MONTREAL, Dec. 22, 2015 /CNW/ - Export Development Canada (EDC) today announced that it has provided a CAD 50K loan guarantee to Quebec's Plantations Nicholas.
Plantations Nicholas, a tree farm in the Beauce region, used EDC's Export Guarantee Program (EGP) to help secure the financing it needed to support sales to the US.
"Working with EDC opens up possibilities that we otherwise wouldn't have been able to secure," said Francis Gilbert, owner of Plantations Nicholas. "With EDC's guarantee to our bank, we were able to secure the financing we needed to prepare for the holiday season, and continue to expand our business."
The holidays are a very busy season for tree farmers like Plantations Nicholas. When it comes to exporting Christmas trees, Canadians are among the world's best. In 2014 alone, Canada exported over 1.5 million trees to eighteen foreign markets, with a value of more than CAD 32 million.
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 given to the exporter will be repaid (generally 75 per cent but can be as high as a 100 per cent of the loan.)
With EDC sharing in the bank's risk, Canadian banks are often 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 financing to grow and meet the demands of new orders.
"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," Burlock added.
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: Spokesperson: Caroline Elie, Export Development Canada, (613) 598-3063, [email protected]