Canada’s Trafic Innovation, a traffic post manufacturer, has received a loan guaranteed by Export Development Canada (EDC), for exports to Colombia.
The C$250,000 loan was provided by National Bank of Canada, and 100% guaranteed by EDC, GTR can confirm.
Trafic Innovation used EDC’s export guarantee programme (EGP), which helped it secure the financing needed to fulfil the order.
Robert Laforce, president and CEO of Trafic Innovation, explains: “Our bank would not back us up with export contracts, so this guarantee is helpful. Without it, I might have gambled, but there’s no way we could have sold as much as we can now.”
Through the EGP, EDC provides a risk-sharing guarantee to the bank of an exporter, covering 75% to 100% of the amount needed. This in turns allows banks to lend larger amounts, and can help to boost SMEs’ working capital.
Carl Burlock, senior vice-president and global head, financing and investments, at EDC, explains: “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. Ultimately it helps provide more working capital to more small Canadian companies.”