Master Accounts Receivable Guarantee
With MARG you can use your foreign receivables to increase your operating line of credit up to a maximum of $500,000 or the US equivalent. EDC provides a guarantee to your financial institution to insure against a loss should you fail to repay your operating line.Business Benefits
- Reduced risk for your bank: MARG will guarantee 90 per cent of the lesser of the outstanding amount borrowed under the line of credit, or the eligible foreign accounts receivable.
- Access to capital: Your foreign accounts receivable can be used as security against which your bank may extend access to working capital.
- Increased sales: MARG allows you to maintain and attract new customers with better payment terms and credit options.
Coverage Details
Qualification Criteria
Cost
More information
Contact Us
To learn more about MARG, complete our contact us form or call 1-866-283-2957 weekdays between 8 a.m. and 6 p.m. EST.
Coverage Details
The risks covered by MARG include exporter’s failure to pay their operating lines secured by foreign accounts receivable. MARG can increase the availability of operating line financing to smaller exporters.
The product is generally designed to help Canadian exporters with annual sales of up to $10 million.
EDC will approve a MARG application within two business days.
Qualification Criteria
Canadian businesses that export goods or services with foreign accounts receivable.
All of your foreign accounts receivable with credit terms of up to 180 days, and not more than 150 days overdue, are eligible. The total amount cannot exceed 80 per cent of the normal value of your foreign accounts receivable.
The financial institution will obtain a signed declaration and consent form (PDF Format) from the customer at the time of application attesting that the foreign accounts receivable are for exports from Canada. This form will be required to be faxed with the application form (PDF Format) to EDC for processing.
Cost
MARG premium rates are calculated as a percentage of the total amount of the operating line requested based on the financial institution’s risk rating. The fees vary between $0.55 per $100 to $1.65 per $100 of financing approved.
The MARG fee is payable annually at the time of application; for renewals, payment is expected within 15 business days of EDC’s approval. Payment of the fee activates the guarantee from EDC.
More information
Call 1-866-283-2957, weekdays between 8 a.m. to 6 p.m. EST or complete our contact us form.
MARG application form
Disclosure and consent form
