KEEP WORKING CAPITAL FOR DAY-TO-DAY OPERATIONSPROVIDE LETTERS OF GUARANTEE

WITHOUT TYING UP CASH FLOW

CASE STUDY:

Challenge: maple syrup company must post a letter of credit to the FPAQequivalent to 20 % of the inventory required for the year

What they needed: to post letter of guarantee without tying up working capital

How EDC helped: Account Performance Security Guarantee covers 100% of the letter of guarantee to the FPAQ

Benefit to company: free up the collateral that would have been tied up as a guarantee

Benefit to financial institution partner: EDC offers a 100% guarantee

NON-PAYMENT RISK WITH A FOREIGN CUSTOMERSUPPORT FOR FIRST TIME EXPORTER

CASE STUDY:

Challenge: small food distributor’s new French buyer wants payment terms of 60 days on 50,000 euro contract

What they needed: to offer good payment terms and to be protected from risk of non-payment

How EDC helped: Trade Protect insures 90% of the receivables for one customer

Benefit to company: access to a new market to get new orders while being protected from non-payment risk

Benefit to partner bank: as the insurance beneficiary, the risks are reduced

FINANCING WORK IN PROGRESSSUPPORT FOR FIRST EXPORT CONTRACT

CASE STUDY:

Challenge: SME in IT just won $750,000 U.S. contract

What they needed: fund contract-related costs, including work-in-progress and inventory costs

How EDC helped: Export Guarantee Program shares risk with bank to guarantee 75% on $500,000 line of credit

Benefit to company: gets the working capital it needs to fulfill the contract

Benefit to financial institution partner: can offer complete solution to customer while sharing risk with EDC

INDIRECT EXPORT TO A SUPPLIERSUPPORT FOR POSTING LETTERS

OF GUARANTEE WITHOUT

FREEZING LINE OF CREDIT

CASE STUDY:

Challenge: SME lands $300,000 contract with mining company that requires a $150,000 letter of guarantee to offer a 60-day payment term

What they needed: to post a letter of guarantee while maintaining line of credit for working capital

How EDC helped: Account Performance Security Guarantee provided bank with 100% guarantee on $150,000 letter of guarantee

Benefit to company: gets the working capital it needs to fulfill the contract and get better payment terms from supplier

Benefit to financial institution partner: can offer solution to customer while transferring 100% of the risks to EDC

CASE STUDY:

INCREASING BORROWING CAPACITIES ON CURRENT CREDIT LINESUPPORT FOR WORKING CAPITAL

Challenge: fast-growing infrastructure company needs more financing support international growth

What they needed: an additional $1.5 million to provide sufficient working capital

How EDC helped: Credit insurance increased bank’s risk protection while Export Guarantee Program allowed overseas inventory to be included as assets

Benefit to company: gets the $1.5 million it needs to fulfill contract and grow

Benefit to financial institution partner: can offer additional $1.5 million to customer’s line of credit while sharing risk

INCREASING CAPACITYSUPPORT FOR WORKING CAPITAL

AND FOREIGN EXCHANGE FACILITIES

CASE STUDY:

Challenge: company with an 18-month AED$3 million contract to Dubai worried about FX fluctuations

What they needed: working capital to fulfill contract and protection from exchange rate fluctuations

How EDC helped: Export Guarantee Program shared risk with bank to cover letter of guarantee and FX facility

Benefit to company: gets 400 000 $ of collateral from EDC to keep its working capital and fulfill the contract

Benefit to financial institution partner: satisfy customer’s need with a cost-effective solution and without requiring extra collateral

CONTRACT FINANCING INCLUDING PRE-SHIPMENT PERIOD

CASE STUDY:

Challenge: green technology company needs working capital for fulfill 2 large contracts to the U.S.

What they needed: with 2 contracts increasing sales by 67%, more working capital was required

How EDC helped: provided a term loan of $1.2 million to fund 100% of costs for both contracts

Benefit to company: gets the working capital it needs to fulfill 2 contracts and continue to grow internationally

Benefit to financial institution partner: can defer risk of financing company that doesn’t currently meet financing criteria while offering a temporary solution and build customer loyalty

FINANCING EXPANSION ABROAD SUPPORT FOR FOREIGN SUBSIDIARIES

CASE STUDY:

Challenge: Canadian equipment company’s cannot leverage borrowing capacity on the assets of its growing Mexican subsidiary

What they needed: working capital to support the operations of its subsidiary

How EDC helped: line of credit 100 % guaranteed by EDC to facilitate a letter of guarantee to the foreign financial institution

Benefit to company: was able to leverage foreign assets to get borrowing capacity

Benefit to financial institution partner: risk-sharing with EDC helped provide a comprehensive financing structure for customer

FINANCING EXPANSION ABROAD (CON’D)

SUPPORT FOR OVERSEAS ACQUISITIONS

CASE STUDY:

Challenge: Canadian equipment company needs support for acquisition in England

How EDC helped: provided a 60% guarantee on a $4 million term loan to acquire assets

Benefit to company: gets the $4 million financing it needs to expand its operations to England

