Caisse centrale Desjardins, the financial agent for Desjardins Group, is offering its small business members a chance to increase their working capital when they purchase a foreign receivables factoring service offered by Desjardins and insured by Export Development Canada (EDC).
Under the service, small businesses will be better placed to compete internationally. Exporters can now sell their accounts receivable (in full or in part) to Desjardins after the completion of a foreign transaction. Exporters are paid immediately and Desjardins handles the collection from the foreign buyer. Desjardins in turn is insured for losses by EDC.
“This type of business solution greatly contributes to the success of export companies because they not only benefit from Desjardins’ financing expertise, but they can also take advantage of EDC’s time-tested credit insurance programs,” says Trung Huu Nguyen, Caisse centrale Desjardins senior vice-president, administration and international. “This is essentially a cost-effective way for small businesses to compete effectively.”
Desjardins is one of several financial institutions with which EDC has established partnerships.
“By joining forces with Desjardins, we help Canadian companies increase their competitiveness through flexible credit terms of up to 180 days,” says Franoise Faverjon-Fortin, EDC vice-president, Quebec region. “In essence, we are trying to encourage more small and medium sized businesses to leverage the tremendous opportunities offered by foreign markets.”
Caisse centrale Desjardins is a cooperative institution, owned by Caisses Desjardins, which offers a variety of banking services to Desjardins Group, governments, public and para-public sector organisations, as well as large and medium-sized enterprises.