This program is designed for businesses like yours to protect profits from foreign exchange risk without tying up your working capital. EDC’s Foreign Exchange Facility Guarantee (FXG) allows you to lock in exchange rates, ensuring your profit margins remain stable even with fluctuating currency rates. This means you can confidently price your products or services and improve the accuracy of your cash flow forecasts.

Key Benefits:

• No collateral required: Secure FX contracts without providing collateral, increasing your borrowing capacity.
• Improved cash flow management: Avoid unpredictable margin calls until the prearranged threshold is reached.
• Access to advanced FX tools: Book longer FX contracts (up to three years) and use sophisticated risk products.

Applying for this program is straightforward, and approval can significantly enhance your financial stability and growth potential. By managing foreign exchange risk effectively, you can focus on expanding your business with confidence.

Type of Financing: Loan

Repayment Terms and Interest Rates:

• Repayment Term: Up to 10 years.
• Interest Rates: Fixed interest rate of 3.5% per annum.

Eligible Expenses:

• Purchase of new or used equipment.
• Leasehold improvements.
• Intangible assets such as patents and trademarks.
• Working capital needs.

Ineligible Expenses:

• Real estate purchases.
• Refinancing existing debts.
• Personal expenses or non-business-related costs.

Fees:

• Application Fee: $100, non-refundable.
• Origination Fee: 1% of the loan amount, which can be financed as part of the loan.
• Annual Maintenance Fee: $50 per year for the duration of the loan.

This program offers a Foreign Exchange Facility Guarantee (FXG) to help your business manage foreign exchange risks. By locking in exchange rates, you can protect your profit margins without tying up your working capital.

Key benefits include:

• Protecting Profits: Lock in exchange rates to safeguard your profit margins from fluctuating currency values.
• Improving Cash Flow: You won't need to meet margin calls until the prearranged threshold of the guarantee is reached.
• Increasing Borrowing Capacity: Secure FX contracts without providing collateral, making it easier to get loans from financial institutions.
• Access to Advanced Tools: Use sophisticated FX hedging tools for up to three years, allowing for better risk management.

This program is designed to help your business grow by providing financial stability and flexibility in managing foreign exchange risks.