Why you need EDC Advance Payment Insurance (CapEx)

Canadian companies are often asked to pay international and Canadian suppliers up front for capital and quasi-capital goods. When the supplier can’t fulfill their obligation and can’t return any advance payments made before shipping, EDC Advance Payment Insurance (CapEx) covers up to 90% of your financial losses.

Protect your money. Here’s what EDC Advance Payment Insurance (CapEx) covers:

You don’t receive the return of your advance payment because:

  • Your supplier becomes insolvent
  • Your supplier unlawfully breaks your contract
  • You lawfully end your contract 
  • Problems with currency conversion and transfer
  • War and related disturbances
  • Required permits, licences or approvals are cancelled or expire
  • Government declares a halt to paying international debts
  • Any instances where the supplier is related to the insured
  • Payments made after product has been shipped
  • Contracts which are more than one-third complete
  • Any amount that the buyer is entitled to hold back
  • Goods of unacceptable quality
  • Amounts from unresolved disputes
  • Issues resulting from incorrect documentation

EDC is dedicated to supporting Canadian businesses during the COVID-19 pandemic. We’ve adjusted EDC Advance Payment Insurance (CapEx) so that until Sept. 30, 2020, EDC will consider insuring advance payments made for personal protective equipment (PPE) and related COVID-19 medical supplies.

Questions about our financial solutions?

If you’re new to EDC, please contact us weekdays between 9 a.m. and 5 p.m. ET.


Or send us a question and we’ll get back to you as soon as possible. Send a question.

If you’re an existing customer, please contact your EDC account manager about any additional support you need.


EDC trade advisor