The Buyer Financing program is organized by Export Development Canada. EDC provides financing directly to a foreign buyer of Canadian goods and services and in these situations takes the risk of non-payment and disburses the funds directly to the company. Generally, financing is provided for up to 85 per cent of the value of the sale and with repayment terms ranging from two to ten years. Financing can either be a loan, line of credit or a guarantee to another financial institution. There is a maximum funding value of $100,000 for this program.
How Does it Work?
The exporter provides EDC with the export contract and credit information on its foreign buyer and EDC completes the credit review and approval process. And once the review is approved, the EDC issues a loan agreement to the buyer and alerts the exporter. The payment to the exporter is usually triggered by EDC’s receipt of a buyer-approved invoice and EDC holds responsibility for collecting payment from the buyer and administering the loan.
Eligible parties include small to medium sized Canadian exporters and interested parties should consult EDC’s Buyer Financing page or contact Mentor Works directly for more information about this program and future support when applying. And be sure to check out other valuable government funding related to exports, such as Export Market Access ($30,000 grant) and the Ontario Exporters Fund ($50,000 grant).