Combined guarantee for loss on production and loss on claim
There are two versions of this guarantee: either with the exporter as guarantee holder or with the exporter and bank as guarantee holders in combination. The combined guarantee with both exporter and bank as guarantee holders is described here.
With both exporter and bank as guarantee holders
With this EKN guarantee, the exporter receives compensation for its costs if the customer cancelles the agreement. The lender receives compensation if the borrower does not repay the loan. EKN can cover both small and large scale transactions with this guarantee.
The guarantee for loss on production and loss on claim, with both exporter and bank as guarantee holders, covers both the exporter’s accumulated costs that cannot be invoiced because the buyer has cancelled the agreement and also the bank’s risk that the borrower abroad does not repay what is owed according to the loan agreement. This guarantee provides cover for events that occur from the date on which binding agreements exist for both the lender and the exporter.
Latest updated 30 Nov 2020