EDC — Credit Insurance
Highlights
This program is designed for you because it offers comprehensive credit insurance to protect your business against non-payment risks. If your customer fails to pay due to bankruptcy, contract cancellation, or other issues, 90% of your insured losses are covered. This means you can focus on growing your business without worrying about potential financial setbacks.
Key Benefits:
- Protection Against Non-Payment: Secure your accounts receivables and profits.
- Increased Cash Flow: Your financial institution will typically lend against your insured invoices for 90% of their value.
- Competitive Payment Terms: Offer better payment terms to win contracts without the risk.
Applying for this program is straightforward, and qualifying is easier than you might think. By securing your sales, you can confidently expand into new markets and take on larger contracts, knowing that your business is protected.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment term: Up to 10 years.
- Interest rates: Fixed at 3% per annum.
Eligible Expenses:
- Purchase of new or used equipment.
- Leasehold improvements.
- Working capital needs.
- Intangible assets such as patents and software.
Use of Funds:
- Funds cannot be used for personal expenses.
- Funds cannot be used for refinancing existing debts.
Fees:
- Application fee: $150.
- Annual administration fee: 1% of the outstanding loan balance.
Qualifications
- Must have total business annual sales within one of the following ranges:
- $1 - $499,000
- $500,000 - $999,999
- $1,000,000 - $9,999,999
- $10,000,000 - $49,999,999
- $50,000,000 - $299,999,999
- $300,000,000 and above
Must be currently invoicing a company outside of Canada, or:
- Have a new contract or an export plan with a company outside Canada
- Be invoicing a company in Canada for goods/services that are then resold outside of Canada
- Be investing in business opportunities outside Canada
Disqualifications:
- No current sales / Start-up
- Not currently invoicing a company outside Canada and no plans for export or investment outside Canada
Description
This program offers your business a valuable safety net. You can receive coverage for 90% of your insured losses if your customer doesn't pay. This includes risks like customer bankruptcy, contract cancellation, or issues with currency conversion.
Here’s how it benefits you:
- Protect Your Cash Flow: If a customer fails to pay, you still get 90% of the invoice amount. This ensures your business remains financially stable.
- Expand Safely: With this protection, you can offer more competitive payment terms to attract new clients without worrying about non-payment.
- Access More Financing: Banks are more likely to lend you money against insured invoices. This can significantly increase your access to cash, helping you grow your business.
This program is designed to help your business thrive, even in uncertain times.
Program Steps
Create an Account:
- Visit the program's website.
- Sign up for a MyEDC account if you do not already have one.
Log In:
- Use your credentials to log in to your MyEDC account.
Gather Required Documentation:
- Financial statements (e.g., balance sheets, income statements).
- Business plan.
- Details of intended use of funds (e.g., quotes for equipment or renovation costs).
- Proof of business registration.
- Tax returns for the past two years.
Complete the Online Application Form:
- Navigate to the application section.
- Fill out all required fields with accurate information about your business and the intended use of funds.
Upload Documentation:
- Attach the gathered documents to your application.
- Ensure all files are clear and legible.
Review and Submit:
- Double-check all entered information and uploaded documents.
- Submit the application through the online portal.
Follow Up:
- Monitor your email for any communication from the program administrators.
- Respond promptly to any requests for additional information or clarification.
Await Approval:
- The program administrators will review your application.
- You may be contacted for further details or an interview.
Receive Funds:
- Upon approval, discuss the final terms.
- The funds will be disbursed according to the agreed terms.