Export Development Canada (EDC) today announced two loan guarantees totaling CAD 850 K for Buddy’s Kitchen, an Aurora, Ontario-based manufacturer of gourmet pet food and treats.
The company used EDC’s Export Guarantee Program (EGP) to help secure the financing needed to purchase machinery and equipment for its new, 22,000 square foot, state-of-the-art facility in Aurora.
The new financing will help accommodate Buddy’s Kitchen’s rapid growth. The company’s revenue increased from CAD 735 K in 2011 to CAD 5.1 M in 2015, largely on the strength of exports that now account for 80 per cent of sales. The new machinery will help the company meet increasing demand from its international customers.
In addition to the EGP, EDC also leveraged its corporate network to introduce Buddy’s Kitchen to a potential major buyer in the U.S.
The EGP is a flexible, risk-sharing guarantee that EDC provides to the bank of an exporter. It assures the bank that a percentage of a loan it provides to an exporter will be repaid (EDC can guarantee up to100 per cent of a loan).
With EDC sharing the risk, Canadian banks are often more willing to lend larger amounts to Canadian companies for their international business. This is especially important for small- to medium-size enterprises (SMEs) that need working capital to grow and meet the demands of new orders.
“EDC’s guarantee to our bank allowed us to invest significantly in innovation, capacity, and quality assurance,” says Peter Kaufman, CEO of Buddy’s Kitchen. “Not only will this help increase our exports to the US, our primary market, but also to the EU, Asia, and Australia.”
“This program is a difference maker for SMEs because it provides that extra boost they need to grow,” said Mairead Lavery, Senior Vice-President, Business Development, EDC.
“The EGP can be tailored to suit the needs of smaller companies, whether that’s getting financing to break into new markets, money to purchase new equipment to take on new orders, or support for international investments,” added Lavery.
Read more about how Buddy’s Kitchen is expanding through exports at Exportwise.
About Buddy's Kitchen
Buddy’s Kitchen sets itself apart from the competition with fresh ingredients, innovative production methods, and a sincere passion for the health of your pets. Buddy’s Kitchen has successfully created a process that allows pet owners to safely and conveniently feed home-cooked food without mess, and with confidence that the food is nutritionally complete and balanced for your furry family member.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians.
For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.