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Operating Lease Guarantee

​An Operating Lease Guarantee allows you to offer your customer the option of leasing or buying your equipment. This is a crucial sales parameter in case your customer only needs the equipment for a limited period or if ownership of the equipment does not bring your customer any additional benefit.

  • Advantages of Operating Lease Guarantee

    ​Advantages for you and your customer
    You can offer your customer a flexible solution, which allows your customer to lease your equipment for a limited period. This may help you earn a revenue on a product that you might not have managed to sell to the customer otherwise.
     
    Leasing as a sales parameter
    You can use leasing as an effective sales parameter in your discussions of possible new orders with your customers. Whether they wish to own or to lease, a guarantee from EKF will allow you to offer your customer a favourable financing solution, which brings you one step ahead of your competitors.
     
     
    ​Between you and your customer
    There is no third party involved in the lease agreement. It is only between you and your customer.
     
    Limited payment risk
    EKF covers your loss in case your customer does not pay lease instalments as agreed. This reduces your risk to a minimum.
     
  • What is Operating Lease Guarantee?

    Do you miss out on business opportunities because your customer prefers to lease rather than to own your product?

    An Operating Lease Guarantee can change this situation as it allows you to lease out rather than to sell products and equipment to your foreign customers, a fact that may have a great impact on your customer and your competitiveness.
     
    Many companies regularly find themselves in situations where they need special equipment to perform a particular assignment, but once this is completed, they no longer need the equipment – and the equipment may end up being a hassle rather than useful.
     
    The guarantee will make you appear more attractive to potential new customers. Your customer may have many good reasons why he prefers to lease rather than to buy the equipment.
     
    For instance, if your customer wishes to make use of the latest state-of-the-art equipment, does not want to be bound by service commitments or if ownership of the equipment does not add value to your customer´s business.

    By offering your customer the choice to either lease or buy, you are one step ahead of your competitors.

    An Operating Lease Guarantee makes sure that you will be covered, if, contrary to expectations, your customer is unable or unwilling to pay lease instalments as agreed. In this situation, EKF will cover the main part of your loss reducing your risk to a minimum. The guarantee can therefore help to increase your earnings and be a benefit to both you and your customer.

  • How does Operating Lease Guarantee work?

    ​EKF issues a guarantee to your company. This will allow you to lease out your equipment to an international customer. Your customer pays a monthly lease instalment for the lease of the equipment.

     

    ​Payment will terminate upon the expiry of the lease agreement and your customer returns the asset. You will then be able to lease out the equipment again.

     

  • What does Operating Lease Guarantee cost?

     
    ​​EKF charges a premium for issuing the guarantee. The premium ranges from 0.5% - 4.25% p.a. and is calculated on the basis of the credit period, your customer´s creditworthiness and the political situation in the customer´s country.
     
    Credit period: The credit period is the number of months the customer will lease your asset. The shorter the credit period, the lower the premium.
     
     
    The buyer´s creditworthiness: EKF assesses the customer´s creditworthiness, i.e. the likelihood that the customer will pay. The higher the creditworthiness, the lower the premium.
     
    The political risk in the lessee´s country: EKF assesses the risk of political unrest in your customer´s country. The lower the risk of political unrest, the lower the premium.
     
     
  • Terms & conditions regarding Operating Lease Guarantee

    ​Who is eligible for an Operating Lease Guarantee?
    As an export company, you are eligible for an Operating Lease Guarantee that allows you to lease out rather than to sell the equipment to your foreign customers.
     
    What does it require?
    You need to know the rules and regulations regarding VAT and leasing in the country where your customer is established. We will assess your customer and will issue a guarantee, if the customer is creditworthy.
    Your foreign customer makes a down payment of a minimum of 15 per cent of the export contract value.
     
    Your product must be suitable for leasing
    Leasing for foreign customers primarily involves capital goods and not consumer products, including durables.
     
    How much does EKF cover?
    EKF covers up to 90 per cent of the insured amount in case of loss
     
     
    The length of the credit period
    The lease agreement between you and your customer must cover a period of more than six months.

    Preconditions
    It is a precondition for the issue of a guarantee that your company helps to generate economic growth in Denmark.

