For International banks

Several of EKN´s guarantees are offered to banks. The most widely used guarantees insure payments in export credits, but we also offer solutions for contract guarantees, discounted bills of exchange and confirmed letters of credit.

Collaborate with EKN and offer your customers better terms

The most common guarantee used by banks, is the Buyer Credit Guarantee. In export transactions involving large contracts and buyers requiring long repayment periods, a common form of financing is with a buyer’s credit. A bank, or a group of banks, arranges and administers a loan to the buyer in the export contract.

The Buyer Credit Guarantee provides cover for non-payment by the borrower under a credit agreement. When the borrower is a sovereign the cover is 100%. SEK, The Swedish Export Credit Corporation, can provide funding, and also sometimes assume the role as arranger, usually jointly with one or more banks.

 

Benefits of EKN´s Buyer Credit Guarantee

  • The exporting company receives upfront payment and can still offer customers competitive financing.

  • The buyer receives access to attractive financing with long tenors. An export credit also diversifies the buyer’s loan portfolio, and reduces the use of bank credit limits.

  • The commercial bank minimises its exposure to risk and capital loss thanks to the EKN guarantee. The bank also gains access to attractive funding options with SEK, which improves their balance sheet.

  • With an EKN guarantee, the commercial bank can turn to SEK for optional funding of the loan. The loan is assigned to SEK together with the rights under the EKN guarantee. The loan is now on SEK’s balance sheet, while the bank retains the 5 % non-covered portion, if any.

Buyer Credit Guarantee

Guarantees for banks

Here you can find a guarantee that suits your needs. 

Find your guarantee

Web page last updated 28 Mar 2022