Guarantee for loss on production and loss on claim

The guarantee for loss on production and loss on claim covers the risk that your foreign buyer fails to make payments as per the agreement. It also covers your accumulated costs that you cannot invoice because the buyer has cancelled the agreement.

The amount that you can insure with the loss on production and loss on claim guarantee is based on your accumulated costs (invoice amounts minus profit margin).

This guarantee protects against events that occur with effect from the date on which you have a binding agreement. EKN can cover both small- and large-scale transactions with this guarantee.

Transactions that can be guaranteed with EKN’s guarantee for loss on production and loss on claim

With a guarantee from EKN, you know that you will receive compensation should your customer cancel the agreement or not pay, which makes it easier for you to offer the customer credit.

You can also use the guarantee as collateral if you choose to have a bank or other credit institution finance the transaction. When transferring the rights, EKN offers the bank favourable supplementary conditions, if the buyer accepts that the payment obligation is independent from the export contract. It can be documented directly in the export contract or in, for example, a bill of exchange, promissory note or letter of credit.

Application

For the supplementary conditions, you and the bank fill in the form Notice of transfer/pledge of rights and send to EKN.

SMEs with a maximum of 250 employees and a maximum of SEK 500 million in turnover have the opportunity to contact Almi. In this case, you assign the claim and the rights under the guarantee to the financier.

EKN’s offer

On receipt of your application, EKN assesses the risk of the transaction and you thereafter receive 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.

Extend the validity of the offer

Transactions can sometimes be lengthy processes. In such a case, it can be possible to extend the validity of the offer. If you wish to extend the validity of the offer, we will require updated information. You can apply via EKN Online or with the document below.

Request for guarantee

If you have received an offer from EKN, confirm the transaction and wish to take up the guarantee, you must send us a request that you wish to have the guarantee issued no later than 30 days after you have delivered. You submit your request via EKN Online.