Performance Security Insurance

Winning large contracts—especially with international buyers—often comes down to whether you can provide the right financial assurances. For Canadian businesses that need to issue a letter of guarantee or similar security to secure a deal, Performance Security Insurance from Export Development Canada can play a critical role. This solution is designed to support companies operating across Canada and in a wide range of industries when contract requirements create pressure on cash flow or existing credit facilities.

Rather than providing direct cash funding, Performance Security Insurance helps protect your business and your bank when guarantees are required for bids, advance payments, or performance obligations. By reducing the risk associated with these guarantees, EDC makes it easier for businesses to pursue new opportunities without tying up significant capital or limiting their ability to finance other growth initiatives. This can be particularly valuable for exporters, manufacturers, and service providers taking on larger or more complex projects, whether the need is immediate or part of a longer-term expansion strategy.

Because support is structured around the specific project and contract, the level of coverage varies based on your situation and business needs. Applications are ongoing, and businesses meeting certain requirements can explore how this insurance fits into their broader financing and risk management plans. For companies planning to compete for bigger contracts or enter new markets, learning more about how Performance Security Insurance works could open the door to opportunities that might otherwise feel out of reach.