Export Development Canada (EDC) announced today a CAD 1.9 M loan guarantee for Vancouver-based company Colton International.
Colton International, a wholesaler of Italian name-brand clothing, used EDC’s Export Guarantee Program (EGP) to help secure the financing it needed to support its sales to the U.S. and Asia.
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 gives to an exporter will be repaid (EDC can guarantee up to 100 per cent of the 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.
“It gave us a chance to go out and find new customers,” said company president Howard Colton. “It’s allowed us to open up in different markets with smaller clients.”
“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 equipment to take on new orders, or support for international investments,” Lavery added.
Read more about how Colton International is expanding through exports at Exportwise.ca.
EDC is Canada’s trade finance agency dedicated to helping Canadian businesses grow by selling outside of Canada.
EDC provides commercial financing, insurance and bonding products to Canadian companies and their foreign customers to make it easier for both parties to do business with each other and to help grow Canadian trade overall.
