Canada's export credit agency Export Development Canada (EDC) has signed a joint financing agreement with HSBC Bank Canada to help support Canadian exporters.
The programme is known as the trade invoice non-recourse financing facility (TINRFF) programme, and it aims to complement HSBC's range of trade finance products.
Under the initiative, Canadian exporters will be able to obtain a discount of up to 100% of the portion of the exporter’s open-account receivable that is covered by EDC. It will minimise the commercial and political risk exposure by doing business in many foreign markets.
It aims to improve the exporter’s working capital by converting receivables and invoices to cash, and enhances the exporter’s quality of credit management.
"This new programme will give our clients an even greater competitive edge by providing them upfront access to working capital and liquidity through their own receivables base,” comments Henry Park, vice-president, head of trade and supply chain, HSBC Bank Canada.
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