Account Performance Security Guarantee

The Account Performance Security Guarantee provides a 100% irrevocable guarantee to an exporter's bank for your bonding needs to free up your cash for growth. This means you won't need to tie up your capital and provide additional collateral for posting bonds for international contracts. Pre-approved access to bonding at pre-set rate gives you the ability to pursue promising business opportunities as they arise.

Export Development Canada

Overview of the Account Performance Security Guarantee program:

The Account Performance Security Guarantee provides a 100% irrevocable guarantee to an exporter's bank for your bonding needs to free up your cash for growth. This means you won't need to tie up your capital and provide additional collateral for posting bonds for international contracts. Pre-approved access to bonding at pre-set rate gives you the ability to pursue promising business opportunities as they arise.

Benefits of the Account Performance Security Guarantee program:

Increase business volumes
Having a pre-approved facility, coupled with unfettered access to your cash and working capital, means you can invest those dollars in other areas to grow your business.
Negotiate better supplier terms
With a supplier guarantee in place, you can negotiate open account terms and a more favourable payment schedule, which can help improve your business cash flow cycle.
Protect profit margins
Having a predefined rate means you can price contracts accordingly, allowing you to anticipate costs and protect your profit margins.
Manage working capital
An APSG supports advance payment guarantees, enabling more flexible customer payment schedules to better manage your liquidity.
Decrease bid response times
Having a predefined facility means your administrative burden is reduced, giving you the agility to react to bids quickly.
Enhance creditworthiness
Respond to your customers letter of guarantee requirements quickly and easily, enhancing your creditworthiness and your ability to deliver on their projects.
100% coverage of eligible contractual and financial letters of guarantee including (but not limited to):
Bid
Advanced payment
Performance
Warranty
Lease
Supplier
Regulatory

Eligibility criteria of the Account Performance Security Guarantee program:

Eligibility
Eligibility determined by EDC based on requirements, including:
The managerial, technical and financial capabilities of your company
Review of the letter of guarantee
Conditions and economic outlook in your customers country, and the customers profile