EDC Advance Payment Insurance (CapEx)

Risk mitigation

Your customers are often asked to pay international and Canadian suppliers up front for capital and quasi-capital goods. You may be asked to provide a loan to cover those advance payments. If your customer insures those payments with EDC Advance Payment Insurance (CapEx), you have the extra comfort of knowing that 90% of those early payments are insured against a variety of commercial and political risks. You can also request that your customer asks EDC to implement a direction to pay that would allow your financial institution to receive claim payments directly from EDC.

COVID-19 update

We understand that Canadian businesses are producing and purchasing the materials needed to create personal protective equipment and COVID-19-related medical supplies, now more than ever. Effective immediately, we’re enhancing our solutions for new and existing clients and facilitating these kinds of purchases necessary in the fight against COVID-19. By working together, we can minimize the impact this crisis is having on Canadians. 

 

Why choose EDC Advance Payment Insurance (CapEx)?

Discover if EDC Advance Payment Insurance (CapEx) is right for your clients.
 

Coverage

Your custome can use EDC Advance Payment Insurance (CapEx) to insure their advance payments to suppliers, for up to 90% of financial losses resulting from risks, including:

  • supplier insolvency;
  • unlawfully broken contracts by the supplier;
  • lawfully broken contracts by your client;
  • currency conversion and transfer;
  • war and related disturbances; 
  • cancellation or expiration of required permits, licenses or approvals; and 
  • governments declaring moratorium on international debts. 

With customer consent, financial institutions can request to directly receive claim payments from EDC.
 

Eligibility

Any Canadian business that issues advance payments to international or domestic suppliers for the purchase of capital and quasi-capital goods.
 

Pricing

The premium is based on the duration of coverage and the credit profile of the supplier.
 

Find the right solution for your client


View all solutions

EDC Business Credit Availability Program (BCAP) Guarantee

Your customers need access to credit to overcome the financial challenges of COVID-19. You want to provide solutions, but what about the risks of non-payment? EDC can help share the risk with our new EDC BCAP Guarantee. This is a flexible, risk-sharing guarantee designed to give you the comfort you need to provide your customers with access to credit to cover their payroll and operational costs during the pandemic.

Export Guarantee Program

Your customer needs more financing, and you need to know your risks are covered. Our Export Guarantee Program is a flexible, senior-secured, risk-sharing guarantee that can give you the comfort you need to provide the additional financing they require.

EDC Credit Insurance

Your customer wants to borrow against their receivables, but you are concerned about the risk. EDC Credit Insurance allows you to include those receivables in their borrowing base or operating line because 90% of their losses are covered against a variety of commercial and political risks.

Have questions on our solutions for financial institutions?

Please contact your EDC account manager to learn more. If you do not have an EDC account manager, please call us at:

1-800-229-0575

Or send us an email and we’ll get back to you as soon as possible: bankchannel@edc.ca.