Export Development Canada

Definition

Export Development Canada (EDC) is Canada’s export credit agency, with the purpose of supporting and facilitating Canadian exporters and investors in international markets. 

What is Export Development Canada?

EDC offers various financial products and services to support Canadian exporters, including export loans, working capital financing, and buyer financing. These financial solutions help Canadian companies access the capital they need to finance export contracts, fulfill orders, and expand their international sales.

Furthermore, EDC provides export credit insurance to protect Canadian exporters against the risk of non-payment by foreign buyers. This insurance coverage helps exporters reduce the financial risk of doing business in foreign markets and provides peace of mind when extending credit terms to international customers.

EDC provides market intelligence, research, and insights to help Canadian companies identify export opportunities, assess market potential, and develop market entry strategies. Its global network of experts and resources helps exporters stay informed about market trends, regulatory changes, and business opportunities around the world.

Additionally, EDC facilitates trade financing and payment solutions to support international transactions and trade flows. It offers services such as letters of credit, documentary collections, and trade finance guarantees to help exporters and importers manage the financial aspects of international trade transactions.

Example of Export Development Canada

ABC Furniture, a Canadian furniture manufacturer, has secured a contract to supply a large hotel chain in the U.S. with furnishings for its new properties. However, ABC Furniture lacks the working capital needed to fulfill the order. EDC steps in and provides ABC Furniture with a working capital loan, allowing the company to purchase raw materials, manufacture the furniture, and deliver it to the hotel chain on time. With EDC’s financial support, ABC Furniture successfully expands its export business into the U.S. market and establishes itself as a reliable supplier for international clients.