Working capital credit guarantees for growth companies - Export Leap
The Export Leap is a working capital credit guarantee comprising a special investment in a company at an early stage of its growth journey. When a bank issues working capital credit guarantees of up to SEK 10 million in the form of loans, credit lines or overdraft facilities, or offers invoice factoring 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
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.
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.
Web page last updated 19 Sep 2022