Billions tied up unnecessarily in Norwegian companies!

As part of its offensive on the Norwegian market, Nordic Guarantee is launching the Tax Deduction Bond, enabling customers to enjoy a new source of finance.  

Pursuant to the Norwegian Tax Payment Act, all companies that pay salaries or pensions are required to ensure that the payment of tax (tax deducted at source) is guaranteed. Normally, tax money is deposited in a blocked account, a “tax withholding account”. The money in such accounts is held until it is paid out and can only be paid to the local accounting office (Kemnerkontoret). A tax deduction bond is equivalent to paying into a blocked account.

But the Tax Deduction Bond provides tax creditors with insurance in the event of a company being unable to pay their tax liability by the due date. This means that, thanks to Nordic Guarantee’s innovative solution, Norwegian companies can now release capital and let their tax money work for the business.

Only a few short weeks after its launch, the Tax Deduction Guarantee has already been receiving rave reviews from the market, and the outlook for 2012 is looking very favourable.

- Aside from the banks, we’re already the biggest provider of guarantees in Norway. With our Tax Deduction Guarantee, we’re positioning ourselves in direct competition with the banks in this area, and it’s a match I’m really looking forward to, says Andrea Möllerberg, COO at Nordic Guarantee. We must be easy to work with, responsive and price competitive with the banks. We don’t require collateral, which is a significant advantage that speeds up the process from application to final guarantee no end, continues Andrea Möllerberg.

Nordic Guarantee is investing heavily in the Norwegian market, and wants to expand even further, whilst also developing several new concepts that are currently being considered for launch in Norway.

- Our aim is crystal clear: We will protect our market leading position and compete with the banks by offering a significantly higher level of service and better terms to the contract guarantee segment, concludes Andrea Möllerberg.