Account Performance Security Guarantee

An APSG allows you to issue letters of guarantee through your financial institution without needing to put up assets as collateral. EDC assumes 100% of your financial institution’s risk, allowing your lender to confidently issue guarantees while keeping your working capital available for other business needs.

An APSG provides a 100% unconditional, irrevocable, AAA-rated guarantee to your financial institution. If your letter of guarantee is called by the beneficiary, EDC will cover their claim within five business days.

An APSG can provide collateral replacement for contractual and financial letters of guarantee, including:

• bid bonds
• acquisition bonds
• advanced payment guarantees
• performance bonds
• warranty bonds
• lease bonds
• supplier guarantees
• regulatory guarantees

There is no cost to set up an APSG. You only incur costs when your lender draws on the facility to cover a letter of guarantee you need issued. The monthly rate is pre-set and agreed upon in advance. You only pay for what you use. This fee can be factored into your contract price, making the APSG a low-cost solution.

If your business is involved in M&A, EDC may be able to provide an APSG that covers a letter of guarantee securing a balance of sale (or acquisition bond). Contact us to learn more.