“With EKN’s guarantees, we don’t have advance payments locked up in the bank”

Dockstavarvet builds aluminium boats – utility boats such as pilot vessels, patrol boats, combat vessels and working boats. Around 90 per cent of the yard’s turnover comes from exports and the customers are mainly public authorities in various parts of the world. They are secure customers with good financing, but advance payment guarantees give the yard better liquidity.

“The business was founded on building pilot boats to carry pilots out to sea-going vessels, and this is still an important part of the operation. But these days our biggest customers are public authorities that have problems with pirates, terrorists and drug smugglers,” says Anders Hellman, CEO of Dockstavarvet. “Apart from pilot boats, those who use our boats are mainly the military, coast guard, police and customs. In other words, our boats do a lot of good.”

Financing is no problem

“Up to now we have stood on our own two feet when it came to finance and we have had good advance payment terms with our customers abroad. In other words, financing has been no great problem, but everyone wants bank guarantees for the advance payments.”

Better for the money to work than to be locked up

“When we changed banks they set up an arrangement in which EKN guarantees 75 per cent of the advance payment guarantees. With the guarantee from EKN, the advance payment is released so that we can use the money instead of having it locked up, as with the previous bank. And of course better liquidity has a positive effect on our business.”

Good relations all the way

“There are very good relations between EKN, our bank and ourselves at Dockstavarvet. The case officers we have been in contact with over the years have worked very well and they are very service minded. I hope that this will continue.”

“We have worked successfully with rich countries, but now that we are looking at new markets in countries with poorer financing possibilities, such as Brazil and East Africa, we must look for new solutions. EKN’s support and financing will become even more important to us as we move forward.”