SRTX gains access to more working capital with EDC.

EDC’s Account Performance Security Guarantee helps SRTX gain access to more working capital by freeing up collateral

SRTX is a Montreal-based company launched in 2017 that makes pantyhose from the world’s strongest polymer. The ultra-resilient tights, called Sheertex, are made from the same fibre as bulletproof vests and climbing equipment. 

Challenge: Freeing up working capital held as collateral 

When SRTX decided to expand its business, it needed: 

• a letter of guarantee to secure an electric connection from Hydro Quebec; 
• a lease bond for its landlord to build a customized facility; and 
• a supplier bond to obtain favorable credit terms from its supplier of raw materials.   

In each situation, SRTX’s bank required significant collateral to provide these guarantees, limiting its access to working capital.     

How EDC helped

Export Development Canada (EDC) worked with SRTX’s financial institution to implement an Account Performance Security Guarantee (APSG), to replace the collateral requirement on their letters of guarantees and bonds.  

Results 

The working capital freed up by leveraging APSG as a collateral replacement allowed SRTX to grow further in the United States and to expand its business to the European Union, United Kingdom and Australia.