Performance Security Guarantee
EDC’s Performance Security Guarantee (PSG) covers 100 per cent of losses incurred by your bank when a foreign customer makes a draw or call on a bonding instrument (an irrevocable letter of credit or letter of guarantee).For companies that frequently issue irrevocable letters of credit or letters of guarantee, EDC offers pre-committed PSG facilities, known as Account PSG (A-PSG).
Business Benefits
- Access to bonds: PSG gives your bank the assurance it needs to issue letters of guarantee or standby letters of credit on your behalf.
- Growth: PSG eliminates the need for you to put up additional working capital as collateral for bond posting. This leaves you with more cash to pursue export opportunities in new markets and expand your business globally.
- Total bonding solution: PSG is an effective complement to EDC’s Performance Security Insurance (PSI): PSG frees up working capital and PSI protects it against a wrongful call.
Details
Qualification Criteria
Cost
More information
Contact Us
Request more information about PSG or call 1-866-283-2957 weekdays between 8 a.m. and 6 p.m. EST.
Details
Once your signed PSG or A-PSG application is approved, EDC issues a letter of offer to the bank, specifying the coverage being guaranteed and the PSG fee. Upon receipt of the PSG fee and the bank's acceptance (which can paid to EDC by you or your bank), EDC issues an Effectiveness Notification to the bank, at which time the PSG is in effect.
Qualification Criteria
Before agreeing to provide cover, EDC assesses a number of factors, including:
- your managerial, technical and financial capabilities
- acceptable contract terms
- acceptable bonding or guarantee instruments
- the current conditions and economic outlook in your customer’s country, as well as your customer’s profile
- acceptable Canadian exports of goods and services, or other significant benefits to Canada
Cost
Pricing is based on a number of variables, including: policy liability, policy duration, exporter risks and contract-specific risk factors.
More information
Call 1-866-283-2957, weekdays between 8 a.m. to 6 p.m. EST.
Request more information
Coverage for Contract Bonds (PDF Format)
Checklist for EDC Bonding Support (PDF Format)
Application and Indemnity for Contract Frustration Insurance and Bonding Products (PDF Format)
Account Performance Security Guarantee: Questionnaire on Corporate Capabilities (PDF Format)
Account Performance Security Guarantee: Application and Indemnity (PDF Format)
Important Information
The foregoing information describes, in general, performance security guarantee available at EDC and is not a commitment to provide such a guarantee. Only the policy document provides the full extent, nature and specific characteristics of the coverage.
