Administrative processing times have been further reduced. Three new products were launched during the year, and the cooperation with Almi has been expanded. Eight Almi regions are now selling EKN’s counter guarantee.

EKN is sending out a survey to everyone who has received guarantees or indemnifications. This is one way of getting immediate and continuous information about the level of customer satisfaction. This continued during 2006 and an information database about customer wishes is taking shape, which will form the basis for development work.

Administrative processing times further reduced

Administrative processing times are a key concern for EKN customers. For some years, EKN has therefore been striving to cut the time from application to decision, and from notification of loss to indemnification. During 2006, EKN significantly cut the time from application to decision, even though the number of transactions increased substantially. This is the result of more efficient procedures – as well as the fact that administrative processing times have attracted attention and been measured.

For all guarantee transactions, the median administrative time, including dispatch of the decision, has gone down from 25 days in 2004 to 14 days in 2006. For what are called long transactions, with medium- and long-term credit finance and a great many complicated business matters, the median value has gone down from 42 to 23 days over the same period. For short transactions, with credit risks of up to one year, progress has been relatively even more pronounced. For these transactions, the median value has gone down from 24 days in 2004 to 10 days in 2006. SMEs above all are to be found in this specially prioritised category.

For indemnifications, EKN pays interest compensation to the guarantee holder if the administrative time exceeds 30 days. This special compensation was only paid out in two cases during 2006. There are also monitoring of the time taken by EKN from when a recovery payment is received until the calculation and payment of the guarantee holder’s excess is made. The average time was cut from 29 days to 17 days during 2006.

Working capital for small and medium-sized companies

With the working capital guarantee, EKN has a broader product range, well adapted to SMEs. The new guarantee makes it easier for Swedish companies to arrange, through their banks, the financing needed for export transactions. When the bank grants a loan to the exporter, for example in the form of working capital or an overdraft facility, EKN guarantees 50 percent of the amount granted. The bank is thus protected against the risk of the exporter not repaying the loan. This increases the scope for additional credit from the bank, and increases the export opportunities for the exporter. The guarantee is designed to make it easier for SMEs to obtain capital. During the six months this guarantee has been available, EKN has issued seven offers and two guarantees. Thanks to the product development in recent years, exporting companies can now have support from EKN throughout their entire business processes.

Marketing, product launches and cooperation with Almi

EKN’s new website was launched at the start of the year. On the new website, many functions have been improved, including country risk information and premium calculations. As well as these e-services, EKN has started to work on a function to make it possible to apply and follow the process online. This, it is hoped, will enhance the efficiency of both the guarantee holder’s and EKN’s procedures.
The new website has been a vital pre-requisite for marketing efforts during the year. At the start of the year, two guarantees were launched – the new bill of exchange guarantee and the revised letter of credit guarantee – by mailshots sent to exporting companies and banks. Later in the year, the working capital guarantee was also ready for launch. The cooperation with Almi has been an important part of EKN’s efforts to reach out to more SMEs.

Improved premium system

Several improvements has been made to the premium system. The loss on claim guarantee now has a 95 percent coverage rate as standard for both political and commercial risks, plus the option to choose other coverage rates. By setting a lower coverage rate, the guarantee holder can now influence the premium, even for short guarantee periods. For short term guarantees, a standardised discount system has been introduced, which comes into effect if the debtor has high creditworthiness. Securities in a transaction now have a greater bearing on setting the premium. EKN has also introduced the option for guarantee holders to pay premiums in arrears instead of in advance – something that may help to ease the burden for exporters and thus also the buyer’s liquidity. In addition, EKN will be producing country risk classifications for some countries that are more favourable than the OECD country risk classifications. EKN is however bound by the OECD agreement on the lowest premium levels. This means that more advantageous classifications may not always be fully achievable.

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