Terrebonne's Précision SF Tech uses EDC loan guarantee to boost sales in the US

OTTAWA, Dec. 1, 2015 /CNW/ - December 1, 2015 – Export Development Canada (EDC) today announced that it has provided a loan guarantee to Terrebonne, Quebec-based Précision SF Tech (SF Tech), makers of aircraft landing gear.

SF Tech used EDC's Export Guarantee Program (EGP) to help secure the financing they needed to deliver on an important order with an American aerospace giant.

The EGP is a flexible, risk-sharing guarantee that EDC provides to the bank of an exporter. It assures the bank that a percentage of a loan they give to an exporter will be repaid (generally 75 per cent but can be as high as 100 per cent of the loan, as it was in this case.)

By EDC sharing in the bank's risk, Canadian banks can often be more willing to lend larger amounts to Canadian companies for their international business. This is especially important for small- to medium-size enterprises (SMEs) that need working capital to grow and meet the demands of new orders. 

"EDC's guarantee to our bank allowed them to almost double our credit line," said Michel Lapierre, CFO of SF Tech. "That's incredibly valuable for us. When large companies use our products, it's a real endorsement of our work."

"This program is a difference maker for SMEs because it provides that extra boost they need to grow," said Carl Burlock, Senior Vice-president and Global Head, Financing and Investments, EDC.

"The EGP can be tailored to suit the needs of any company, whether that's getting financing to break into new markets, money to purchase new equipment to take on new orders, or support for international investments," Burlock added. "Ultimately it helps provide more working capital to more small Canadian companies."

"This program is a difference maker for SMEs because it provides that extra boost they need to grow," said Carl Burlock, Senior Vice-president and Global Head, Financing and Investments, EDC.

"The EGP can be tailored to suit the needs of exporters, whether that's getting financing to break into new markets, money to purchase new equipment to take on new orders, or support for international investments," added Burlock. "Ultimately it helps provide more working capital to grow their sales."

Read more about how SF Tech is expanding through exports on exportwise.ca.

EDC is Canada's trade finance agency dedicated to helping Canadian businesses grow by selling outside of Canada.

EDC provides commercial financing, insurance, and bonding products to Canadian companies, and their foreign customers, making it easier to do business and help grow Canadian trade overall.

About Précision SF Tech

SF Tech is a Canadian company specializing in multi-axis hard-metal machining of components and sub-assemblies for use in the aerospace industry.

About EDC

EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment. For more information about how we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.

 

SOURCE Export Development Canada

For further information: Caroline Elie, Media Relations Advisor, Corporate Communications, EXPORT DEVELOPMENT CANADA, T: 613.598.3063, F: 613.598.3080, M: 613.698.7590, celie@edc.ca, edc.ca

RELATED LINKS
http://www.edc.ca

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890