Bill of exchange guarantee

With an EKN guarantee, the bank receives compensation if the acceptor of a bill of exchange fails to pay. The guarantee improves the exporting company’s liquidity by enabling the bank to take over the bill of exchange.

Transactions that can be guaranteed with EKN’s bill of exchange guarantee

You can apply for a bill of exchange guarantee for various types of foreign transactions associated with the export of goods and services. EKN can cover both small- and large-scale transactions with this guarantee.

However, due to EU rules, the bill of exchange guarantee cannot be used for risk periods of less than two years in transactions with an EU country as well as: Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland or the US.

Apply for a bill of exchange guarantee

Apply in good time before the bill of exchange is acquired. A supplementary form from the exporter that describes the export transaction must be attached to your application. An application for an offer is free of charge. For some transactions you may need to give supplementary financial information about the acceptor.

Offer

EKN assesses the risks of the transaction and sends you an offer. The offer states the terms and conditions as well as the premium, or in other words what the guarantee will cost.

It is very important that you read EKN’s General Conditions as well as any supplementary conditions, prior to the issuance of your guarantee, so that you know what is applicable to the guarantee.

Request for guarantee

When the bill of exchange is acquired you must inform EKN of this within 30 days stating that you wish the guarantee to be issued. The application is provided using a form. The Declaration from the guarantee holder must be attached to the guarantee application.

Guarantee

EKN issues the guarantee, and you pay the premium.

Non-payment

You must inform EKN of non-payment under the bill of exchange. Do not forget to protest in the event of non-payment. This must normally be carried out within 2–3 banking days after the due date. Payment delay must be reported to EKN within 30 days after the due date on the bill of exchange. The application is provided using a form. EKN pays compensation after a qualification period of one month and will then also take over your claim.