Export opportunities
During the year, EKN guaranteed transactions with India for different sectors of Swedish industry. Hyderabad is the sixth largest Indian city.
Demand for EKN’s guarantees has risen strongly. Both small and large companies in different sectors need to guarantee business risks. Our customers are more satisfied when we act quickly.
In good times, EKN’s guarantees are mainly in demand for transactions in new markets and with new customers. In more difficult times, exporters and banks need our guarantees for new and old markets and customers. We have noted increasing demand in recent years and this really took off in the second half of the year. We issued 1,496 offers for transactions in 124 countries, which is more than in any previous year. We also set a volume record. The volume of offers increased to SEK 69 billion during the year compared with SEK 46 billion the previous year.
Risk protection for export transactions is in demand from small and large companies alike in a number of different industries.
Faster processing and on-line guarantees
We regularly ask our customers if they find us fast enough, if we give clear information, if we adapt to their needs and if they would recommend EKN to others. We also ask them to rate us. Last year, they gave us an average of 4.0 on a scale of 0 to 5, where 5 is the best. This year, the average rose to 4.3. One reason for the improved score is that we have substantially cut the time from offer decision to communication of the decision to the guarantee holder.
During the year we launched EKN online. This allows our guarantee holders to apply for a guarantee, manage the application online and obtain a list of applications and guaranteed transactions.
EKN’s guarantees
There is a need for EKN’s guarantees in every part of the business process, from sales and negotiation to production and delivery, until the customer’s final payment.
The loss on claim guarantee covers the risk of non-payment by the exporter’s customer. There are different versions of the guarantee depending on the length of the credit period and whether the exporter or bank is responsible for the credit. For example, the basic guarantee is suitable for small and medium-sized companies’ need for short credit periods.
The guarantee against loss on production/loss on claim covers the combined risk of non-payment during the credit period and loss arising during production.
The bill of exchange guarantee allows the bank to insure discounted bills of exchange.
With the letter of credit guarantee, the bank can share the risk with EKN when confirming letters of credit.
The working capital guarantee allows the bank to share the risk with EKN when providing working capital loans.
The counter guarantee is used when the exporter’s customer requests a contract guarantee. The bank issuing the contract guarantee and EKN then share the risk of the guarantee being called by the beneficiary.
The guarantee for unfair calling is used by the exporter to cover against the risk of unfair calling of a contract guarantee by the beneficiary.
The investment guarantee covers against the risk of political events in the case of investment abroad.
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