About the product
What does the guarantee cover?
- Eksfin mitigates the risk that the exporter’s bank bears in relation to the buyer’s bank in an export case.
- Eksfin’s guarantee covers a portion of the loss the bank would incur if the buyer’s bank were to fail to pay the letter of credit amount/guaranteed amount on the due date.
- The guarantee can cover up to 50% of the bank’s risk.
In letter of credit transactions, the banks concern themselves with documents and not goods. If the associated goods do not satisfy the importer’s requirements with regard to quality, etc., the importer must take the matter up directly with the exporter.
How to apply?
Please start the process by filling in the application form, or contact one of our advisors.
How much does it cost?
Eksfin charges a premium upon issuing a guarantee.
The premium 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 risk of political unrest arising in foreign buyer’s country.