Choose a country
Canada
Choose a city
Choose a city
Choose a language
English
Select country
Choose a country
Canada
Canada
España
México
Philippines
United States
Việt nam
Казахстан
Россия
Україна
Lender
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Export Development Canada

Finanso.Multilogin™

About lender

International trade is key to increasing sales and opening up new prospects, but taking on the world carries risks and many unknown factors for companies. Export Development Canada (EDC) was created to help Canadian companies take a step beyond their domestic market. It aims to help Canada play a more substantial role in international trade to create more jobs and promote domestic prosperity.

Its services include consulting, financing, equity investment, building connections with partners, and access to the international market.

The company was founded in 1944 and has assisted export transactions and foreign investment projects of Canadian companies worth over $1.5 trillion.

In respect of financing products, the company offers:

  • Buyer Financing;

  • International Financing Direct;

  • Structured and Project Finance

  • EDC Investment Matching Program

  • Inclusive Trade Investments Program.

The company also works with international trade guarantees, foreign exchange facilities, and surety bonds.

Pros and Cons

Pros

  • The company declares that it facilitates companies working in the international market, regardless of their size;

  • the company assumes the responsibility of collection from your customers (customer financing);

  • EDC carries out all credit checks on your customers;

  • You don't have to worry about the administrative part of extending credit to your customers;

  • Direct financing options are available for businesses with annual sales of $10 million or more;

  • This lender is more risk-averse compared to banks and works with multiple markets;

  • Flexibility in lending (to your company or directly to a foreign subsidiary);

  • Financing models are customized for each client;

  • Step-by-step guidance for international projects;

  • Support for women-owned businesses, including co-investor opportunities;

  • EDC Supports the Canadian market and its industrial sector and domestic service providers.

Disadvantages are everywhere, but they can be tolerable or so great that it is unpleasant to work with certain companies. However, for transparency, it is worth mentioning some aspects that could be considered a disadvantage of working with EDC Canada.

Cons

  • It is not clear whether a new company can count on collaboration to help it get started or whether it must wait until a specific revenue metric is reached;

  • There is no complete information about the documentation required from the company and its customers to obtain buyer financing;

  • It is not entirely clear how long the buyer's application and documentation will be considered for the loan disbursement.

Loans offered by EDC Canada have both advantages and disadvantages, but it is undoubtedly a financing alternative for exporters of goods and services. Benefits in this case mean:

  • flexibility in financing products;

  • the possibility to "outsource" financial issues with international customers of your own company;

  • no need to deal with collection issues when they arise with some payments for your products or services;

  • possibility to receive professional advice related to international business.

A disadvantage may be that little information is provided on the full eligibility criteria and funding approval, including how much time it takes and fees for services. One must submit an individual application to EDC to receive the detailed answers required.

Loan conditions

Financing external business contracts encourages foreign customers to buy Canadian products with convenient lending programs.

Buyer financing takes the following steps to arrange it:

  1. First, the company must provide the export contract and customer information so that EDC can verify financing eligibility in this particular case. Any new agreement will be considered a new loan and new approval. However, the details must be clarified directly with EDC.

  2. EDC will review the case;

  3. In case of a favorable decision for financing, EDC informs the seller and the buyer;

  4. EDC draws up a loan agreement;

  5. EDC controls the buyer's payments, and the seller receives the money once the buyer approves the invoice.

To access international direct financing products for Canadian businesses, an EDC client becomes a borrower and must not only submit documents but also meet several requirements, including:

  1. revenues must be between $10 million and $300 million;

  2. a development plan and strategy must be submitted.

EDC will provide more information on the required steps upon request.

Structured and project finance product is approved for each project separately.

EDC shall review the project, and it shall provide information on the list of documents required for review and approval.

EDC investment matching program offers a decision within ten business days unless more time is needed for a complex project.

It proceeds in the following steps:

  1. A client connects with a venture investor or private investor and advises that EDC is evaluating its suitability to participate in the project;

  2. EDC conducts a full review of the potential financial partner once the investor has agreed with EDC;

  3. EDC prepares a list of the required information and contacts you and your investor to obtain it;

  4. If everything is in order and the criteria are met, an approval decision can be made within ten days. However, it may take 4-8 weeks to complete the transaction.

There are several other funding opportunities, some of which are indirect loans offered by the Company. For example, EDC provides a special Inclusive Trade Investments Program (ITIP) for Canadian companies led or founded by leaders identified as women, Black, or other dimensions of diversity to break through barriers and challenges to international trade. This is neither a grant nor a loan but commercial financing at market rates.

  • This product will be made available to Canadian businesses that meet the above criteria or whose owners can be identified as women, blacks, people with disabilities, etc.;

  • Business revenue of up to C$500,000 and significant growth potential for the applicant business.

Companies wishing to take advantage of this product will be reviewed by the EDC team, including an overview of revenue, transaction duration, and export profile.

Further details will be provided after the application is submitted to EDC, providing information on the following:

  • company's business requirements;

  • exact challenges faced by the company (need to raise more money, ensure customers pay for products or services, currency fluctuations, need to pay advances to suppliers, need to access money in the market, cash flow issues, R&D capital issues, need to manage debt, need to find customers and build international trade, need for consulting services and more knowledge about international business issues, etc.)

  • company's business needs;

  • the range of sales (from $0 to $300,000 and above);

  • the number of years in the market, which can be as low as 0 for companies not yet established and over five years for companies;

  • the list of countries where your company intends to sell in the next two years;

  • your personal contact information and information about the ownership of the company.

