Working Capital Guarantee requirements and conditions

What does EKF cover?

EKF can provide a guarantee of up to 80 per cent of the bank's risk of loss on the credit. However, EKF covers a maximum of 50 per cent of the bank's total loss on the company when all collateral has been realised and the final loss on the bank's total exposure to the company has been determined.

What does a Working Capital Guarantee cost?

EKF charges a premium for issuing a Working Capital Guarantee. Small and medium-sized enterprises (SMEs) pay a set premium, depending on the credit rating of the enterprise.

RATING MINIMUM PREMIUM P.A.

A             0.8%

BBB         1.2%

BB           2.0% 

B+           3.8%

B-            6.3%

You will also pay interest and costs to your bank for your credit. Your bank can give you the total price.

The premium for guarantees above DKK 25 million for SMEs and for guarantees for large enterprises is determined based on current market rates.

Who is eligible for a Working Capital Guarantee?

You are eligible for a Working Capital Guarantee if your company's export turnover amounts to a minimum of 20 per cent of the total turnover in your latest financial statements. Export also includes sales to Danish export companies or foreign tourists.

If your company does not currently fulfil this requirement, but is planning to increase exports, or if you have secured a specific export order, EKF will be able to assess whether a guarantee can be issued anyway.

How much does a Working Capital Guarantee cover?

There is no maximum or minimum amount.

What is the term of a Working Capital Guarantee?

An EKF Working Capital Guarantee provides cover for up to three years. After three years, the bank can apply for an extension. The guarantee may extend beyond three years, e.g. if it provides cover for a credit used for a specific order.

Environmental and social sustainability requirements

If the guarantee amounts to DKK 25 million or more, we assess your company's approach to the environment and human rights. To this end, EKF will contact you to gain an insight into the company.