EDC — Buyer financing
Last Update: January 24, 2025
Canada
Flexible financing for your international buyers
EDC — Buyer financing at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : November 14, 2019
Financing Type
Loans and Capital investments
Eligible Industries
- Manufacturing
- Wholesale trade
Grant Providers
- Export Development Canada (EDC)
- Government of Canada
Status
Open
Overview of the EDC — Buyer financing program
Get a loan guarantee to give your business a competitive edge and to reduce your risk of non-payment. Offer flexible repayment terms on loans for your international customers, covering their purchases from you.
Financing terms and conditions
This financing program from Export Development Canada provides comprehensive buyer financing solutions aimed at facilitating international trade of Canadian goods and services. The program is structured to enhance the purchasing power of international buyers through tailored financing options.
- Direct loans offered to international buyers by Export Development Canada.
- Loans provided in collaboration with approved financial institutions for expanded financing capabilities.
- Buyer Financing Guarantee, offering up to a 100% guarantee on 85% of a commercial contract to financial partners, for transactions not exceeding $25 million.
- Customized direct lending solutions for transactions of $25 million or more, catering to high-value international deals.
Eligible projects & activities
Examples of admissible projects:
$ 50,000
Launch a marketing campaign to boost the international presence of local organic products
$ 220,000
Expand manufacturing facilities to meet growing international demand
$ 150,000
Upgrade production equipment to enhance manufacturing efficiency and meet international demand
$ 70,000
Develop and launch a new e-commerce platform to expand international sales
$ 100,000
Upgrade IT infrastructure to enhance cybersecurity and data management for international clients
$ 130,000
Implement a renewable energy system to reduce manufacturing costs and environmental impact
Eligibility criteria of the EDC — Buyer financing program
Eligibility for the Buyer Financing program is determined by the assessment of several factors related to the international buyer and the transaction involved.
- The international buyer must be purchasing Canadian goods and services.
- The buyer's credit rating must meet specific criteria set by EDC.
- Transaction details must be within the guidelines, typically not exceeding $25 million for guaranteed transactions.
- Non-credit risks, including environmental, social, and governance practices, are considered in the eligibility assessment.
Who is eligible?
Unfortunately, the provided information does not specify the detailed evaluation and selection criteria or point scoring for projects under the Buyer Financing solutions from EDC. It focuses on eligibility and operational aspects.
Eligibility criteria of the EDC — Buyer financing program
EDC has specific criteria to evaluate and select businesses for Buyer Financing. Eligibility is based on factors like the customer's credit rating, transaction details, and other determinants. Contact EDC for detailed program criteria and assistance with Buyer Financing.
- Customer's credit rating
- Transaction details
- Other determining factors
How to apply to the EDC — Buyer financing program
1
Engage with EDC
- If you’re an existing customer, contact your EDC relationship manager to discuss potential Buyer Financing solutions.
- If you’re new to EDC, send a question through their web form or call EDC at 1-800-229-0575 to initiate the process.
2
Provide Necessary Documentation
- Submit a copy of your export contract that outlines the goods or services provided to the international buyer.
- Provide the credit information of the international buyer to EDC for assessment.
3
Assessment and Structuring
Work with EDC and your international buyer to determine the best financing structure tailored to the buyer’s needs.
4
Application Submission
After discussing with EDC and compiling necessary documentation and assessments, submit the formal application through the provided channels by EDC.
Additional information
Here are additional relevant details for this program:
- EDC's Buyer Financing can be utilized as a tool to enhance your bidding process by including financing options in the contract bid.
- By using Buyer Financing, Canadian exporters can receive payment upfront, significantly improving their cash flow.
- EDC provides a 100% guarantee on up to 85% of the commercial contract, enhancing security for both parties involved.
- The financing solutions offered align with the OECD's Consensus Arrangement, upholding international best practices.
Apply to this program
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