Export credits
Swedish exporters can strengthen their competitiveness by offering financing to international customers in connection with the purchase of their products or services. SEK offers export credits at both fixed and floating interest rates.
Export credits typically involve three parties:
- SEK, which provides the financing
- EKN, which insures the exporter against the risk of non-payment
- Commercial banks, which structure the transaction and assume the portion of the risk not covered by EKN
How to offer your customer fixed-rate financing (CIRR)
As an exporter, you can offer your customer a fixed-rate financing offer (CIRR) which, subject to SEK’s approval, can be valid for up to 12 months. During this period, the financial contract between the borrower and the arranging bank must be signed. It is also possible to lock in the interest rate at the time the financial contract is signed.
A fixed interest rate provides predictability for both the exporter and the customer. If market interest rates rise during the negotiation period, a CIRR offer can become particularly attractive and help strengthen the exporter’s chances of winning the deal. If interest rates instead fall, the customer may choose to finance at a market rate.
In addition to the CIRR rate, EKN’s premium as well as the banks’ margins and fees apply. In some cases, a markup above the published CIRR levels may be applied.
Apply for export credit financing
A CIRR application must be submitted before an interest rate can be reserved and well in advance of the financial contract being signed between the borrower and the arranging bank. Applications can be submitted by either exporters or banks. The application is free of charge, and no costs apply if you ultimately decide not to use CIRR.
Unless otherwise agreed, offers of floating-rate or fixed-rate CIRR financing are governed by SEK’s General Terms.
Read more in the General Conditions about the Swedish export credit system.
Read more about the Swedish export credit system.