Buyer Financing

In many cases, a financial proposal is a critical part of your sale. We can provide financing directly to your foreign customer for an export sale of capital goods and/or services. This provides you with a cash sale because we assume the risk of non-payment, and disburse funds to you directly typically matching the payment terms in your commercial contract. Generally, we can provide financing for up to 85 per cent of the value of the sale and with repayment terms ranging from two to ten years.

Our financing can be in the form of a loan or a guarantee to another financial institution. As well, we can offer lines of credit.

Loans can be structured to offer flexible financing options for foreign buyers of Canadian goods and/or services.

Guarantees can be provided when another financial institution is prepared to participate in the financing of an export sale. We can work with them on a risk-sharing basis to provide a complete financing package to your buyer. We have also established a Bank Guarantee Program for financial institutions that provides competitive financing for foreign buyers in developing markets.

We have established lines of credit with foreign companies intending to buy repeatedly from Canadian companies, such as yours. We also have lines of credit with various foreign financial institutions worldwide that can on-lend money to buyers of Canadian goods and/or services. These bank lines of credit are particularly suitable for smaller transactions.

Qualification
We can provide financing to foreign buyers for purchases of capital goods and/or services from Canada which is typically financed over at least two years. We require financial information on the foreign buyer and other documentation.

Cost
We offer competitive rates to borrowers based on credit quality, general market conditions, and the length of repayment terms being considered. An exposure fee may be charged in connection with our export financing, consistent with OECD guidelines.

For guarantees, the foreign buyer will be charged interest and fees (if applicable) on the loan provided by the financial institution. EDC also charges a guarantee fee to the financial institution.

More Information
Brochure (PDF Format)
Call 1-866-283-2957 weekdays between 8 a.m. and 6 p.m. EST or submit an inquiry online
To start the process, your customer needs to complete our Financing Inquiry Form