EDC — Financement acheteur ### 📋 Eligible Entities - Canadian exporters and businesses selling goods or services internationally - Companies of all sizes (small, medium, and large enterprises) - Businesses in most sectors, excluding those in restricted industries - Both established companies and growing firms with export potential - Corporations, partnerships, and sole proprietorships engaged in export activities ### 💰 Funding Details - Loan guarantee provided by Export Development Canada (EDC) to reduce lender risk - Guarantee covers a percentage of the loan amount (typically up to 85% of losses) - Enables more favorable lending terms from financial institutions - No direct grant; financing arranged through partnered banks and lenders - Reduces the exporter's need for collateral or personal guarantees - Competitive interest rates based on lender terms and buyer credit risk - Repayment terms aligned with the buyer's payment schedule (flexible repayment options for international customers) ### 🛠️ Approved Expenses - Export sales financing — funding for goods or services sold to international buyers - Working capital — to support export operations and production capacity - Inventory and production costs — for fulfilling international orders - Terms financing — extending payment terms to international customers (90 days to several years) - Buyer credit arrangements — structured payment plans for foreign purchasers - Export-related operational costs — to enable competitive pricing and flexible payment options abroad ### ⚠️ Conditions & Milestones - Buyer qualification — the international buyer must be creditworthy and meet EDC standards - Export transaction requirement — financing tied to specific export sales or contracts - Lender partnership — must work through EDC-approved financial institutions - Documentation — must provide proof of export contract, buyer creditworthiness, and business fundamentals - Ongoing compliance — maintain good standing with the lending institution and EDC terms - Risk assessment — EDC evaluates both exporter and buyer risk before guarantee approval - Repayment obligations — exporter remains liable; guarantee only protects the lender from buyer default - Timeline — varies by transaction