EDC — Account Performance Security Guarantee

📋 Eligible Entities - Canadian exporters and businesses engaged in international trade - Small to medium-sized enterprises (SMEs) - Large corporations with export operations - Businesses requiring performance bonds, bid bonds, or advance payment guarantees for international contracts - Companies working with foreign buyers or governments - Businesses need not be EDC clients beforehand, though existing relationships may streamline approval ### 💰 Funding Details - Coverage Type: 100% guarantee of performance and bid bonds posted by your bank - Cost Structure: Fee-based service (charges apply based on bond type, amount, and risk assessment) - Repayability: Not a grant or loan—this is a guarantee facility; you pay fees to EDC, not principal repayment - Collateral Requirements: Eliminates need to post cash collateral or pledge company assets to your bank - Cash Flow Impact: Frees up working capital that would otherwise be tied up as security deposits - No matching requirement: Stand-alone guarantee product; no cost-sharing obligation ### 🛠️ Approved Expenses - Performance bonds – guarantees you'll complete contracted work for international buyers - Bid bonds – covers the cost of bidding on international contracts and tenders - Advance payment guarantees – protects foreign buyers when they prepay for goods or services - Tender bonds – facilitates participation in international government and commercial tenders - Other trade finance guarantees – custom structures for specific export transaction needs ### ⚠️ Conditions & Milestones - Underwriting Process: EDC conducts credit and risk assessment; approval not automatic - Bank Relationship: Bond must be issued through your Canadian financial institution - Contract Requirements: Must be tied to a genuine international commercial or government contract - Fee Payment: Ongoing fees required; non-refundable if guarantee is not claimed - Claim Timeline: If you default on the underlying contract, bank claims against the guarantee per terms - Ongoing Compliance: Must maintain contract performance standards; EDC may audit progress - Term Duration: Typically matches the duration of the underlying export contract (varies by transaction) - Limits: Coverage is