Bill of exchange guarantee
The bill of exchange guarantee is aimed at banks that acquire bills of exchange in an export transaction. The guarantee covers non-payment of the bill of exchange.
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
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. Because of EU rules however, the bill of exchange guarantee cannot be used for risk periods of less than two years in transactions with an EU country, Australia, Iceland, Japan, Canada, Norway, New Zealand, Switzerland or the USA.
Apply in good time before the bill of exchange is acquired. You must attach to your application a supplementary form from the exporter describing the transaction. An application for an offer costs nothing. For some transactions you may need to give supplementary financial information about the acceptor. A form is used to apply for the guarantee.Apply here
EKN assesses the risks of the transaction and sends you an offer. The offer states the conditions and the premium, or in other words what the guarantee will cost you.
It is very important that you read EKN’s conditions and any supplementary conditions, prior to your requesting the guarantee, so that you know what is applicable to the guarantee.Premium indication
Request the 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 notification is done on a form.Download form
EKN issues the guarantee and you pay the premium.
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 done 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 notification is done on a form. EKN pays compensation after a waiting period of one month. EKN also then takes over your claim.Download form
Latest updated 30 Nov 2020