Combined guarantee

With the combined guarantee for loss on production and loss on claim, the exporter receives compensation for its costs if the customer cancels the agreement and the loan provider is compensated if the borrower fails to pay. EKN can cover both small- and large-scale transactions with this guarantee.

Transactions that can be guaranteed with EKN’s combined guarantee for loss on production and loss on claim

The guarantee for loss on production and loss on claim, with both exporter and bank as guarantee holders, covers 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 fails to make payments as per the loan agreement. The guarantee provides cover for events that occur from the date on which binding agreements exist for both the lender and the exporter.

The lender can also use the guarantee as collateral if they choose to have another bank or other credit institution refinance the transaction. In this case, the lender assigns the claim and the rights under guarantee to the refinancer.