Large export orders can be a serious financial burden for small and medium-sized companies. With a working credit from EKN, C.O.Lindbergs in Vetlanda can confidently continue to invest in the capture of new markets.
C.O.Lindbergs Verkstads AB in Vetlanda designs and manufacturers everything from single components to full-scale machinery. Its customers represent a range of different sectors, such and pulp and paper, electronics, vehicles, and refuse collection.
Most of the customers are in Sweden, but in recent years C.O.Lindbergs has been exporting equipment to Finland and Norway.
Waste sorting for export
C.O.Lindbergs’ EcoBag is a sorting system that simplifies the handling of household refuse. The principle is that consumers sort their refuse in different coloured plastic bags, which are then placed in the refuse chute or dustbin. The bags are transported to a waste plant, where the different fractions are sorted automatically.
“The first EcoBag system was delivered to Vetlanda,” explains managing director Anders Lindberg. “We believe that this solution has plenty of potential in Northern Europe, and we will be putting a lot of effort into the marketing. In 2007 we received our first large export order from Skien in Norway.”
Working capital guarantee from EKN fixes the financing
“The Skien order corresponds to a value of almost half of our annual turnover,” says Anders Lindberg. “We would not be able to manage the financing for such a large undertaking during the project period, and the credit risk is too excessive for our bank. The bank therefore suggested that we should find out if EKN could help us, and the solution that EKN proposed in the form of a working capital guarantee has functioned excellently for us.”
“We now have several export orders in progress, and look forward to a continuation of our cooperation with EKN. When you don't have the financial muscle required for such large export ventures, their solutions are an excellent way of facing up to the risks involved.”