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For working capital credits
The working capital credit guarantee makes it easier for small and medium-sized exporting companies to obtain capital.
The guarantee reduces the bank’s risk associated with the borrower and increases the scope for new credit.
With a working capital credit guarantee, the bank shares the risk with EKN when offering working capital in the form of loans or overdraft facilities. EKN guarantees 50 percent of the total granted amount.
Credit that can be guaranteed
EKN can issue working capital credit guarantees for loans and overdraft facilities where the capital is used to finance export activity. Capital may be required to cover expenses arising before an export order is signed or after the agreement. This must be separate from the borrower's requirement for more long-term venture capital or equity – used in order to become established as an exporter, for example.
If the application concerns an overdraft facility or loan that is not associated with the financing of a specific export transaction, a considerable proportion of the borrower's sales must relate to exports of Swedish goods & services.
The bank shall provide the support data EKN needs to make a decision about the guarantee and the premium and other conditions. The duration of the credit shall not normally exceed 24 months, and overdraft facilities shall not exceed 12 months.
The guarantee is designed for banks or other lenders that grant credit to small and medium-sized companies with up to 250 employees and a maximum turnover of SEK 500 million.
Published: Aug 24, 2010
Last updated: Aug 24, 2010