EKF ready to facilitate liquidity for several hundred Danish SMEs impacted by the corona crisis
Small and medium-sized enterprises can now contact their bank to request liquidity to tide them over during the corona crisis with an EKF guarantee. EKF's new liquidity guarantee scheme has just received EU approval and is ready for immediate uptake.
The new guarantee product is tailored to businesses affected by the coronavirus outbreak and will support the many Danish exporters facing liquidity problems as their earnings decrease while they still have to meet payroll, supplier and rent costs for example.
Last year, EKF assisted more than 700 Danish businesses with their exports. Eight in ten of EKF customers are SMEs. In 2019, EKF facilitated contracts for Danish exporters totalling DKK 15 billion and secured 7,200 jobs in Denmark.
“We are very pleased to now be able to roll out the new product and help businesses struggling under the coronavirus crisis. EKF is here to assist, and we will be using every conceivable means of supporting Danish exports and Danish exporters. I would urge all Danish exporters in need to contact their bank or EKF directly”, says EKF's CEO Kirstine Damkjær.
EKF expects to be able to come to the aid of several hundred Danish exporters during the crisis with the new guarantee scheme, which has initially been allocated DKK 1.25 billion.
Under its SME liquidity guarantee scheme, EKF covers 80 per cent of any loss incurred by the banks on new lines of credit extended to secure exporter liquidity. This will give the banks an added incentive to grant the needed liquidity that may be make-or-break for many SMEs.
Secure a loan in days
Once a bank has made an application with EKF it typically only takes EKF a few days to process it and issue a guarantee that enables the SME to secure a bank loan to cover its expenses.
Eligibility criteria for EKF's Liquidity Guarantee
What you need to do as a business
If you have suffered or expect to suffer loss of revenue as a result of the corona crisis, contact your bank to request liquidity covered by an EKF guarantee to tide you over during the crisis. It is your bank that has to apply to EKF for the guarantee. You are also welcome to call EKF to discuss your options before approaching your bank.
What you need to do as a corporate banking advisor
As a corporate banking advisor, you apply for a Liquidity Guarantee by the same channels usually used by the bank when applying for an EKF Working Capital Guarantee. If in doubt, please contact EKF.