Danske Bank can assist with financing of capital goods exports and related services from the Nordic region (Denmark, Sweden, Norway and Finland). It is generally a requirement that the buyer's bank or another acceptable bank guarantees the buyer's payment obligation.
In order to provide financing for as many exporters as possible and make the financing as inexpensive as possible, we often take out guarantees from export credit agencies. The purpose of these organisations (listed on the right) is to support Nordic exports by issuing guarantees for export financing at favourable prices.
The issuance of such guarantees is subject to certain general conditions set forth by the OECD. These are the most important:
- The sale must involve capital goods or related services
- The buyer must pay at least 15% of the contract amount in advance
- While 85% of the contract amount may be export-financed, the guarantee may also cover certain expenses for establishing the financing, such as the guarantee premium paid to an export credit agency
- The maximum period between instalments is six months
- The portion of the export from the exporter's home country must be at least 20%-50%, depending on the buyer's country and the export credit agency involved
- The local part of the contract must be covered by the down payment