Helping Canadian Companies Achieve Their Global Strategy October 2011.
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Helping Canadian Companies Achieve Their Global Strategy October 2011
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Transcript of Helping Canadian Companies Achieve Their Global Strategy October 2011.
Helping Canadian CompaniesAchieve Their Global Strategy
October 2011
Story
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Jill Inc. is a Canadian company
Started locally and now sells across Canada
Domestic market saturated and sales have been flat
Considering changing business model to include exporting
Jill Inc. Looking to Grow
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Situation: Contract in Mexico
Need: worried about non-payment
Solution: EDC insures single contract
Benefit: Risk of not getting paid covered
Risks Covered
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Exporter
Contract
Foreign Buyer
EDC
Single Buyer Policy
Mexico Sales Growing
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Situation: exporting business growing
Need: additional cash
Solution: ARI to free up security under operating line
Benefit: Risks covered and more cash available to grow business
Insurance Frees Up Operating Line
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EDC
AR Policy
Exporter
Contract
Foreign Buyer
Canadian Bank
Assigned
Company Taking Off in Mexico
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Situation: New buyers want financial or performance guarantees
Need: Operating line tied up by guarantees
Solution: EDC backstops performance
and financial risk for bank
Benefit: Operating line not tied up by guarantee
EDC Backstops Performance
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Exporter
Contract
Foreign Buyer
Letter of Credit
Advise
Confirm
Foreign BankSecurity
EDC
Guarantee
SecurityX
Direct Loan to Buyer
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EDC
Loan
Exporter
Contract
Foreign Buyer
Local Manufacturing Facility Needed
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Situation: Demand outstripping domestic capacity
Need: Require financing to build new plant
Solution: EDC uses financial network to arrange loan and insure foreign affiliate’s receivables
Benefit: additional financing to expand business
EDC Arranges Financing
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EDC
Canadian Bank
Guarantee
Foreign Buyer
Contract
Exporter Foreign Subsidiary
Foreign Bank
Guarantee
AR Policy
Building on Successful Model
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Looking to repeat model in India
Access EDC’s extensive network:banks, government, buyers
Help Jill Inc. build successful marketentrance strategy (new plant, intro tobuyers, market info)
Support business in up to 200 markets
Jill Inc. Today
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Manufacturing facilities around the world
EDC support provided every step of the way
Insurance for one contract to full suite of solutions
Jill Inc.’s success is EDC’s success
