Asset Backed Finance – leasing and hire purchase
Grow without carrying all the risk yourself. With Asset Backed Finance, SEK shares the risk with you through financing secured by the underlying asset. Together, this creates a partnership that frees up capital and gives room for more business and continued international growth.
What is Asset Backed Finance?
A financing solution where SEK finances leasing or hire-purchase agreements with the financed asset as security. You can offer competitive financing to your customers while risk and capital commitment are shared between you and SEK. The setup applies to an ongoing volume of agreements, not a single financing of one machine or one vehicle.
When is Asset Backed Finance relevant?
It's relevant when you sell capital-intensive products and want to offer your customers attractive financing, without tying up more of your own capital or increasing your risk level. The solution is built on financing multiple agreements over time, as part of a portfolio at SEK. It is not a way to finance a single machine or a single vehicle.
Manufacturers of capital goods
Regularly sell machinery, vehicles, industrial systems or other equipment with clear resale value.
Exporters offering leasing or hire purchase
Offering these setups to international customers.
Companies with a captive finance company
That want to transfer part of the credit risk while keeping the customer relationship.
Companies growing internationally
Into new markets with a balanced risk profile.
How it works
The solution is structured to fit the deal. All setups share one condition: they require financing across multiple agreements, rather than a single deal. Three common setups:
01 – Via the exporter’s finance company
Your finance company finances the end customer. SEK acquires the right to payments from selected agreements in your portfolio, moving part of the credit risk to SEK while you own the customer relationship.
02 – Guarantee from the exporter
SEK finances the end customer directly with the asset as security for selected agreements, while you provide a guarantee for part of the risk.
03 – First Loss Pool
For larger volumes, a risk buffer covers the first credit losses while SEK provides the remaining financing. Capital-efficient across a portfolio of deals.
Benefits of Asset Backed Finance
Unlike traditional financing, Asset Backed Finance is built on security in the underlying asset and on shared risk, with a stable, state-owned financing partner at your side.
A partnership for long-term growth
Whatever the setup, the goal is the same: to strengthen Swedish exporters’ ability to offer competitive financing, free up capital for new business and enable sustainable international growth through smart risk-sharing and asset-based financing.
Do you want to know more?
Contact Working Capital Solutions, at SEK
FAQ
Can companies with their own finance companies use Asset Backed Finance?
Yes. SEK can acquire specific financing agreements or parts of an exposure, enabling finance companies to free up capital and optimise their risk profile.
What are the benefits for the exporter?
The exporter can free up capital, share credit risk, improve cash flow and create capacity for additional export business.
What is the difference between leasing and an instalment purchase?
With leasing, the customer uses the asset in exchange for regular payments. With an instalment purchase, the customer pays for the asset over time and will typically become the owner once all payments have been made.