Product

Production loan guarantee

Eksfin offers production loan guarantees to banks to assure liquidity for production costs for export-related contracts.

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About the product

Financing of production costs

Eksfin offers production loan guarantees to banks for loans granted to Norwegian export companies and/or sub-suppliers. The solution is most suitable for large individual contracts against solid counterparties where an ordinary overdraft cannot be used.

Eksfin can provide a production loan guarantee for contracts that satisfy the following conditions:

The contract must be an export contract or part of a sub-delivery of an export contract.
The contract must contain a satisfactory level of Norwegian value creation.

The contract must satisfy sustainability and anti-corruption requirements..

Conditions and structure

Eksfin’s guarantee normally covers up to 50% of the bank’s risk. Eksfin has the same conditions as the bank, which bears the risk for the share that Eksfin’s guarantee does not cover. The bank is responsible for establishing the actual loan/credit.

Generally, at least 30% of the contract’s content must be Norwegian, but a lower percentage of Norwegian content may qualify for financing upon assessment to determine whether the contract promotes Norwegian exports and value creation in a broader sense. Companies that will materially benefit from a production loan guarantee are not subject to any pre-defined requirements, but Eksfin will assess all risk elements in cooperation with the bank.