Financing gave Skaltek competitive advantage
Skaltek is a company that has always gone its own way. Its own powerful vision permeates everything from product development to employee responsibility, and the markets to invest in. In order to invest in selected markets, the company has been working with EKN for many years, which with its guarantee for a loss on claims helps Skaltek to offer its customers competitive financing solutions.
Skaltek develops complete lines for packaging and handling of cables in just about all possible dimensions. Since its inception in 1973, the focus has been on achieving optimum quality.
Good competitive means
Öystein Skalleberg is the founder and CEO of Skaltek. He talks about how EKN comes into the picture:
“Many new customers in emerging markets - in our case this is primarily Brazil - are in the development phase of their businesses and may find it difficult to finance and earn money from their investments right away. We never compromise on quality, which means it is largely thanks to good financing terms that we can compete as successfully as we do.”
Quick and easy handling
Skaltek's bank contact Fredrik Holmqvist at SEB in Stockholm, comments:
“With EKN's guarantees we can help Skaltek to offer its customers excellent financing terms even in emerging markets. Skaltek has a guarantee framework that we call off on a running basis. It provides quick and easy handling for us at the bank, for Skaltek and for its customers.”
EKN takes 95 percent of the risk
In most cases, EKN takes up to 95 percent of the risk. With EKN's guarantee as security, SEB can give Skaltek “payment” for their deliveries immediately, and Skaltek's customers have time to receive payback on their investment.
“This makes it easier for everyone,” says Öystein.
One transaction becomes seven
Öystein gives an example of how this has worked in practice:
“We have a customer that manufactures cables in Brazil. When they started business they held off for a long time before choosing us as their supplier because we were not the cheapest. Thanks to a great financing package they went for it anyway and invested approximately four million kronor in a new packaging line. Since then, they have purchased an additional six lines as they have expanded. Customers have learnt they can count on Swedish quality if they get the opportunity to take advantage of it.”