What we do

SME Guarantee

When you help your international customer with financing, you are more likely to land export orders. An attractive, long-term credit is certainly a strong sales argument. With an SMV Guarantee from EKF, you are able to offer your customer financing without taking unnecessary risks. And even though your customer buys on credit, you get your payment immediately.

  • Advantages of SME Guarantee

    You can use credit as a competitive parameter

    You can use a financing solution actively to promote sales. You are one step ahead of your competitors if you are able to offer your customer an attractive financing solution.
     

    Closing sales immediately

    EKF offers a preliminary assessment of your customer, which will allow you to offer a good product as well as a financing solution already during your sales presentation. Thus, your customer will be able to say yes without having to consult the bank.

    You can get paid immediately

    Even though your customer obtains a credit and payment is spread over a long period, you will be paid as soon as you deliver the goods.
  • What is SME Guarantee?

    An SME Guarantee is aimed at small and medium-sized export companies.
    This guarantee gives Danish companies better opportunities to offer a customer abroad long-term credit on a specific export order.
     
    The point is that even though your customer obtains a credit, you will be paid immediately.
     
    How is that possible? It is possible because you immediately sell the credit agreement to your bank with a 100% guarantee from EKF. You receive the money from the bank right away, and the bank is paid by EKF if, contrary to expectations, the customer cannot or will not pay. EKF’s guarantee provides the bank with the security the bank requires in order to participate.
     
    Financing to foreign customers is primarily used in connection with capital goods and with credit periods of six months and above. EKF can guarantee contract amounts of up to DKK 25 million.
     
    EKF covers up to 100 per cent of the loss in compensation to the bank. As an exporter, your company has to cover an own risk of at least 10 per cent.
    Leaflet for international customers in eight different languages

    We have produced a leaflet, which you can hand out to your international customer. The leaflet describes how your customer may obtain long-term credit to pay for the orders placed with you. 

     
    We will be pleased to send you the leaflets so you can hand them out to your customers. Send us an email at ekf@ekf.dk, and we can post you some leaflets as soon as possible.
  • How does SME Guarantee work?

    EKF issues a guarantee to your bank and takes over the main part of the risk.

    You offer your customer a credit and immediately sell the credit agreement to your bank.

    It means that you get your money when you deliver even though the customer buys on credit.

    If anything goes wrong, EKF pays compensation to the bank.

  • What does SME Guarantee cost?

    What does an SME Guarantee cost?
    Your customer pays a premium of 0.5-4% p.a.
    It does not cost you anything to help your customers to credit. EKF’s guarantees are not free, but your customer pays the costs as part of the credit.
     
    Typically, your customer will pay a premium to us between 0.5 and 4% depending on the country, the customer’s credit rating and the tenor of the loan.
    You can easily ou can easily calculate the premium using our premium calculator.

    In addition to the premium to EKF, the customer will have to pay interest and costs to the bank. Your bank can give you the total price.
  • Terms & conditions regarding SME Guarantee

    Who is eligible for an SME Guarantee?
    All small and medium-sized Danish export companies are eligible, i.e. companies

    • with fewer than 250 employees
    • with less than EUR 50 million in turnover and/or
    • with less than EUR 43 million in balance and
    • a maximum of 25% of its shares may be owned by a company that does not fulfil the SME criteria.
    Financing to foreign customers is primarily used in connection with capital goods and with credit periods of six months and above.

    An SME Guarantee cannot be used to finance consumer goods, including durables.
     
    At least 25% of the cost of your good must be materials from Denmark or work carried out in Denmark.
     
    Furthermore, EKF will assess the creditworthiness of the international buyer before we issue a guarantee.
     
    How much does an SME Guarantee cover?
    EKF can guarantee contract amounts of up to DKK 25 million.
     
    How long is the credit period?
    EKF issues the SME Guarantee with a credit period of up to five years.
    Furthermore, EKF requires that the minimum credit period to the international buyer is six months.

    Conditions
    Usually, the foreign customer must pay at least 15% of the order in advanceUsually, the foreign customer must pay at least 15% of the order in advance. The credit should be granted as a serial loan with principal repayments of equal size plus accrued interest.

    Requirements to environmental and social sustainability
    When the transaction with EKF totals more than DKK 5 million we assess the risks related to the environment and human rights in the transaction.
     

    What does EKF cover?
    EKF pays out compensation if your bank makes a loss on an export transaction as a result of commercial or political risks.

    Commercial risk occurs when the buyer is unable to pay due to liquidation or insolvency.
    Political risk occurs when the Danish company does not receive payment for products due to impediments in the country. Such impediments include war or civil war, currency shortage, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.
     
