OTTAWA, Dec. 3, 2015 /CNW/ - Export Development Canada (EDC) today announced that it has provided a guarantee to Guelph-based company Vivere Ltd. (Vivere), a hammock retailer.
Vivere used EDC's Export Guarantee Program (EGP) to help secure the financing they needed to expand into Europe and Asia, as well as further expansion into the US.
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.
"Financing has always been a challenge for us," said Vivere founder and CEO Jason Stoter. "EDC has allowed me to continue our hyper growth. The other option was to go to private equity and give up a part of our business. I didn't want to do that."
"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."
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 for both parties to do business and help grow Canadian trade overall.
Read more about how Vivere Ltd. is expanding through exports on exportwise.ca.
About Vivere Ltd.
Vivere Ltd. is a dynamic outdoor living company that delivers high-quality hammocks, hammock chairs, hammock stands, loungers and outdoor accessories to retailers across the globe. Vivere strongly believes in innovation and produces products that compliment backyards everywhere. Vivere promotes ideals of healthy living and leisure. The company's manufacturing facilities in Asia help it service retailers via direct import, domestic fulfillment and daily drop ship.
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, Export Development Canada, (613) 598-3063, [email protected]