Account Performance Security Guarantee
Issue letters of guarantee without tying up your capital.
Free up your working capital with an Account Performance Security Guarantee
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Discover the Account Performance Security Guarantee
How it works
- Get in touch with EDC to discuss an opportunity that requires a letter of guarantee.
- EDC works with you and your financial institution to set up an APSG.
- Upon approval, an APSG offer is issued to your financial institution, transferring the collateral requirement and risk to EDC.
- You now have more cash available to expand your business.
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
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 Account Performance Security Guarantee
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.
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.
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.
