Looking for a solid backer – how about an entire nation?

A Buyer Credit Guarantee is a guarantee issued by EIFO to cover financing to foreign buyers of goods and services. With a Buyer Credit Guarantee from EIFO you can offer your customer financing with credit periods up to 8.5-10 years without risk while your company gets paid immediately.

The foreign buyer will normally have to prepay minimum 15 per cent of the order amount. A Buyer Credit Guarantee has no maximum limit and is used in connection with million-figure orders which are typically financed by a Danish or an international bank, for instance, in connection with infrastructure projects, hospitals and factories. EIFO covers up to 95 per cent of the loss and the bank’s deductible is therefore minimum 5 per cent.

The financing of new major projects such as wind farms, cement plants and solar projects are often structured as project finance where a group of banks and investors join forces to provide financing for a project.

This type of projects often involve greater risks than normally accepted by banks in connection with loans. The risks involved are, for instance, a long time frame, the scale of the project, the technology and the future possibilities of selling the goods or the production of the project.

This is where EIFO can step in with a Project Finance Guarantee which offers banks security for the guaranteed part of their loan to the project. This may help to increase the risk-tolerance and Danish export.

An Export Loan from EIFO is typically used in the same types of export transactions as when EIFO offers a guarantee for financing of foreign buyers and projects. The difference is that in case of an Export Loan, EIFO is the lender and not only the guarantor of a bank loan. EIFO can offer an export loan when it is necessary to mobilise other investors and lenders and hereby secure financing of transactions with Danish export content. The credit period for an export loan is minimum two years.