EXPORT FINANCE

The possibility for a buyer to obtain financing can be decisive for his decision on where to place an order.

In general the possibilities to obtain financing for Danish exports are good, e.g. by making use of guarantees from the government-owned export credit agency The Export and Investment Fund of Denmark (EIFO). EKF’s risk capacity is higher than that of the commercial banks, which gives an edge in difficult markets in particular

Based on the size and characteristics of the commercial contract we are able to identify relevant financing structures and lenders. In dialogue with you we can then structure and arrange the optimal financing solution on terms and conditions that are attractive to you as well as to your customers.

Depending on the complexity of your contract, the scope of the loan agreement and – not least – due to compliance procedures and, in some cases, requirements for environmental impact assessment and other things, this can be a very time consuming process.

There are many options, and there is a big difference in requirements for documentation etc.

For large contracts you will often see a loan agreement in the form of a so-called buyer credit or a bank-to-bank credit.

For smaller contracts you can benefit from simpler structures, e.g. via letters of credit or bills of exchange. In any case, however, financing should be addressed in the very early stages of a contract negotiation in order to avoid delay at a later stage.

Regardless of the financing structure and the complexity, it takes resources and – not least – time to negotiate and conclude the right solutions. Solutions that meet your needs as well as the needs of your customers. Many stakeholders are involved, and a lot of negotiation has to be made. Leave it all to us, and instead you focus on executing the commercial contract.