facilities in Denmark or abroad. The Danish company must own more than 50% of the subsidiary throughout the repayment term of the loan.
     
    The borrower must be rated as creditworthy based on a thorough assessment designed to hold the Danish government free from losses.
     
    How much does a Capital Expenditure Guarantee cover?
    No limit applies to the amount covered by a Capital Expenditure Guarantee.
    Environmental and social sustainability requirements
    When your company's business with EKF totals more than DKK 25 million we assess your company's approach to the environment and human rights.

    What is the term of a Capital Expenditure Guarantee?
    The maximum repayment term of the loan is usually up to seven years. But longer repayment terms can be arranged under special circumstances.
     
    Conditions
    The investment must be a natural progression of the company’s expansion.
     
    What does EKF cover?
    EKF pays compensation if your company’s bank in Denmark or abroad suffers a loss on the loan.

    EKF covers up to 80% of the bank’s loss, and the bank is therefore liable for at least 20% of the risk.

Advantages of Capital Expenditure Guarantee

​Obtain credit from your bank when it requests additional security
With a Capital Expenditure Guarantee, you will find it easier to secure a loan from the bank to grow your company.
 
Obtain loans for production facilities and machinery
A loan for new facilities and machinery will allow you to invest in your company’s growth and future. That way, you will be able to keep up with demand for your products and explore new markets.
Applies to investment both in Denmark and abroad
We are there to help, regardless of whether you are looking to invest in a subsidiary abroad or expand production in Denmark.
 
Also available for leasing
You can use the guarantee for leasing machinery and other production facilities.

What is Capital Expenditure Guarantee?

​When you are looking to grow your company, a Capital Expenditure Guarantee can secure you a loan with a bank.
 
Use the loan to purchase or lease new machinery and production facilities for your company in Denmark or a subsidiary abroad.
​We provide a guarantee to your bank for the capital expenditure loan, thereby providing the security your bank requires to grant you the loan.
 
When we cover part of the bank’s risk of loss, the bank will be more willing to grant you a loan.

How does Capital Expenditure Guarantee work?

​EKF issues a guarantee to your bank to provide security for the loan. By doing so, we take over the main part of the risk faced by the bank.
​With the backing of EKF, the bank will be able to offer you the loan required to take on more customers and bigger orders.

What does Capital Expenditure Guarantee cost?

EKF charges a premium for issuing a Capital Expenditure Guarantee.
 
Small and medium-sized enterprises (SMEs) pay a premium set by the EU, depending on the credit rating of the enterprise. Your credit rating will be assessed by EKF, based on the financial statements of the last three years.
 
You will be credit rated in a category going from A (best credit rating) to B-. The category determines the premium you will pay to EKF.
 
​The premium payable by large companies is determined based on current market conditions.
Rating     Premium p.a.
A             0.55%
BBB         0.8%
BB           2.0%
B+           3.8%
B-            6.3%
 
In addition, you will pay interest and costs to your bank for borrowing the funds.
Your bank can give you the total price.

Terms & conditions regarding Capital Expenditure Guarantee

Who is eligible for a Capital Expenditure Guarantee?
Capital expenditure guarantees are open to banks in Denmark and abroad that provide financing to Danish companies looking to invest in production facilities in Denmark or abroad. The Danish company must own more than 50% of the subsidiary throughout the repayment term of the loan.
 
The borrower must be rated as creditworthy based on a thorough assessment designed to hold the Danish government free from losses.
 
How much does a Capital Expenditure Guarantee cover?
No limit applies to the amount covered by a Capital Expenditure Guarantee.
Environmental and social sustainability requirements
When your company's business with EKF totals more than DKK 25 million we assess your company's approach to the environment and human rights.

What is the term of a Capital Expenditure Guarantee?
The maximum repayment term of the loan is usually up to seven years. But longer repayment terms can be arranged under special circumstances.
 
Conditions
The investment must be a natural progression of the company’s expansion.
 
What does EKF cover?
EKF pays compensation if your company’s bank in Denmark or abroad suffers a loss on the loan.

EKF covers up to 80% of the bank’s loss, and the bank is therefore liable for at least 20% of the risk.
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