As of 1 April 2023, EKF has been merged into Denmark’s Export and Investment Fund (EIFO). The website will therefore be closed soon. Please note that some of the content of the website may be outdated. Instead, we refer to or our Customer Centre, phone no. +45 70 60 49 60.
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L/C Guarantee

Obtain security for payments from your foreign customer

An L/C guarantee is a payment guarantee from your foreign customer's bank. It is regarded as one of the safest methods of payment. With a letter of credit, your customer's bank undertakes to pay your bank who will then pay you. This means that your bank assumes the risk of the foreign bank defaulting on payment. With an L/C Guarantee, your bank's payment is assured. If the bank receives no payment from abroad, EKF pays compensation. This means that even risk-averse banks are able to participate in letter of credit transactions, and you can protect your export from loss.

What we offer

Assurance that your foreign customer can and will pay.
You receive your payment for the export order quickly, strengthening your cash flow.
The order cannot be cancelled or changed without your agreement.
You can accept orders from markets that you would otherwise be unwilling to venture into.
EKF assumes a part of your bank's risk and pays compensation if the bank incurs a loss.

Requirements for your business

The credit period may not exceed two years.
Your business must be conducted on an environmentally sound and socially responsible basis.
Your company must help to generate economic growth in Denmark.

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.

The process

How to get an L/C Guarantee

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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.

Ikon for risiko i EKF's rød og blå farve

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.

Ikon af kreditvurdering i EKF's rød og blå farve

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.

How we work with CSR

The paperwork

Once we have agreed to assume the risk, we send a few documents for your bank to fill out and sign.

Ikon for Købsaftale i EKF's rød og blå farve


We send the bank an offer setting out the coverage, price and conditions.

Mand i arbejdstøj på fragtskibsdæk.

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.

The small print and relevant documents

Contact an advisor
Underwriter Mikkel Gram-Jensen

Any questions about L/C Guarantees?

If so, call or write to Underwriter Mikkel Gram-Jensen on telephone +45 22 89 45 06 or e-mail

Does the L/C Guarantee not meet your needs?