ENKOTEC, a company based in Skanderborg, makes use of SME Guarantees from the Export and Investment Fund of Denmark (EIFO) to ensure sales of fully automatic nail manufacturing systems to customers all over the world.

The nail manufacturing systems consist of both stand-alone systems and fully automatic production lines and often involve orders worth several million DKK. Being able to offer customers a financing solution can therefore help to close an order and ensure that the company gets paid immediately.

SME Guarantees being used actively

”For years, ENKOTEC has been using EIFO’s SME Guarantees which target Danish SMEs. We use SME Guarantees as an active part of our sales process because it makes it easier for the customer to obtain  financing without any significant risk for our company. At the same time, we get paid immediately which is a huge advantage,” says Gert Kjeldsen, ENKOTEC’s CEO.

ENKOTEC is currently covered by eight active SME Guarantees in five countries worth a total value of approximately DKK 60 million.

Buyer financing closed the deal

One of the those covered by the guarantees is a customer from Mexico with three guarantees worth DKK 45 million.

”Five years ago, our Mexican customer was looking for new systems for a growing market in the US. They showed interest in our systems because ours require less resources and offer higher yields. We managed to secure the order by offering a financing solution for the buyer in cooperation with EIFO,” says Gert Kjeldsen.

The customer returned

The guarantees from EIFO are also the reason why the customer returned last year to purchase additional production lines.

A good scheme supporting SMEs

”Without the SME Guarantees these orders would most likely not have materialised. We will therefore continue to make use of these guarantees in the future. This is a really important scheme which helps to support Danish SMEs in their exporting businesses,” says Gert Kjeldsen, ENKOTEC’s CEO.