Benefits to the Bank:
- 100% unconditional and irrevocable guarantee to Scotiabank regardless of the call (including wrongful or uncontrollable calls);
- The Exporter's collateral held by the Bank is replaced with EDC's AAA-rated credit, thus giving you the ability to free up the Exporter's working capital;
- The Bank is not required to demand payment from the Exporter prior to submitting a payment request to EDC;
- EDC's risk is 0% risk weighted by most Banks; the Bank may not have to provision for reserves in relation to these transactions;
- Using EDC's PSG gives you the ability to help more customers, by having access to more capital;
- As the beneficiary of EDC's guarantee, the Bank is in control of all communication and correspondence with EDC, including submission of the PSG Payment Request (see Forms and Tools).
Benefits to the Exporter:
- Easier access to issuance of bank instruments;
- Access to additional working capital in order to assist completion of the project or other ongoing projects;
- The combination of the above gives the Exporter the ability to pursue more business in more markets – which also leads to more business for the Bank.
Account PSG - Pre-committed Capacity:
EDC can also provide one year of pre-committed PSG capacity to Scotiabank for eligible exporters. Canadian exporters issuing multiple export bank instruments yearly are good prospects for an Account PSG. These exporters should be financially and technically sound, must typically have straight forward contracts and bank instruments, and sell products standard to them.
Also Wrongful Call (called Performance Security Insurance):
This insurance, issued directly to the Exporter, covers up to 95% of losses if the buyer makes a demand against a bank instrument without reason. They are also covered if the buyer demands payment when things happen outside the seller's control such as war or cancellation of import/export permits. Our client can access this insurance online by becoming an EDC Direct customer. In order to become an EDC Direct customer, our client is required to contact its closest EDC Regional Office at 1-866-278-2300. 
