About the product
Protecting the exporter
A Pre-shipment guarantee protects the exporter against losses that may arise during the production period, before delivery, in the event contracts are not carried out or fulfilled by the buyer due to bankruptcy, insolvency or political events. The guarantee is most appropriate in cases where the item to be delivered is customised and therefore difficult to sell to other buyers than the original.
What can the guarantee cover?
Eksfin covers final losses, not profits. Eksfin will become a party to the claim against the buyer.
- The guarantee may apply to the foreign buyer’s inability or unwillingness to pay (commercial risk). Eksfin guarantees up to 90 per cent of the supplier’s own costs.
- The guarantee may apply to amendments to laws or to events in the buyer’s home country that make it impossible to carry out payment (political risk).
- The guarantee covers direct and indirect costs the exporter has incurred up until the breach of contract.
Who can apply?
The exporter submits the application to Eksfin.
How much does it cost?
Eksfin charges a premium upon issuing a guarantee.
The premium amount is determined on the basis of the repayment period, and is also affected by:
- Buyer’s creditworthiness: Eksfin assesses customer creditworthiness, i.e. the probability of repayment by the customer.
- Political conditions in the buyer’s country: Eksfin assesses the risk of political unrest arising in a foreign buyer’s country.