    Environmental and social sustainability requirements
    You have to sign a declaration stating that the process of filling the order is conducted in an environmentally and socially responsible manner.

    What is not covered by the guarantee?
    The guarantee does not cover the return of the asset or its residual value.
     

Advantages of Operating Lease Guarantee

​Advantages for you and your customer
You can offer your customer a flexible solution, which allows your customer to lease your equipment for a limited period. This may help you earn a revenue on a product that you might not have managed to sell to the customer otherwise.
 
Leasing as a sales parameter
You can use leasing as an effective sales parameter in your discussions of possible new orders with your customers. Whether they wish to own or to lease, a guarantee from EKF will allow you to offer your customer a favourable financing solution, which brings you one step ahead of your competitors.
 
 
​Between you and your customer
There is no third party involved in the lease agreement. It is only between you and your customer.
 
Limited payment risk
EKF covers your loss in case your customer does not pay lease instalments as agreed. This reduces your risk to a minimum.
 

What is Operating Lease Guarantee?

Do you miss out on business opportunities because your customer prefers to lease rather than to own your product?

An Operating Lease Guarantee can change this situation as it allows you to lease out rather than to sell products and equipment to your foreign customers, a fact that may have a great impact on your customer and your competitiveness.
 
Many companies regularly find themselves in situations where they need special equipment to perform a particular assignment, but once this is completed, they no longer need the equipment – and the equipment may end up being a hassle rather than useful.
 
The guarantee will make you appear more attractive to potential new customers. Your customer may have many good reasons why he prefers to lease rather than to buy the equipment.
 
For instance, if your customer wishes to make use of the latest state-of-the-art equipment, does not want to be bound by service commitments or if ownership of the equipment does not add value to your customer´s business.

By offering your customer the choice to either lease or buy, you are one step ahead of your competitors.

An Operating Lease Guarantee makes sure that you will be covered, if, contrary to expectations, your customer is unable or unwilling to pay lease instalments as agreed. In this situation, EKF will cover the main part of your loss reducing your risk to a minimum. The guarantee can therefore help to increase your earnings and be a benefit to both you and your customer.

How does Operating Lease Guarantee work?

​EKF issues a guarantee to your company. This will allow you to lease out your equipment to an international customer. Your customer pays a monthly lease instalment for the lease of the equipment.

 

​Payment will terminate upon the expiry of the lease agreement and your customer returns the asset. You will then be able to lease out the equipment again.

 

What does Operating Lease Guarantee cost?

 
​​EKF charges a premium for issuing the guarantee. The premium ranges from 0.5% - 4.25% p.a. and is calculated on the basis of the credit period, your customer´s creditworthiness and the political situation in the customer´s country.
 
Credit period: The credit period is the number of months the customer will lease your asset. The shorter the credit period, the lower the premium.
 
 
The buyer´s creditworthiness: EKF assesses the customer´s creditworthiness, i.e. the likelihood that the customer will pay. The higher the creditworthiness, the lower the premium.
 
The political risk in the lessee´s country: EKF assesses the risk of political unrest in your customer´s country. The lower the risk of political unrest, the lower the premium.
 
 

Terms & conditions regarding Operating Lease Guarantee

​Who is eligible for an Operating Lease Guarantee?
As an export company, you are eligible for an Operating Lease Guarantee that allows you to lease out rather than to sell the equipment to your foreign customers.
 
What does it require?
You need to know the rules and regulations regarding VAT and leasing in the country where your customer is established. We will assess your customer and will issue a guarantee, if the customer is creditworthy.
Your foreign customer makes a down payment of a minimum of 15 per cent of the export contract value.
 
Your product must be suitable for leasing
Leasing for foreign customers primarily involves capital goods and not consumer products, including durables.
 
How much does EKF cover?
EKF covers up to 90 per cent of the insured amount in case of loss
 
 
The length of the credit period
The lease agreement between you and your customer must cover a period of more than six months.

Preconditions
It is a precondition for the issue of a guarantee that your company helps to generate economic growth in Denmark.

Environmental and social sustainability requirements
You have to sign a declaration stating that the process of filling the order is conducted in an environmentally and socially responsible manner.

What is not covered by the guarantee?
The guarantee does not cover the return of the asset or its residual value.
 
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