Export Guarantee Program

Risk Sharing

     

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.

COVID-19

Like the fluctuating economy,
EDC’s solutions will continue to evolve.

To help you meet your clients’ need for increased flexibility, access to cash flow, and tailored solutions while they navigate the pandemic’s impact on their business, EDC has made temporary modifications to several of our products.

 

Why choose the Export Guarantee Program?

Discover if EDC’s Export Guarantee Program is right for your clients.
 

Coverage

For financing of domestic assets, guarantees can be up to 75%. Individual credit facilities may be guaranteed up to 90% if the guaranteed amount is less than $500,000 and the financial institution has other exposure with the customer. For financing of foreign assets, up to 100% coverage is possible for qualifying foreign assets.

When your customer wants more from their operating line of credit (such as an increase in facility limit, or consideration of other changes to terms), but the request is more than the financial institution is comfortable with, EDC can help. If your customer has a BB- credit rating or better, EDC will consider guaranteeing up to 75% of the total facility, if benefit to the customer is clear.

Eligibility

In situations involving non-Canadian assets, the customer should be a good credit risk within Canada. The foreign assets should be of a type that would be financed by your institution if they were in Canada. To qualify for Export Guarantee Program on a domestic operating line, an R&D-related loan, or a CAPEX loan not directly related to an export, your customer’s most recent consolidated year-end Foreign Business Sales must have been at least 15% of total consolidated sales. If the customer has not had any exports in the two years preceding the last 12 months, more information will be required.

Pricing

The Export Guarantee Program guarantee fee is a flat fee calculated on the guaranteed amount using an EDC risk-based pricing grid together with your institution’s estimate of the projected usage of the facility (for revolving lines). A setup fee of 25 basis points is applied to a guarantee greater than $500,000.

 

 

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.

EDC Business Credit Availability Program (BCAP) Guarantee—Mid-Market

You have a client who needs additional credit to manage the impact COVID-19 has had on their business. You want to provide solutions, but current economic risks make it difficult to offer traditional financing options. Share the risk with EDC by using the EDC Business Credit Availability Program (BCAP) Guarantee—Mid-Market. This risk-sharing guarantee gives you the comfort you need to provide clients with access to additional working capital to cover operating costs resulting from the pandemic.

Account Performance Security Guarantee

Your customer has bonding requirements in the form of standby letters of credit or letters of guarantee, but doesn’t want its cash reserve or credit line to be impacted by the collateral required to cover your risks. Our Account Performance Security Guarantee provides a 100% irrevocable and unconditional guarantee if the bonds are called, helping you meet your customers’ needs without squeezing their operating lines.

Foreign Exchange Facility Guarantee

Your customer wants to hedge foreign exchange risk, but doesn’t have the collateral you require to set up a foreign exchange facility. Our Foreign Exchange Facility Guarantee provides a 100% irrevocable and unconditional guarantee of the collateral security amount required for the settlement risk, helping you meet your customer’s needs without squeezing their operating line.

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.

EDC Advance Payment Insurance (CapEx)

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.

Have questions on our solutions for financial institutions?

Please contact us weekdays between 9 a.m. and 5 p.m. ET.

1-800-229-0575

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