Performance Security Insurance

Overview of the Performance Security Insurance program:

Foreign buyers often ask for a guarantee - assurance that you'll perform to the stipulations of your contract. If a guarantee that your bank issued on your behalf is called for no valid reason, you will have to come up with funds to reimburse the financial institution. The Performance Security Insurance (PSI) can cover up to 95 per cent of losses if your foreign customer demands payment on a bank-issued guarantee without a valid reason.

Benefits of the Performance Security Insurance program:

• Explore new markets
• Dealing with customers you dont know, in markets you dont know, can be risky. Take on new business confidently.
• Better cash flow
• Put your capital to work instead of stockpiling it in case a letter of guarantee is called.
• Lower costs
• Minimize the impact on your liquidity if a letter of guarantee is called.
• Easier access to opportunities
• Be confident you can provide letters of guarantee to secure contracts.

Eligibility criteria of the Performance Security Insurance program:

• Eligibility is determined by EDC based on:
• Review of the letter of guarantee
• Conditions and economic outlook in your customers country, and the customers profile