Advance Payment
Under exceptional circumstances.
In exceptional cases, DALO may accept an advance payment. This typically arises for large procurements or acquisitions with long lead times where the supplier incurs substantial pre-delivery costs and payment would otherwise be due only on final delivery. DALO will only agree to an advance payment where doing so yields a materially lower price or materially earlier delivery.
On-demand Guarantee
DALO requires an on-demand guarantee from an approved third party covering the full amount of any advance payment. Acceptable guarantors are ordinarily major Danish or European banks or a financially strong group affiliated company. DALO’s Finance Department will assess the guarantor’s creditworthiness, including ratings and key financial ratios, and will consider the amount of the advance and the period from payment to delivery when determining acceptability.
If you are a small supplier or a start up and cannot obtain such a guarantee from a financial institution, you may contact The Export and Investment Fund of Denmark (EIFO), which may, subject to its terms, be able to provide support by guarantee, loan or similar instrument.