EDC is a federal Crown corporation that helps Canadian businesses manage the risks of international trade and access financing for export-related activities, including credit insurance, bonding, and direct financing.

EDC’s mandate is to support Canadian exporters and businesses with international growth ambitions. Its tools include accounts receivable insurance, which protects against non-payment by foreign customers; performance bonds and letters of guarantee for international contracts; and direct financing for buyers of Canadian goods and services. EDC can also co-lend alongside a chartered bank when the transaction has an export or international dimension.

For manufacturers, professional services firms, and technology companies with international revenue, EDC fills gaps that conventional Canadian banking does not address. A foreign customer who cannot or will not provide payment security, a new market entry that requires bonding, or a large international contract that strains the business’s working capital are scenarios EDC is specifically structured to support.

If a business has international revenue or growth ambitions, EDC is a financing tool worth understanding. See how Wefinx approaches Virtual CFO services.

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