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Arcam: “EKN unties economic knots”
Arcam develops, manufactures and sells equipment for the direct production of fully dense metal parts.
Arcam's main product can be described simply as a 3D printer which produces precise products based on CAD models. Its customers are mainly in the aerospace and implant industry.
Large transactions
Arcam's business model involves a small number of very large transactions. Each transaction represents about five to ten percent of the company's total annual turnover, which means financial security is critical.
EKN made the difference
The US company CalRAM operates in the aerospace industry and has been a customer of Arcam since 2005. When they recently wanted to purchase two more machines to increase production, the hard-pressed US banks were unwilling to approve a loan. Arcam's CEO Magnus René contacted EKN.
“They assessed the transaction and gave us the promise of a five-year loss on claim guarantee, which allowed us to offer CalRAM an equally long instalment plan. The combination of the order and guarantee meant that our bank granted the loan, discounted the claim and paid us directly. And as a result, we received the order and a large proportion of the proceeds immediately. CalRAM got their machines and are now making repayments directly to the bank. EKN can really untie economic knots,” says Magnus.
Published: Jan 04, 2012
Last updated: Jan 04, 2012