    EKF covers up to 100% of the loss in compensation to the bank whereas the exporter must cover an own risk of at least 10%.

Advantages of SME Guarantee

You can use credit as a competitive parameter

You can use a financing solution actively to promote sales. You are one step ahead of your competitors if you are able to offer your customer an attractive financing solution.
 

Closing sales immediately

EKF offers a preliminary assessment of your customer, which will allow you to offer a good product as well as a financing solution already during your sales presentation. Thus, your customer will be able to say yes without having to consult the bank.

You can get paid immediately

Even though your customer obtains a credit and payment is spread over a long period, you will be paid as soon as you deliver the goods.

What is SME Guarantee?

An SME Guarantee is aimed at small and medium-sized export companies.
This guarantee gives Danish companies better opportunities to offer a customer abroad long-term credit on a specific export order.
 
The point is that even though your customer obtains a credit, you will be paid immediately.
 
How is that possible? It is possible because you immediately sell the credit agreement to your bank with a 100% guarantee from EKF. You receive the money from the bank right away, and the bank is paid by EKF if, contrary to expectations, the customer cannot or will not pay. EKF’s guarantee provides the bank with the security the bank requires in order to participate.
 
Financing to foreign customers is primarily used in connection with capital goods and with credit periods of six months and above. EKF can guarantee contract amounts of up to DKK 25 million.
 
EKF covers up to 100 per cent of the loss in compensation to the bank. As an exporter, your company has to cover an own risk of at least 10 per cent.
Leaflet for international customers in eight different languages

We have produced a leaflet, which you can hand out to your international customer. The leaflet describes how your customer may obtain long-term credit to pay for the orders placed with you. 

 
We will be pleased to send you the leaflets so you can hand them out to your customers. Send us an email at ekf@ekf.dk, and we can post you some leaflets as soon as possible.

How does SME Guarantee work?

EKF issues a guarantee to your bank and takes over the main part of the risk.

You offer your customer a credit and immediately sell the credit agreement to your bank.

It means that you get your money when you deliver even though the customer buys on credit.

If anything goes wrong, EKF pays compensation to the bank.

What does SME Guarantee cost?

What does an SME Guarantee cost?
Your customer pays a premium of 0.5-4% p.a.
It does not cost you anything to help your customers to credit. EKF’s guarantees are not free, but your customer pays the costs as part of the credit.
 
Typically, your customer will pay a premium to us between 0.5 and 4% depending on the country, the customer’s credit rating and the tenor of the loan.
You can easily ou can easily calculate the premium using our premium calculator.

In addition to the premium to EKF, the customer will have to pay interest and costs to the bank. Your bank can give you the total price.

Terms & conditions regarding SME Guarantee

Who is eligible for an SME Guarantee?
All small and medium-sized Danish export companies are eligible, i.e. companies

  • with fewer than 250 employees
  • with less than EUR 50 million in turnover and/or
  • with less than EUR 43 million in balance and
  • a maximum of 25% of its shares may be owned by a company that does not fulfil the SME criteria.
Financing to foreign customers is primarily used in connection with capital goods and with credit periods of six months and above.

An SME Guarantee cannot be used to finance consumer goods, including durables.
 
At least 25% of the cost of your good must be materials from Denmark or work carried out in Denmark.
 
Furthermore, EKF will assess the creditworthiness of the international buyer before we issue a guarantee.
 
How much does an SME Guarantee cover?
EKF can guarantee contract amounts of up to DKK 25 million.
 
How long is the credit period?
EKF issues the SME Guarantee with a credit period of up to five years.
Furthermore, EKF requires that the minimum credit period to the international buyer is six months.

Conditions
Usually, the foreign customer must pay at least 15% of the order in advanceUsually, the foreign customer must pay at least 15% of the order in advance. The credit should be granted as a serial loan with principal repayments of equal size plus accrued interest.

Requirements to environmental and social sustainability
When the transaction with EKF totals more than DKK 5 million we assess the risks related to the environment and human rights in the transaction.
 

What does EKF cover?
EKF pays out compensation if your bank makes a loss on an export transaction as a result of commercial or political risks.

Commercial risk occurs when the buyer is unable to pay due to liquidation or insolvency.
Political risk occurs when the Danish company does not receive payment for products due to impediments in the country. Such impediments include war or civil war, currency shortage, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.
 
EKF covers up to 100% of the loss in compensation to the bank whereas the exporter must cover an own risk of at least 10%.
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