Export Guarantee Program

More working capital

Regardless of the size of your company, our Export Guarantee Program can help you get increased access to financing and is a cost-effective way to free up cash flow.

Our guarantee to your financial institution that your loans and other financing arrangements will be paid back may give them the confidence to provide additional support. That means you can complete current contracts with confidence, and still have the working capital to secure the next deal.

Built-in flexibility

The Export Guarantee Program can provide your financial institution with guarantees on financing for a variety of activities, including:

• work in progress and inventory related to export contracts;
• on-going working capital needs;
• the purchase of equipment;
• federal and provincial Research and Development Tax Credits (R&D) related to both your pre- and post-filing period. We can provide a partial guarantee to financial institutions that are willing to provide loans using the tax refund as collateral;
• investments outside of Canada and general working capital support for your foreign subsidiaries;
• foreign-domiciled inventory of finished goods for which you have legal title; and
• increasing your operating line of credit by margining of foreign accounts receivables.

The export guarantee coverage is typically 75% of the amount of the loan your financial institution provides, however higher coverage is possible for small loans or investments outside of Canada.

Qualification

Any Canadian company with export-related activities or foreign investments can inquire about this program. To qualify, your financial institution must be willing to establish a credit arrangement with your company and participate in the financing.

Costs

Costs are based on the associated risks, the duration of the guarantee and the amount of financing required.