EDC — Credit Insurance
Canada
Credit insurance against unpaid invoices
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Canada
- Export Development Canada (EDC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Protect your profits and get covered for 90% of your insured losses if a customer doesn’t pay.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$72,000
Open a community arts center to promote local artists and cultural activities
$67,500
Upgrade technology infrastructure to enhance operational efficiency and customer service
$90,000
Create a mobile health clinic to improve healthcare access in remote communities
$58,500
Establish a recycling program to reduce waste and promote environmental sustainability
$72,000
Launch an online education platform to provide accessible learning resources
$40,500
Develop a local organic farmers' market to support sustainable agriculture
grant_single_labels|admissibility
Short-term credit insurance is ideal for new or occasional exporters who are exploring new markets and relationships with a few customers. It offers fast and simple coverage exclusively online for transactions up to $500,000.
- You're a new or occasional exporter
- You're exploring new markets and relationships with a few customers
- You need fast and simple coverage exclusively online
- You need to insure transactions up to $500,000
grant_eligibility_criteria|who_can_apply
Companies that can apply for this grant are exporters. The grant offers two types of credit insurance: 1. Select Credit Insurance: Ideal for new or occasional exporters who need short-term coverage and want to insure transactions up to $500,000. 2. Portfolio Credit Insurance: Designed for active exporters with consistent sales who want ongoing coverage and the ability to insure an unlimited number of customers.
grant_single_labels|criteria
Short-term and portfolio credit insurance have different evaluation and selection criteria. Short-term coverage is ideal for new or occasional exporters with transactions up to $500,000, while portfolio credit insurance suits active exporters with consistent sales and the need for ongoing coverage.
- New or occasional exporter
- Transactions up to $500,000
- Exploring new markets
- Few customers
- Fast and simple coverage online
- Active exporter with consistent sales
- Insure an unlimited number of customers
- Flexible coverage with more policy options
- Cover pre-shipment costs in case of contract cancellation
grant_single_labels|register
Here are the general steps to apply for credit insurance:
- Step 1: Determine the Appropriate Insurance Plan (Select Plan/Portfolio Credit Insurance)
- Assess whether Select Credit Insurance or Portfolio Credit Insurance is more suitable for your business based on your export frequency, market exploration, and coverage needs.
- Step 2: Gather Necessary Information (Documentation)
- Collect details of the transactions you want to insure, including the amount, customer details, and any relevant contracts.
- Ensure you have financial statements or credit information if required.
- Step 3: Access Online Application Portal (Register/Login)
- Visit the insurance provider's website to access the online application portal.
- Create an account or log in if you already have an account.
- Step 4: Complete the Application Form (Fill Form)
- Fill in the necessary fields in the online application form with accurate details about your transactions and company information.
- Select the coverage details as per your determined needs from Step 1.
- Step 5: Submit Application (Submit)
- Review the information entered for accuracy.
- Submit your application through the online portal.
- Step 6: Confirmation of Submission (Receive Confirmation)
- Receive a confirmation email or message indicating that your application has been received.
- Keep this confirmation for your records and future reference.
Apply to this program
Flexible Credit Insurance Options for Canadian Exporters
Canadian exporters can access tailored support through flexible credit insurance solutions designed to meet diverse needs. These solutions offer both short-term and ongoing coverage to help businesses confidently engage in international trade.
In-depth Insights into Credit Insurance Solutions for Exporters
Export credit insurance plays a vital role in the Canadian export landscape by providing businesses with the confidence and security needed to explore and expand operations in international markets. For Canadian exporters, selecting the right credit insurance not only safeguards against potential non-payment from foreign clients but also enhances their ability to access better financing terms. This financial instrument is particularly crucial for small and medium-sized enterprises (SMEs) entering new markets, ensuring they have the necessary protection to mitigate risks associated with cross-border transactions.
The credit insurance solutions being offered cater to different needs of exporters. Select Credit Insurance is ideal for those who are new to exporting or involved in occasional cross-border transactions. This type of insurance provides short-term coverage and is best suited for businesses with sporadic or exploratory international sales activities. By leveraging Select Credit Insurance, companies can ensure their transactions, valued up to $500,000, are protected against unforeseen credit risks. This solution is designed for simplicity and quick online access, allowing businesses to obtain protection as and when required without cumbersome paperwork or long-term commitments.
On the other hand, Portfolio Credit Insurance is tailored for exporters with consistent sales and a need to insure a larger volume of transactions. This policy offers ongoing coverage and is highly flexible, enabling businesses to cover an unlimited number of customers. One of the significant advantages of Portfolio Credit Insurance is its ability to offer coverage that extends to pre-shipment costs, protecting exporters from the financial implications of contract cancellations. This feature can be crucial for businesses that invest heavily in preparing goods for export, ensuring that they are covered for losses incurred before the goods leave the country.
These credit insurance solutions not only protect exporters from potential financial losses due to non-payment but also facilitate smoother business operations by allowing firms to offer more competitive payment terms to their international clients. By extending longer credit terms, Canadian businesses can enhance their market competitiveness and foster stronger relationships with overseas partners.
Moreover, these policies are structured to be highly adaptable, catering to the unique needs of each business. Whether a company is looking to safeguard a handful of transactions or requires ongoing, comprehensive coverage across its international customer base, these credit insurance options provide the necessary flexibility and scalability. Businesses can adjust their coverage options as their export activities evolve, helping to maintain a robust growth trajectory.
In conclusion, these credit insurance solutions are an indispensable resource for Canadian exporters seeking to expand their international footprint prudently. By offering security against non-payment and facilitating better financing terms, they empower businesses to pursue growth opportunities in the global market with more confidence and less risk.
