Working Capital Guarantees
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Maximize your working capital

EDC’s here to help Canadian companies access the funds they need to grow and succeed in international markets. 

We know that your financial institution may not be able to support all of the risks associated with your international growth plans. Our working capital guarantees are designed to take on some of the international risk that your financial institution would not be comfortable with alone. That means that they may be in a better position to offer you more favorable lending options to match your business needs, or free up your assets held in collateral. 

In short: EDC guarantees help maximize the working capital you can access through your financial institution.

Who is eligible?

EDC working capital guarantees are designed to support Canadian exporters facing financial challenges: Specifically, when your financial institution is unable to support increases in—or access to—your working capital, due to risks inherent in your international growth and activities.
 

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Our definition of an exporter is broader than you might think! 

We support Canadian companies: 

  • Currently selling—or planning to sell—goods or services abroad; 
  • Providing inputs to a global supply chain; and
  • Taking on their first export contract.

Ready to think about growing beyond Canada’s borders? Learn more about exporting

                     

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Scenarios where an EDC working capital guarantee can help your business

If your company is:

  • Taking on new international customers or global contracts, but facing a cash crunch between winning the business and getting paid.
  • Buying new equipment, or warehousing inventory closer to foreign buyers, but your operating line facility is maxed out.
  • Opening an international office or acquiring an affiliate, but your financial institution isn’t able to support growth through international assets. 
  • Using assets as collateral against a letter of guarantee, standby letter of credit or foreign exchange contract. 

If you recognize your business in one of these challenges, discover how one of our guarantees could help free up your working capital.

                  

                  

                  

About working capital guarantees

EDC working capital guarantees help share the risk your financial institution is able to take on related to your international business growth. This enables them to lend you more capital or release your assets that would, otherwise, be held as collateral. That’s cash put back to work for your business.

Diagram that shows how EDC working capital guarantees work. EDC provides a guarantee to the lender, the lender transfers their risk to EDC, and the lender can then provide credit to the exporter.

Need a larger operating line or a loan for international expansion? 

If you’ve maxed out your credit with your financial institution and need a bigger operating line or new loan, your banker may be able to leverage the Export Guarantee Program (EGP) or Trade Expansion Lending Program (TELP).

Assets held in collateral against a standby letter of credit?

If you need to provide your client with a standby letter   of credit or other trade finance instrument, and your bank is holding assets as collateral, an Account Performance Security Guarantee (APSG) can put that cash back in your account. 

Feeling the crunch of margining against your FX contract? 

If you have a foreign exchange (FX) contract with your financial institution and they’re holding your assets as collateral, a Foreign Exchange Facility Guarantee (FXG) can free up your pledged working capital.

                  

                  

The EDC Advantage

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We’re here to help you increase your international business presence. 

  • Our goal is to accelerate the growth of Canadian companies, boost their competitiveness and achieve success by going global. 
  • We understand the complexities of accessing the capital you need to take on international opportunities and grow your revenue—and have expert advice and solutions to support you.
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Working with EDC gives you a partner with international expertise. 

  • We offer international expertise to grow beyond Canada’s borders. 
  • We provide access to international business knowledge and networks. 
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We have an end-to-end suite of financial solutions to support your growth.

  • EDC credit insurance is available to all Canadian exporters, to alleviate the risks of customer payment default. 
  • Subject to eligibility criteria, EDC also offers various investment options, as well as Direct Lending in collaboration with partners, to fund your exponential growth.
  • Learn more about EDC’s full suite of financial solutions.

                  

Learn more

Get expert insights on how to manage and increase your working capital as you grow internationally.
 

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Key tips on how to optimize business financing from your bank.

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Export Help Hub

Our experts know what it takes to grow globally.

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Get financing to grow your business

When it comes to getting financial support to grow your business, preparation is key. Learn how with our webinar.

                  

                  

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Find out if our working capital guarantees are a match for your business

Talk to your financial institution to find out if an EDC working capital guarantee is a good fit for your financing needs.

Or, if you have an EDC relationship manager, reach out to have a conversation about how we can help increase your access to working capital.

FI account managers: Need support from EDC? Reach out to 1-800-229-0575 and we’ll help direct your inquiry.  

                  

Date modified: 2023-07-12