EDC Performance Security Insurance
Our Account Performance Security Guarantee (APSG) is the only solution in Canada that gives your financial institution a 100% guarantee for standby letters of credit. This frees up your cash or credit line to help grow your business.
Offered by Export Development Canada
Amount
100% unconditional, irrevocable, AAA-rated guarantee to your financial institution on letters of guarantee and standby letters of credit; no set-up cost, a pre-set monthly rate is paid only when the lender draws on the facility
Quick eligibility check
Who can apply
To determine your eligibility, we will review:
- Your company's operational and financial health.
- The letter of guarantee.
- Your customer's profile and their country's economic conditions.
About the funding
Our Account Performance Security Guarantee (APSG) is the only solution in Canada that gives your financial institution a 100% guarantee for standby letters of credit. This frees up your cash or credit line to help grow your business.
How can an APSG free up my working capital?
An APSG allows you to issue letters of guarantee through your financial institution without needing to put up assets as collateral. EDC assumes 100% of your financial institutionās risk, allowing your lender to confidently issue guarantees while keeping your working capital available for other business needs.
How does APSG coverage work?
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An APSG provides a 100% unconditional, irrevocable, AAA-rated guarantee to your financial institution. If your letter of guarantee is called by the beneficiary, EDC will cover their claim within five business days.
What types of letters of guarantee are covered by an APSG?
An APSG can provide collateral replacement for contractual and financial letters of guarantee, including:
- bid bonds
- acquisition bonds
- advanced payment guarantees
- performance bonds
- warranty bonds
- lease bonds
- supplier guarantees
- regulatory guarantees
What are the costs associated with an APSG?
There is no cost to set up an APSG. You only incur costs when your lender draws on the facility to cover a letter of guarantee you need issued. The monthly rate is pre-set and agreed upon in advance. You only pay for what you use. This fee can be factored into your contract price, making the APSG a low-cost solution.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| EDC Portfolio Credit Insurance | Insurance | Policy pays up to 90% of the value of your insured invoice | Open |
| EDC Select Credit Insurance | Insurance | Covers up to 90% of your insured losses (up to 90% of the value of your insured invoice), on insured sales up to $500,000 | Open |
| EDC Surety bonds | Insurance | No fixed amount | Open |
| AAFC AgriInsurance | Insurance | No fixed amount | Open |
