Export Development Canada (EDC) today introduced its new online Portfolio Credit Insurance. The solution makes it faster and easier for Canadian companies selling abroad to protect against the risk of foreign buyers not paying for a product or service rendered. The new online portal will allow businesses to apply for insurance coverage, pay premiums, report overdue payments, submit claims, and speak directly with a dedicated support team.
As the first digital solution of its kind for EDC, the service can be used in real-time, 24 hours a day, seven days a week.
CEO Keith Thomas from Toronto’s Vive Crop Protection (Vive) recently had the opportunity to use the new product. He was looking to expand his business abroad and take on new international contracts, but was concerned about the prospect of not getting paid by potential foreign buyers. He used EDC’s automated platform and streamlined Portfolio Credit Insurance solution to get fast and flexible coverage for his emerging cleantech company.
With the insurance quickly in place, Vive could take on a contract with a major U.S. distributor without the worry of not getting paid. They were also able to leverage their newly insured receivables to secure additional working capital to expand production of their innovative green technology products.
“I was surprised at the simplicity of the insurance application process from start to finish, and of course it was a good result in the end,” says Mr. Thomas, who says his company is on track to grow its current revenue from $1 million to $18 million by 2020. “We have working capital needs when it comes to producing the product and shipping it off to different locations, so the ability to ensure timely payment makes it easier to plan for our business."
EDC is the leading provider of financing and insurance for Canadian companies that sell to customers outside of Canada. The new online Portfolio Credit Insurance solution is part of EDC’s broader effort to provide simple and affordable service options to exporters, which will give them greater flexibility and speed to respond to rapidly shifting market demands.
EDC’s research shows there are approximately 140,000 Canadian companies that are currently engaged in trade (directly or indirectly exporting or have international investment) or planning to export. About 76 per cent of the companies in the addressable market (approximately 107K) are considered to be “micro” in size (under $1 million in annual volume) and have huge untapped potential for growth.
“We’ve modernized our platform and simplified our products to provide real-time support to Canadian exporters where and when they expect it,” says Clive Witter, EDC’s Senior Vice-President of Insurance. “We recognize how fast the global economy is changing and how Canadian companies are evolving to keep pace and stay competitive; our goal is to find new and innovative ways to help them win.”