EDC also offers indirect lending facilitation to Canadian companies working with external markets to promote the Canadian economy and its products abroad. Such financing solutions help solve cash flow problems by EDC issuing a guarantee:

  • Export Guarantee, i.e., a repayment guarantee offered to financial institutions that open up more opportunities for obtaining credit;

  • A foreign exchange facility guarantee helps mitigate the risks of exchange rate fluctuations;

  • Account security guarantee helps to get pre-approval from lenders and solve financial problems;

  • Surety bonds help obtain better terms in dealing with the surety provider.

For guaranties, companies must contact EDC Canada for information on each project's eligibility and a list of required documents.

Methods of loan funding

The methods of loan financing depend on the choice of product from the range of products offered by EDC.

Suppose it is direct financing of business under export contracts so you can be sure you will be paid for your product. In that case, EDC arranges for payment to the company account when your international customers have approved the invoices.

EDC takes care of receiving payment from international customers and, if necessary, collection procedures so that EDC's Canadian customers can be assured that their earnings are safe and not at risk.

The money is transferred to the customer's account. The time it takes to transfer the money and consider the loan application depends on the project's complexity. On average, the review and decision on availability can be made within ten days, and the deal can be closed within 4-8 weeks.

EDC guarantees allow customers to obtain loans from other lenders on the terms of the lending product. This must be cleared with the lender to whom you wish to present an EDC- issued guarantee.

FAQ

What is EDC?

EDC is Export Development Canada, Crown Corporation, established to help Canadian companies enter international markets, obtain funding, and advise them on practical international business issues (taxes, laws, finding customers, partners, etc.). 

It works with companies that are just beginning their journey or intend to forge their path in foreign markets, as well as those that have been operating for five or more years. 

EDC provides credit support, professional advice, and issues guarantees that help obtain financing from other lenders and consider projects as their investorы on commercial terms.

Who owns EDC?

EDC is a fully state-owned enterprise. It reports to the Minister of Small Business Export Promotion and International Trade. Its headquarters are located in Ottawa, Ontario, Canada.

How do you qualify for EDC?

First, it supports Canadian companies. Second, it helps companies that operate in the foreign market and want to promote the Canadian economy and Canadian products and services abroad. Third, depending on the product, EDC provides more specific eligibility criteria. If you are unsure which funding option is suitable, EDC recommends contacting them to obtain this information.

EDC supports start-ups and businesses still in the start-up phase, as well as companies with low and even 0 (start-up) revenue and over $300,000. In addition, there are special funding support opportunities for businesses started and/or run by women (people who self-identify as the above), Black people, people with disabilities, or LGBT people.

How much can you borrow from EDC?

This information is not publicly disclosed because each applicant and project makes loan funding decisions individually. In addition, when it comes to financing your buyers, your trading partners will be analyzed so that the deal can be approved. To get detailed information, you should contact EDC and provide details about your business, the requirements it has to meet on the way to the external market, information about your business and its sales volume, and your contact details. Every product for EDC's customers starts with this point of contact, and you can only get concrete figures.

Is EDC a legitimate company?

Yes, it is a legitimate business. It is owned by the government and is as safe and secure as the government of Canada.

Company documents

Privacy Policy
Legal

We use our unique trade knowledge and financial solutions to support and develop sustainable trade between Canada and the world, and to enhance Canada’s competitiveness in the international marketplace.

© Export Development Canada

What to pay attention to when applying for a loan from Export Development Canada

  1. The company must have a license if it runs business in Alberta, British Columbia, Manitoba, Ontario and Quebec.
  2. You can check the availability of the relevant license (copy) at the branch of the lending company.
  3. Membership in a self-regulatory organization (SRO) is an additional guarantee of the reliability of the lending company. This information can also be checked at the company's branch or on its official website.
  4. Availability of lending policies.
  5. The procedure for applying for a loan.
  6. The procedure for concluding the loan agreement and receiving the payment schedule.
  7. Other conditions for granting loans.

We recommend

  1. To check out the interest rates and frequency. 
  2. Check the availability of individual terms in the loan agreement (principal amount, term, date of advance, etc.).
  3. Check whether the loan agreement contains information about the total cost of borrowing.
  4. Take time to think – you can change your mind before agreeing or signing a loan agreement.
  5. Speed of loan processing.
  6. Accessibility – alternative lenders often operate where there are no bank branches.
  7. For the borrower - high interest on the loan.
  8. For an investor, the safety of funds is not guaranteed by the state.

What distinguishes Export Development Canada from banks:

  1. Simplicity - loan processing is less formalized than in a bank.
  2. Fast loan processing.
  3. Accessibility.
  4. For the borrower - high interest on the loan.
  5. For an investor, the safety of funds is not guaranteed by the state.
Your comment has been added
Error
Your complaint has been recorded
Invalid username or password
comment.alert.error-reg
Please log in to like/dislike
Invalid SMS code has been entered
All Export Development Canada’s reviews by September 2022
Leave feedback

Similar companies

Goeasy
33 City Centre Dr #510, Mississauga, ON L5B 2N5
1 844 446 3279
Kingcash
TD Canada Trust Tower, 161 Bay St. 27th Floor, Toronto, ON M5J 2S1
1-844-895-8808
Auto Loan Solutions
3200 Bloor Street West Toronto, ON M8X 1E1
1-800-610-2391
Driven
License No. 6482091
130 Adelaide St W, Suite 3100, Toronto, Ontario, Canada, M5H 3P5.
1-866-889-9412
Symple Loans
161 Bay Street, Suite 2700 Toronto, ON, M5J 2S1
1-888-479-2292