Benefit to partner financial institution: risk-sharing with EDC helped provide financing solution for customer’s acquisition based on customer’s foreign assets

Challenge: Canadian equipment company needs support for acquisition in Brazil

How EDC helped: provided a term loan of $3 million over 5 years for acquiring assets in Brazil, as well as Political Risk Insurance

Benefit to company: gets the $5 million financing it needs to expand its operations to Brazil and protects assets and investments against certain political events

Benefit to partner financial institution: not limit financing capacity of the company’s additional needs and get a non-competing partner

Challenge: Canadian equipment company needs support for acquisition in the United States

How EDC helped: provided $2 million in equity to complete a private investor equity offer of $8 million

Benefit to company: gets the $5 million financing it needs to expand its operations to United States

Benefit to partner banks: EDC works with partner(s) rather than competing, enabling banks to offer a range of financing solutions to their customers

FINANCING PARTNERSHIPSSUPPORT FOR BANK SYNDICATION

CASE STUDY:

Challenge: financing for acquisitions and working capital needs a syndicate of lenders

What they needed: leadership to help recruit North American banks to join the syndicate to raise $240 million

How EDC helped: provided $12.5 million towards the $240 million required

Benefit to company: gets the financing it needs to support its international expansion plan and working capital needs

Benefit to bank partner(s): EDC becomes a valuable partner in the syndication, able to fill shortfalls in required funding

CASE STUDY:

FINANCING A SUPPLY CHAINSUPPORT FOR INVENTORY LOCATED ABROAD

Challenge: Canadian broker for the garment industry must pay suppliers upfront before receiving sales revenues

What they needed: financing for inventory between the purchasing and sales cycles

How EDC helped: 100 % export guarantee to the financial institution to cover the inventory in transit and in storage abroad with the operation line of credit

Benefit to company: gets the financing it needs to pay its suppliers and better manage its cash flow

Benefit to partner bank: 100% guarantee enables bank to satisfy customer’s financing requirements

CASE STUDY:

FINANCING A SUPPLY CHAINSUPPORT FOR SUPPLIER PAYMENT TERMS

Challenge: Canadian pharmaceutical company must pay packaging supplier on delivery, creating cash flow problems

What they needed: a solution to get better payment terms from the packaging supplier

How EDC helped: provided a 100% guarantee on letter of guarantee to the financial institution

Benefit to company: packaging supplier is persuaded to accept 60-day terms, enabling company to better manage its cash flow

Benefit to partner bank: With the 100% guarantee, bank can provide letter of guarantee without freezing customer’s funds

CASE STUDY:

REDUCE GLOBAL RISK AND ACCESS TO CASH FLOWSUPPORT FOR LETTERS OF GUARANTEE

Challenge: Posting letters of guarantee and FX risk leaves optics and photonics company struggling for sufficient working capital

What they needed: solutions to post letters of guarantee without tying up working capital and manage FX risk

How EDC helped: Account Performance Security Guarantee to provide a 100% guarantee to the bank for letters of guarantee and foreign exchange risk

Benefit to company: has access to funds usually tied up for letters of guarantee and FX facility for day-to-day operations

Benefit to partner bank: Can allow customer full access to their working capital, without having to freeze funds

CASE STUDY:

UPGRADINGEQUIPMENTSUPPORT TO UPGRADE EQUIPMENT

Challenge: smelting plant buying equipment for €5 million but a 50% advance payment is required

What they needed: protection from non-payment due to risks such as manufacturer’sbankruptcy; contractcancellation; and currencytransfer and conversion

How EDC helped: ContractFrustration Insurance for advance payment in investment expenses

Benefit to company: gets the financing it needs to make the advance payment

Benefit to partner bank: as policy beneficiary, the bankis protected from risks of non-payment while able to offer its customer financingfor the advance payment

Partnership between EDC and (Name of the bank)

EXPORTING TO GROW

YOUR CLIENTS’ BUSINESS

– AND YOUR OWN

INCREASING THECAPACITYWORKING CAPITAL AND FOREIGN

EXCHANGE FACILITY SUPPORT

Challenge: A company with a 3M AED, 18-month contract in Dubai is worried about currency fluctuations

Need: To protect the profit margin of this new deal through a $2M foreign exchange contract

EDC’s solution: A foreign exchange contract guarantee on 100% of the collateral required for the foreign exchange facility

Benefits for the company: It received $400,000 in collateral from EDC, allowing it to save its working capital to complete the contract

Benefits for the partnering financial institution: It met its client’s needs with an affordable solution and without requiring other guarantees

INCREASINGCAPACITYWORKING CAPITAL AND COMMODITY (FUEL)

FACILITIES SUPPORT

Challenge: A company transporting goods across North America faces significant fuel costs, and is worried about variations in energy prices

Need: To protect the profit margin while locking in supply costs

EDC’s solution: A commodity hedging guarantee covering 100% of the collateral required by the bank for the commodity hedging facility

Benefit for the company: Getting a fixed price on fuel supply improved the company’s accuracy of budget predictions and ability to manage cash flow

Benefit for the bank: It met its client’s needs with an affordable solution and without requiring other guarantees