Free up your working capital with an Account Performance Security Guarantee

Issue letters of guarantee with your financial institution without putting up cash or freezing your credit line as collateral. We’ll provide your financial institution with a 100% risk transfer, giving them the comfort to issue letters of guarantee.

Unlock the collateral tied up by your letters of guarantee

Issuing letters of guarantee can put a significant strain on your balance sheet. Check out our free guide to learn how using an EDC Account Performance Security Guarantee eliminates the need to tie up your collateral, unlocking your full potential for future growth.

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Discover the Account Performance Security Guarantee

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How it works

  1. Get in touch with EDC to discuss an opportunity that requires a letter of guarantee.
  2. EDC works with you and your financial institution to set up an APSG.
  3. Upon approval, an APSG offer is issued to your financial institution, transferring the collateral requirement and risk to EDC.
  4. You now have more cash available to expand your business.

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What's covered?

100% coverage of eligible contractual and financial letters of guarantee including (but not limited to):

  • Bid
  • Advanced payment
  • Performance
  • Warranty
  • Lease
  • Supplier
  • Regulatory

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Eligibility

Eligibility determined by EDC based on requirements, including:

  • The managerial, technical and financial capabilities of your company
  • Review of the letter of guarantee
  • Conditions and economic outlook in your customer’s country, and the customer’s profile



Benefits of an APSG

        

Increase business volumes

Having a pre-approved facility, coupled with unfettered access to your cash and working capital, means you can invest those dollars in other areas to grow your business. 

Negotiate better supplier terms

With a supplier guarantee in place, you can negotiate open account terms and a more favourable payment schedule, which can help improve your business cash flow cycle.

Protect profit margins

Having a predefined rate means you can price contracts accordingly, allowing you to anticipate costs and protect your profit margins.

Manage working capital

An APSG supports advance payment guarantees, enabling more flexible customer payment schedules to better manage your liquidity.

Decrease bid response times

Having a predefined facility means your administrative burden is reduced, giving you the agility to react to bids quickly. 

Enhance creditworthiness

Respond to your customers’ letter of guarantee requirements quickly and easily, enhancing your creditworthiness and your ability to deliver on their projects.

        


 

     

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Account PSGs are now integral and essential to our operations. Without them, the collateral demands on our working capital would significantly limit our ability to manage and grow our export-led business.

Andrew Treble  —  CFOCanadian Hydro Components


 

Get in touch with our experts

Talk to us about how you can unlock the collateral tied up by your letters of guarantee.

Reach out to EDC to learn how we can work with you and your financial institution to maximize your access to working capital. Have questions about our offering? Send us a question or call us at 1-800-229-0575 weekdays between 9 a.m. and 6 p.m. ET.



EDC Trade Advisor
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