EDC-BDC Purchase Order Financing ### 📋 Eligible Entities - Canadian exporters and businesses with export contracts - Small and medium-sized enterprises (SMEs) - Established companies with proven export capacity - Businesses with confirmed purchase orders from international buyers - Corporations, partnerships, and sole proprietors engaged in export activities - Must have been in business for a minimum period (typically 2+ years) - Must demonstrate creditworthiness and ability to fulfill export contracts ### 💰 Funding Details - Financing Coverage: Up to 90% of the confirmed purchase order value - Loan Structure: Non-repayable advance against export contract revenue - Repayment Terms: Flexible repayment aligned with cash flow from international buyer payments - Interest Rates: Competitive rates set by EDC/BDC based on risk assessment - Disbursement: Direct payment to supplier or designated recipient - No Matching Requirement: 100% financing available (up to 90% of PO value) - Repayment Trigger: As you receive payment from your international customer ### 🛠️ Approved Expenses - Supplier payments for goods and inventory fulfilling the export purchase order - Raw materials and components required to complete international contracts - Direct production costs associated with fulfilling the export order - Inventory acquisition for export delivery - Freight and logistics costs embedded in fulfilling the PO - Any direct costs tied to fulfilling the confirmed international contract ### ⚠️ Conditions & Milestones - Must have a confirmed, signed purchase order from an international buyer - Purchase order must be from a creditworthy buyer (subject to EDC/BDC due diligence) - Applicant must demonstrate ability to fulfill the contract within specified timeframes - Funds must be used strictly to fulfill the documented export contract - Repayment begins upon receipt of payment from the international buyer - Full documentation of the purchase order and buyer details required - Regular reporting and contract fulfillment monitoring by EDC/BDC - Business must maintain good standing and comply with export regulations - May require security or guarantees depending on risk profile - Financing