How much funding can be received?

There is no informations about how much funding can be received.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the EDC — Account Performance Security Guarantee?

EDC — Account Performance Security Guarantee is funded by Export Development Canada (EDC), Government of Canada

What are EDC — Account Performance Security Guarantee's eligibility criterias?

The managerial, technical, and financial capabilities of your company are assessed. The letter of guarantee is reviewed by EDC. Conditions and economic outlook in your customer’s country and the customer’s profile are considered.

EDC — Account Performance Security Guarantee

Last Update: January 24, 2025

Canada

Free up collateral held against a standby letter of credit

EDC — Account Performance Security Guarantee at a glance

Eligible Funding

No Condition

Timeline

Continuous Intakes

Financing Type

Other Support

Eligible Industries

All industries

Grant Providers

Export Development Canada (EDC)
Government of Canada

Status

Open

Overview of the EDC — Account Performance Security Guarantee program

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

Eligible projects & activities

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.

Examples of admissible projects:

$ 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

Eligibility criteria of the EDC — Account Performance Security Guarantee program

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.

Who is eligible?

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.

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.

Eligibility criteria of the EDC — Account Performance Security Guarantee program

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

How to apply to the EDC — Account Performance Security Guarantee program

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.

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.

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.

Issuance of Offer

Once approved, an APSG offer is issued to your financial institution.
This offer transfers the collateral requirement and risk to EDC.

Access to Working Capital

With the APSG in place, you have access to more cash, allowing you to expand your business.

Additional information

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.

Contact Export Development Canada (EDC)

1-800-229-0575

Apply to this program

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