Insuring international transactions

It is difficult to become a successful company without taking chances from time to time. But this does not mean you have to take unnecessary risks. An insurance solution from EIFO can protect you against unpleasant surprises.

image Photo: Protests in San Salvador, September 2021
Let EIFO help you venture safely into foreign markets

Sometimes international transactions do not proceed as planned. A customer may go bankrupt or cancel an order prematurely, war may break out or import bans and currency restrictions may be introduced. The Export and Investment Fund of Denmark (EIFO) can protect you against this type of risk so you can focus on your business without worries.

We can protect you against surprises and make sure you get your money when your international transactions do not proceed as planned.

Although the rules, regulations, and business culture in other parts of the world differ from what we know from Denmark and many countries are marked by financial and political uncertainties, we can make it safe to sell to foreign customers.

With a solution from EIFO, you are insured against economic risk if your customer cancels an agreement prematurely or goes bankrupt.

Or we can protect you against losses caused by political risks such as war or import bans and currency restrictions or if public authorities intervene against your export transaction.

Our insurance solutions can offer you financial security throughout the span of large projects which involve multiple part-deliveries. We can help you find the right solution for your company and your transactions.

An insurance solution from EIFO makes sure that

  • you will be compensated for your loss in case your customer suddenly goes bankrupt or cancels the order
  • you can accept new orders in spite of risk of war and political unrest in a country
  • you can focus on new business transactions rather than worrying about the risks related to previous transactions

Our insurance solutions

Contract Guarantee

The contract guarantee insures against loss if you have delivered part of a major project but are prevented from completing the project and receiving payment for it. The guarantee also covers your expenses pertaining to producing goods that you have not yet delivered, and your expenses related to having equipment and machinery dismantled and shipped back home.

For example, your company's deliveries may be impeded by unrest in the country during which an embargo is imposed on exports to the country or the country's authorities may impede the delivery. The guarantee also covers your loss if the foreign buyer is unable to or unwilling to pay for the delivery.

Other types of guarantees

EIFO has a range of guarantees, which can help to protect your international transactions against loss, e.g.

  • Bond guarantees that offers protection against significant loss, if the customer makes an unjustified call on your bond such as a bid bond, an advance payment bond or a performance bond
  • Investment guarantees, if you are going to invest or have invested in a subsidiary abroad and wish to be protected against loss caused by political instability in the country
  • An L/C guarantee is a payment guarantee from your foreign customer’s bank to your bank who will make sure you get paid

Contact EIFO for more information.