In an increasingly integrated global economy, Canadian companies are discovering that investing abroad—for example, by setting up a local sales office or manufacturing facility in an international market—can be a strategic way to achieve their business goals. EDC Research Panel surveys* have found making foreign investments can result in more sales, lower costs, greater productivity, improved market penetration, better customer support and increased competitiveness.
Yet investing in international markets is complex. That’s why we’ve created the Canadian Direct Investment Abroad (CDIA) program, which offers a wide range of solutions to help you obtain financing and research international markets in support of your long-term business objectives.
I want to insure the receivables of my foreign affiliate or subsidiary
In many markets, our Accounts Receivable Insurance, which can cover your full book of business for up to 90 per cent of losses against such risks as a customer’s refusal of payment, can also be extended to your foreign affiliates—giving you insurance coverage anywhere you do business.
I need to post letter of guarantee for my foreign affiliate or subsidiary
If your foreign affiliate needs to post letter of guarantees such as bid bonds, advance payments bonds or suppliers bonds, your bank will usually want collateral. We can offer a 100 per cent irrevocable and unconditional guarantee via our Account Performance Security Guarantee to your financial institution that can satisfy this demand without tying up your working capital.
I need to post a bond for my foreign affiliate or subsidiary
Our Surety Bond Insurance offers your surety company protection against losses resulting from a call against your bond, encouraging it to provide you with the bonding capacity you need to support your international investments.
I’m concerned about the political situation in an international market
If you have equipment or facilities overseas, political risk is often a fact of life. With our Political Risk Insurance, you’re covered up to 90 per cent of losses resulting from expropriation, political violence and currency conversion and transfer risk.
I need access to a larger operating line but my bank needs extra assurance
Our Working Capital Financing shares the financial risk with your bank, giving it the confidence it needs to provide you with the financing required to break into new markets, increase production for a new order or support foreign investments.
I am mid-sized company with a strong business position in Canada, looking for support for a potential investment in foreign assets
If you are a mid-size company with a solid financial profile looking to invest internationally, we can consider, with the support of your financial institution, a direct loan to finance foreign assets under our Direct Lending solution.
In our experience, the transactional costs of doing small international loans (less than $1 million) typically outweigh the benefits. For these smaller transactions, solutions other than direct loans can be explored, such as our export guarantee, bonding, or insurance programs.
Our support will depend on the need and we will aim to fund a solution that is best for all parties including you and your bank.
I want to invest in new markets. What do I need to know?
Our Knowledge Centre has the information you need to plan your next business move, including insights into global trends, opportunities and risks. Access profiles of more than 170 countries as well as in-depth analysis from our trade experts and a library full of tips and best practices to help you grow your business.
The EDC Research Panel is comprised of about 1,000 Canadian businesses that export or plan to export, and comprise a cross-section of industry sectors, regions and business sizes. Not all panelists respond to all surveys.