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Home > Home > Our Solutions > Bonding and Guarantees > Foreign Exchange Facility Guarantee

Foreign Exchange Facility Guarantee

Our Foreign Exchange Facility Guarantee gives your foreign exchange provider peace of mind knowing they are protected if you don’t pay. With this guarantee in place, you won’t need collateral when purchasing foreign exchange contracts to protect against currency risk – leaving you with access to more cash.

  • Take the guess-work out of your budget forecasts by securing the exchange rate. You will know exactly the amount you’ll be paid in Canadian dollars.
  • Lock in your currency exchange rate without having to post collateral.

Stop worrying about foreign exchange risk

Since export sales are often invoiced in the international customer's currency, fluctuations in exchange rates can make it a challenge to budget up-front costs and accurately gauge how much you’ll end up being paid. With a foreign exchange contract, your provider agrees to lock in the exchange rate on the contract, removing the foreign exchange risk.

Free up capital to take on more business

Our Foreign Exchange Facility Guarantee encourages your foreign exchange provider to forego the usual collateral requirement by providing them with a guarantee that covers their losses in the event that you fail to honour your obligations under your foreign exchange contracts. Your funds are then available to pursue new business opportunities.

Qualification

In evaluating applications, we examine your company's managerial, technical and financial capabilities.

Learn more

View our detailed product brochure (PDF)

Have a question?

Have a question about our bonding and guarantee solutions?

Call 1-800-229-0575 weekdays, 9 am to 5 pm EST, or submit a question online.

Important Information
The above information describes, in general, EDC services and is not a commitment to provide them. Only the documentation supplied by EDC, in connection with any transaction, provides the full detail and terms and conditions.

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