EDC — Account Performance Security Guarantee ### 📋 Eligible Entities - Canadian exporters actively engaged in international trade - Small and medium-sized enterprises (SMEs) seeking to expand export activities - Corporations with established export operations or export potential - Sole proprietors and partnerships involved in exporting goods or services - Businesses requiring performance guarantees for international contracts - Companies without sufficient collateral or credit lines to secure traditional guarantees Note: Applicants must demonstrate creditworthiness and a viable export business model. ### 💰 Funding Details - No cash collateral required — EDC provides the guarantee backing - No credit line freeze — Preserve working capital and operational flexibility - Letters of Guarantee — Issued to support performance obligations - Standby Letters of Credit — Available for bid bonds, performance bonds, and advance payment guarantees - Coverage amount — Varies based on contract value and risk assessment - Non-repayable — This is a guarantee product, not a loan (no repayment obligation on the guarantee itself) - Fee structure — EDC charges a guarantee fee based on risk profile and coverage duration - Financing terms — Any underlying export financing may have separate repayment conditions ### 🛠️ Approved Expenses - Performance bonds — Guarantees for contract delivery obligations - Bid bonds — Guarantees for international tender participation - Advance payment guarantees — Protection for customer prepayments - Retention guarantees — Coverage for held-back contract funds - Export contract fulfillment — Any performance obligation tied to international sales agreements - Working capital support — Freeing up credit for operational needs while guarantee backs performance ### ⚠️ Conditions & Milestones - Export contract required — Must have a legitimate international sales agreement or tender opportunity - Credit assessment — EDC evaluates company financials, export experience, and contract viability - Customer creditworthiness check — Foreign buyer's ability to pay is assessed - Contract documentation — Detailed export agreement or bid documentation must be provided - Ongoing compliance