The Export Leap

When a bank issues working capital credit guarantees of up to and including SEK 10 million in the form of loans, credit lines or overdraft facilities, or offers invoice financing services to growth companies, EKN covers up to 75 per cent of the creditor’s risk. The initiative is designed for companies that have been selling commercially for a maximum of three years.

The working capital credit guarantee helps provide capital for companies that already export, companies that plan to export and companies that are subcontractors to export companies, even if the company is part of a larger group. While positive earnings are not a necessity, the company’s future projections must be healthy and realistic.

Credits that can be guaranteed with “The Export Leap,” EKN’s working capital credit guarantees for growth companies

The term of credit lines is limited to a maximum of 12 months, with the possibility of extending this by up to two years. Thereafter, the bank may apply for a working capital credit guarantee with 50 per cent risk mitigation. Loan terms may extend for a maximum of five years.

The need for capital may pertain to expenses incurred both before and after export orders are signed and may cover purchases of components, tools or inventories, or other expenses related to an export initiative. The needed capital must be separate from the creditor’s need for more long-term risk or equity capital.

If the application concerns a credit that does not involve financing for a specific export transaction, at least 25 per cent of the creditor’s sales must comprise exports of Swedish goods or services, or alternatively, forecasts must exist suggesting that this will be achieved within the term of the credit.

If the creditor is a subcontractor to an exporting company, a material amount of the export company’s sales must comprise exports of Swedish goods or services.

Application and more information

Application forms, general terms and conditions, how to manage problems in the transaction, etc., can be found on the Swedish page for working capital credit guarantees for SMEs.

You must attach to your application Appendix to the application for working capital credit guarantees in conjunction with exports within the framework for The Export Leap 6.05 which can be found on the Swedish product page for the Export Leap.