Guarantees for companies and banks
EKN's guarantees are utilized by banks and exporting companies. Companies providing credits to their customers and banks providing loans to buyers of Swedish goods and services cover their risks of non-payment. Banks also cover their risk on Swedish companies in connection with operating and investment financing.
The most requested guarantees and what they cover:
Guarantees for non-payment in supplier credits
- For credit periods up to 12 months – Guarantee for trade receivables.
- For longer export credits – Guarantee for Loss on Claim.
Buyer Credit guarantee
The Buyer Credit Guarantee is designed for banks financing purchase of Swedish goods and services. The guarantee covers the risk of non-payment by the borrower under a credit agreement.
Counter guarantee – for contract guarantees
The counter guarantee is utilized for contract guarantees, such as advance payment guarantees. It is used by banks to share the recourse risk on the supplier. The contract guarantee can be part of an export transaction or a transaction between a supplier and an exporting company.
Working capital credit guarantee
With a working capital credit guarantee, the bank shares the risk with EKN when providing working capital credits in the form of loans, invoice discounting or overdraft facilities.
EKN also offers guarantees for banks’ confirmed letters of credit and discounted bills of exchange. Exporting companies can insure the risk of cancellation and unfair calling of a contract guarantee. EKN also have a guarantee for investments abroad, as well as a guarantee for investment credits that facilitate access to financing when investing in production facilities and machines in Sweden.
During the Coronavirus crisis
EKN can temporarily, until the end of December 2021, guarantee short-term supplier credits to high-income countries. These transactions, shorter than two years, are normally insured by private credit insurers. Because of the Covid-19 crisis, EU has decided to allow also Export Credit Agencies like EKN to cover them.
Latest updated 2 Jul 2021