KGH releases capital by partnering with Nordic Guarantee
KGH Customs Services streamlines customs management and releases capital using a new guarantee and risk management solution.
Customs services provider KGH Customs Services, which has customers and offices throughout Europe, no longer needs to tie up capital for sureties and guarantees related to customs services and cross-border trade. By replacing bank guarantees with an insurance solution that frees up capital and credit facilities, KGH will secure even more favourable scope for expansion.
By partnering with Nordic Guarantee, which specialises in insurance-based contract guarantees (surety bonds), KGH Customs Services has discovered a modern and efficient solution to satisfy its guarantee requirements. In the past, KGH primarily used bank guarantees to meet its surety requirements but can now instead use insurance provided by Nordic Guarantee.
- Nordic Guarantee’s insurance solution has allowed us to free up credit facilities, giving the company greater scope for continued growth in Europe. The desire shown by Nordic Guarantee to find a good solution that precisely fitted KGH’s needs was a major factor in us choosing them as a collaboration partner, says Sandra Hermansson, CFO of KGH Customs Services.
Nordic Guarantee provides payment guarantees and advance payment sureties in the form of insurance, so called surety bonds. This solution gives the same level of protection as a bank guarantee, but requires no collateral to be put up or any capital to be committed. In addition, the administrative process is significantly smoother and, more often than not, much quicker. Many companies that have to make use of surety services are unaware that there is an alternative available to bank guarantees, even though the banks themselves are increasingly recommending that their customers utilise an insurance solution instead of a bank guarantee as it allows both the customer and the bank to use credit facilities in a more efficient way.
- The insurance solution provides a whole host of benefits that make it an attractive alternative, turning us into a natural partner that can play a significant role in increasing our customers’ competitiveness and potential for growth. It’s very satisfying to know that what we do helps companies such as KGH identify effective solutions for their guarantee requirements,” says Anders Wredfors, Region Manager at Nordic Guarantee.