EDC — Performance Security Insurance
Highlights
This program is a great opportunity for your business to protect its cash flow and confidently explore new markets. Performance Security Insurance covers 95% of your insured losses if a customer wrongfully calls a letter of guarantee or if political risks prevent you from meeting your obligations. This means you can take on new business without the fear of unexpected financial setbacks.
Key Benefits:
- Explore new markets: Deal with unfamiliar customers and markets with confidence.
- Better cash flow: Use your capital for growth instead of holding it in reserve.
- Lower costs: Minimize the impact on your liquidity if a letter of guarantee is called.
- Easier access to opportunities: Secure contracts by providing letters of guarantee confidently.
Qualifying for this program is straightforward, and being approved will give you the financial security to expand your business and take on new opportunities without hesitation.
Financing Details
Type of Financing: Loan
Repayment Terms:
- Interest rates are competitive and vary based on the market.
- Flexible repayment terms ranging from 1 to 10 years.
- Options for fixed or variable interest rates.
Eligible Expenses:
- Purchase of new or used equipment.
- Leasehold improvements.
- Working capital needs.
- Intangible assets such as patents and trademarks.
Ineligible Expenses:
- Real estate purchases.
- Refinancing existing debts.
- Personal expenses unrelated to business operations.
Fees:
- Application fee of $150.
- Annual administration fee of 1% of the outstanding loan balance.
- No prepayment penalties.
Qualifications
- Must have a letter of guarantee.
- Must be able to provide a review of the letter of guarantee.
- Must consider conditions and economic outlook in the customer’s country.
Must evaluate the customer’s profile.
Disqualifications:
- Amounts relating to unresolved commercial disputes between the customer and the counterparty.
Description
This program helps protect your business's cash flow. If a customer wrongfully calls a letter of guarantee, you can get 95% of your insured losses covered. This also applies if political risks prevent you from meeting your obligations.
Benefits to your business:
- Explore new markets confidently: You can deal with new customers in unfamiliar markets without worrying about the risks.
- Better cash flow: Use your capital for growth instead of holding it back in case a letter of guarantee is called.
- Lower costs: Reduce the impact on your liquidity if a letter of guarantee is called.
- Easier access to opportunities: Feel secure in providing letters of guarantee to secure contracts.
This insurance ensures you can focus on growing your business without the fear of financial setbacks from wrongful calls on letters of guarantee.
Program Steps
Gather Required Documentation:
- Customer Profile and Consent Form (PDF)
- Application for Single Transaction Support (PDF or Word)
- Guarantee Products and Other Insurance Declaration and Indemnity (PDF)
Complete Application Forms:
- Fill out the Customer Profile and Consent Form.
- Complete the Application for Single Transaction Support.
- Fill out the Guarantee Products and Other Insurance Declaration and Indemnity.
Review and Verify Information:
- Ensure all information provided in the forms is accurate and complete.
- Double-check that all necessary documents are included.
Submit Application:
- Send the completed application forms to [email protected] if this is your first application.
- If you are a current customer, send the completed form to your account manager.
Follow Up:
- Contact EDC at 1-800-229-0575 if you have any questions or need further assistance.
- Await confirmation and further instructions from EDC regarding your application status.