Small business exporters have a new opportunity to increase their working capital by purchasing a foreign receivables factoring service from Exportbank that will be insured by Export Development Canada (EDC).
Under the service, small businesses will benefit from an increase in liquidity making them better placed to compete internationally. Exporters can now sell their accounts receivable to Exportbank, who in turn pays the exporter immediately and then handles the collection from the foreign buyer. EDC in turn ensures Exportbank for losses.
“At Exportbank we realise that the most important factor in growing a business is cash flow,” says Exportbank president Gary Berger. “A predictable flow of funds is especially important for the smaller exporter who historically has not had the same ability to access funding from traditional lending institutions as a larger one.”
“By joining forces with Exportbank, we help Canadian companies increase their competitiveness through flexible credit terms of up to 90 days,” says Ruth Fothergill, EDC regional vice-president, Ontario. “In essence, we are trying to encourage more small and medium sized businesses to leverage the tremendous opportunities offered by foreign markets.”
Exportbank is a service of elanbancorp, which encourages and addresses the needs of smaller or first time exporters (less than C$1mn in exports).