| |
Direct Loans
|
|
| |
|
| |
A direct loan is a financing agreement between EDC and the foreign buyer of Canadian capital goods and/or services.
|
| |
|
| |
What are the benefits?
- Canadian exporters can win more business by offering their buyers flexible financing and payment options;
- Foreign buyers can access loans directly from EDC or through one of EDC’s financial partners;
- EDC can lend funds in any major international currency;
- Transactions of all sizes can be considered.
|
| |
To find out more, contact us today. If you are a Canadian company, contact the EDC office nearest you at 1-866-376-3481.
|
| |
|
| |
How does it work?
- The time and process vary with the complexity of the sale or the loan. We strongly recommend contacting EDC as early as possible in order to be able to provide all parties with the best possible solution;
- With a direct loan, the Canadian exporter is paid up front for the sale and the buyer repays the loan to EDC;
- For transactions between USD 100,000 and 5 million, EDC may direct the financing transaction through one of our financial partners. For amounts less than USD 100,000 please refer to EDC’s Simplified Buyer Financing program.
|
| |
How do you qualify?
- EDC can lend to buyers of Canadian goods and/or services for transactions which demonstrate clear Canadian benefits;
- The buyer demonstrates a good financial track record: has been in business for at least two years, has a positive cash flow and a healthy balance sheet;
- To assess whether a financing proposal can be approved, EDC will require specific documentation.
|
| |
What is the cost?
- EDC offers competitive rates to borrowers based on the credit quality, general market conditions, and the length of repayment terms being considered;
- An exposure fee may be charged in connection with our export financing, consistent with OECD regulations;
- Additional factors may be considered.
|
| |
To find out more, contact us today. If you are a Canadian company, contact the EDC office nearest you at 1-866-376-3481.
|
