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Overview
EDC has teamed up Scotiabank to help companies transform export receivables into working capital. The program is called the Master Accounts Receivable Guarantee (MARG), and it uses the security of your customer’s foreign accounts receivable and an EDC guarantee, to increase their operating lines of credit. Who qualifies?
MARG was developed to help support small- and medium-sized Exporters with annual sales of up to CDN$10 million and, on an exception basis, an Exporter with sales up to CDN$25 million. However, there are some exceptions.
MARG was not developed for Exporters with large dollar value foreign receivables who do business with a only one or two customers. Neither is it appropriate for an exporter who sells only to a foreign affiliate nor a sole purpose company created to export to one country. What they get
Depending on how much export business your customer develops, you can help them obtain up to a CDN$500,000 or US$350,000 operating line through MARG. How it works
Fees are payable by the Bank, but can be passed on to your customer. They are assessed yearly, based on the risk rating determined by Scotiabank and calculated against the amount approved for the operating line of credit. Once the fee is paid no further reporting to EDC is required except at the time of annual renewal of the line. How to apply
The Exporter must first be approved through the Bank's Commercial Lending Process and then by EDC. Once the application is approved, funds are immediately available to them through their operating line of credit. EDC places 100% reliance on the Bank's credit granting criteria, and loan monitoring for this program.
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