How much funding can be received?

Issue letters of guarantee or standby letters of credit with your financial institution without putting up cash or freezing your credit line as collateral.

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The Account Performance Security Guarantee (APSG) facilitates the issuance of letters of guarantee to support contractual and financial commitments without requiring cash collateral. Eligible activities include guarantees for a variety of business undertakings, safeguarding resources for business expansion and financial operations.

Issuing bid guarantees to support participation in tenders.
Providing advance payment guarantees to secure financial transactions.
Facilitating performance guarantees to ensure contract fulfillment.
Offering warranty guarantees to cover potential product defects.
Setting up lease guarantees to back lease agreements.
Providing supplier guarantees to improve supplier terms.
Using regulatory guarantees to comply with legal requirements.

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$ 8,000

Implement lease guarantees for a technology startup

$ 20,000

Secure performance guarantees for a renewable energy project

$ 17,500

Apply supplier guarantees for a biotech firm

$ 24,000

Establish warranty guarantees for a manufacturing firm

$ 15,000

Implement advanced payment guarantees for an IT consulting firm

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Eligibility for the Account Performance Security Guarantee is determined based on several key factors related to the company and its activities.

The managerial, technical, and financial capabilities of the company are assessed by EDC.
A comprehensive review of the submitted letter of guarantee is required.
Consideration of conditions and the economic outlook in the customer's country, as well as the customer's profile, is necessary.

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The Account Performance Security Guarantee by EDC is targeted at Canadian businesses that need to issue letters of guarantee without tying up their working capital. Eligible applicants must have the managerial, technical, and financial capabilities evaluated by EDC, and meet conditions related to their customer’s country and profile.

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It seems that there are no specific types of companies mentioned in the grant context that are not eligible for the grant.

However, the eligibility for the Account Performance Security Guarantee is determined by EDC based on various requirements, including:

The managerial, technical, and financial capabilities of your company
Review of the letter of guarantee
Conditions and economic outlook in your customer’s country, and the customer’s profile

grant_eligibility_criteria|eligible_expenses

The eligible projects for the Account Performance Security Guarantee (APSG) primarily focus on facilitating businesses to issue letters of guarantee without tying up their cash reserves. This allows companies to maintain liquidity and foster growth in various business operations.

Issue of bid guarantees to secure tender operations.
Advanced payment guarantees for receiving upfront payments from clients.
Performance guarantees for ensuring delivery against contracts.
Warranty guarantees to support post-delivery obligations.
Lease guarantees related to equipment or property leases.
Supplier guarantees to facilitate procurement and supplier credit terms.
Regulatory guarantees required by government or regulatory bodies.

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There are evaluation and selection criteria for the Account Performance Security Guarantee:

The managerial, technical, and financial capabilities of the company
Review of the letter of guarantee
Conditions and economic outlook in the customer's country and the customer's profile

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Here are the steps to apply for the Account Performance Security Guarantee:

Step 1: Initial Contact
Reach out to Export Development Canada (EDC) to discuss the opportunity that requires a letter of guarantee.
Contact can be made by calling 1-800-229-0575 during business hours (9 a.m. to 6 p.m. ET) or by sending a question through the EDC website.
Step 2: Collaboration with Financial Institution
EDC works in conjunction with you and your financial institution to set up the Account Performance Security Guarantee (APSG).
Coordinate with your financial institution to ensure all necessary documentation and agreements are in place.
Step 3: Approval Process
EDC reviews the application based on your company's managerial, technical, and financial capabilities, as well as the letter of guarantee requirements.
EDC evaluates conditions and economic outlook in the customer’s country and profiles to determine eligibility.
Step 4: Issuance of Offer
Once approved, an APSG offer is issued to your financial institution.
This offer transfers the collateral requirement and risk to EDC.
Step 5: Access to Working Capital
With the APSG in place, you have access to more cash, allowing you to expand your business.

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Here are additional relevant details for this program:

The program allows businesses to issue letters of guarantee without using cash or credit lines as collateral by transferring risk to Export Development Canada (EDC).
It covers 100% of eligible contractual and financial letters of guarantee.
Businesses can potentially increase their business volumes and negotiate better supplier terms with this guarantee in place.
The guarantee supports advance payment guarantees, helping businesses manage working capital more efficiently.
The program can enhance a company's creditworthiness and improve bid response times by providing a predefined facility.

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1-800-229-0575

Apply to this program

Unlock Your Business Potential with APSG

Export Development Canada (EDC) offers the Account Performance Security Guarantee (APSG) to Canadian businesses, allowing them to free up working capital and issue letters of guarantee without tying up cash or credit. This financial tool empowers businesses to enhance their growth capabilities while maintaining operational liquidity.

Detailed Insights into the Account Performance Security Guarantee

The Account Performance Security Guarantee (APSG) by Export Development Canada (EDC) is a powerful financial instrument designed to facilitate the issuance of letters of guarantee without necessitating the freezing of your business's working capital or credit lines. By providing a 100% risk transfer to your financial institution, EDC makes it possible for Canadian companies to relax their collateral requirements, thereby unlocking a company's full potential for growth and operations.

One of the primary advantages of the APSG is its ability to significantly boost your business volumes. The program achieves this by ensuring that your cash and working capital are readily available for investment in other growth areas, thus facilitating expansion without the usual constraints associated with financial guarantees. This liquidity means that businesses can scale operations, enter new markets, or enhance their product and service offerings without being restrained by financial limitations.

Additionally, the APSG helps businesses negotiate better supplier terms. With the security of a supplier guarantee, companies can secure open account terms which may lead to more favorable payment schedules. Such flexibility can be crucial in improving a company's cash flow cycle, allowing for more precise and beneficial financial planning.

Regarding profit margins, businesses operating under an APSG can price contracts with a predefined rate, allowing for accurate anticipation of costs. This predictability means that there is less financial risk, as contracts can be priced in advance to protect margins from unforeseen changes or fluctuations, ensuring healthier financial outcomes.

The APSG also facilitates better management of working capital by supporting advance payment guarantees. This feature allows for more flexible customer payment schedules, which can be a crucial factor in managing liquidity and overall financial stability. Businesses can offer diverse and adaptable terms to their customers while maintaining robust cash flow, without compromising their financial structure.

With a predefined APSG facility, businesses can enjoy decreased bid response times. The administrative burden of acquiring a letter of guarantee is minimized, allowing companies to respond to tenders more rapidly and efficiently than before. Such agility can be a competitive advantage in securing new contracts and fostering business growth.

Finally, the APSG serves to enhance a business's creditworthiness by providing a framework that meets the guarantee requirements of clients without delay. This not only bolsters a company's reputation for reliability and capability but also increases its ability to deliver on projects promptly and effectively, thereby fortifying client relationships and potentially leading to recurrent business.

In summary, the Account Performance Security Guarantee is more than a financial tool; it's a strategic asset that supports Canadian businesses in overcoming barriers to growth. By collaborating with EDC, companies can maximize their working capital, enhance financial agility, secure advantageous credit terms, and ultimately achieve sustainable development across domestic and international markets.