If your business wants to bid on larger contracts or finance export growth, you might hear from your bank or surety that you’ve reached your credit or bonding limit. This happens often for Canadian exporters, especially when money is tied up overseas or you need big performance bonds. Export Development Canada (EDC) offers tools that help you get more borrowing and bonding capacity. You don’t have to give up equity or take on expensive debt to grow your business.
This guide shows how EDC credit insurance and surety support work. You’ll see how these tools can help your bank or surety approve higher limits for your company.
EDC does not replace your bank. Instead, it helps lower the risk for your lender. When banks feel safer, they are often willing to lend you more money.
EDC Portfolio Credit Insurance protects your business if a customer does not pay when you sell internationally.
With insured receivables, banks usually see your accounts as safer. This can help you get bigger operating lines or better terms.
Key features:
How this increases borrowing:
Who can apply:
GrantHub’s eligibility matcher can help you find EDC programs and export funding that fit your business.
For exporters working on contracts, getting enough bonding can be hard. EDC Surety Bond Insurance helps your surety company approve bigger or more frequent bonds for international contracts.
EDC supports your surety by reinsuring them. EDC does not issue bonds directly.
What this means for you:
Types of bonds supported:
Eligibility depends on:
With EDC’s support, you can often get more bonding than your surety would approve alone, especially for growth contracts.
Many exporters use both EDC tools at the same time:
This approach works well for engineering firms, manufacturers, construction companies, and service providers bidding on international projects.
Waiting until you reach your limit
EDC solutions work best if you set them up before your bank or surety says no.
Thinking EDC is a grant
Credit insurance and surety support are risk management tools, not grants or non-repayable funding.
Only insuring one buyer
Portfolio Credit Insurance is designed to cover more than one customer. This gives lenders more confidence.
Applying without your lender or surety
Your bank or surety needs to be involved. EDC works with them, not around them.
Q: Is EDC Portfolio Credit Insurance a loan or a grant?
No. It is an insurance product that protects your receivables from non-payment. It can help you get bigger loans but does not give you cash directly.
Q: Can EDC help with domestic contracts?
Surety bond support is only for international transactions. Domestic sales insurance may be available through EDC’s partner insurers, but not directly from EDC.
Q: How much can my borrowing capacity increase?
There is no set amount. Increases depend on your receivables, customer risk, and your lender’s policies. Many banks are willing to lend more when receivables are insured.
Q: Do I apply to EDC or my bank first?
You can start with either, but it’s best when your bank or surety is involved early.
Q: Are small businesses eligible for EDC support?
Yes. Many small and medium-sized businesses use EDC credit insurance and surety support to grow exports, if they meet financial and operational requirements.
If your borrowing limits or bond requirements are slowing your growth, consider EDC’s credit insurance and surety solutions early. GrantHub tracks hundreds of active grant and funding programs across Canada — including export-focused supports — and helps you see which ones fit your business.
See also:
Understanding how EDC fits into your financing plan can help you bid on contracts with more confidence.
Was this article helpful?
Rate it so we can improve our content.
Canada Proactive Disclosure Data
The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.