EDC — Account Performance Security Guarantee
grant_single|update January 24, 2025
Canada
Free up collateral held against a standby letter of credit
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Other Support
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Export Development Canada (EDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Issue letters of guarantee or standby letters of credit with your financial institution without putting up cash or freezing your credit line as collateral.
grant_single_labels|projects
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.
grant_single|admissibleProjectsExample
$ 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
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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.
grant_single_labels|criteria
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
grant_single_labels|apply
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.
grant_single_labels|otherInfo
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.
grant_single_labels|contact
1-800-229-0575
Apply to this program
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