Obtain security for payments from your foreign customer
What we offer
Requirements for your business
How an L/C Guarantee works
You are negotiating an order in a foreign country, and you agree that the order will be paid as a letter of credit via your foreign customer's bank.
EKF can issue a guarantee for the letter of credit to your bank, if the bank hesitates. In doing so, we assume a part of your bank's risk of the customer's bank failing to pay.
With EKF´s backing , your own bank can immediately pay you when the terms of the lette of credit are fulfilled.
If the foreign bank does not transfer the money to your bank, EKF pays compensation.
How to get an L/C Guarantee
You want assurance that your will receive your payment from a foreign country
You are negotiating an order with a customer in a foreign country. You agree that the payment will be made as a letter of credit, according to which your customer's bank will transfer payment for the order to your bank when you have delivered.
Your bank requires a guarantee in order to be involved
Your bank is hesitant to be involved, as the letter of credit via the foreign bank may be associated with risk. The bank does not want to take the risk without assurance of receiving the payment from abroad. You contact EKF.
We run a credit rating check on your export transaction
You ask EKF to assume the bank's risk in the form of an L/C Guarantee. We run a credit rating check on the foreign bank to establish the extent of the risk, and we make a CSR assessment.
The paperwork
Once we have agreed to assume the risk, we send a few documents for your bank to fill out and sign.
Offer
We send the bank an offer setting out the coverage, price and conditions.
And we’re done
We then issue the L/C Guarantee, which covers up to 95 per cent of any loss incurred by your bank on the letter of credit. The guarantee gives you the security of payment for the goods you have delivered to your foreign customer.
