Credit insurance

Covers accounts receivable non-payment losses under an export contract for goods and services.

Coverage: Up to 90% of losses

Sub-products:

• EDC Select Credit Insurance: Up to CAD 500,000; online application; one-time premium paid upfront; up to 5 international buyers
• EDC Portfolio Credit Insurance: Premium paid monthly; one-time administration fee of CAD 250

Premium: Determined based on type of goods and services, creditworthiness of overseas buyer, and buyer country risk

Eligibility: Any Canadian exporter of goods or services  

Term: Up to 180 days

Contract frustration (single-buyer) insurance

Insures against political and commercial risks associated with a single, international contract

• Coverage: Up to 90% of losses
• Eligibility: Determined based on the value of the export, significant benefits to Canada, creditworthiness of overseas buyer, contractual terms, buyer country risk, and exporter’s experience with foreign sales  
• Premium: Calculated on payment terms, buyer and buyer country risks, and policy tenor

Political risk insurance

Covers expropriation, political violence, currency inconvertibility, and non-transfer and non-payment by a government counterparty

Coverage: Up to 90% of losses

Sub-products:

• Political risk of assets and/or investments
• Foreign funds (e.g. bank loans)
• Equity investment overseas
• Contract frustration of a sovereign buyer

Premium: Rates start at 0.1% per annum per risk

Buyer financing

Provide foreign buyers with flexible payment of Canadian exporter’s receivable

Exposure fee:

• Risk of buyer country, risk classification, exposure period (disbursement and repayment periods), and buyer credit rating
• Exposure fees paid by buyer upfront or capitalized
• Online exposure fee calculator

Fees: Administrative fee may apply

Project financing

Provides financing to buyers of Canadian exports

Large international infrastructure projects

Eligibility:

• The project must generate over CAD 50 million in sales
• Must demonstrate economic benefits to Canada

Bonding and guarantees

Cover losses while freeing up working capital since EDC does not require collateral

Coverage:

• Up to 100% to bank for losses due to wrongful calls
• Up to 95% to exporter for wrongful performance calls
• Up to 85% risk share of bond value with surety company

Sub-products:

• Account Performance Security Guarantee: Protects exporter’s bank
• Foreign Exchange Facility Guarantee: Allows FX provider to forego collateral because exporter can lock in FX rates
• Performance security insurance
• Surety bond insurance

Direct lending

Provides Canadian exporters with a direct loan to support international investments or fund an overseas affiliate. EDC takes security in foreign assets if lending to overseas affiliate Canadian Direct Investment Abroad(CDIA) program.

EDC Business Credit Availability Program (BCAP) Guarantee

The EDC BCAP Guarantee will provide your financial institution the peace of mind that they need to give your access to credit

Eligibility: 

The guarantee is for new operating lines of credit or new term loans to support your cash flow needs

The EDC BCAP is expanded to support more Canadian companies, regardless of size, sector or region

EDC fees related to this guarantee may be deterred for the first six months for smaller credit amount

Foreign Exchange Facility Guarantee

Protect against foreign exchange risk without locking up capital, and avoid posting collateral as payment assurance for foreign exchange contract provider and keep cash free for doing business

Eligibility: determined by EDC based on the manaerial, technical and financial capabilities of your company

Covered: foreign exchange derivative contracts, with a duration up to three years

COVID-19 support:

• EDC has adjusted the Foreign Exchange Facility Guarantee (FXG) to meet the current needs of Canadian businesses
• Until the end of 2021, EDC will be offering the solution to companies that do not export