EDC Account Performance Security Guarantee: How to Apply Through Your Bank

If your export contract requires a performance bond or letter of guarantee, your bank may ask you to set aside cash or other assets as security. This can tie up your working capital and slow your business growth. The EDC Account Performance Security Guarantee helps Canadian exporters get these guarantees through their bank without locking away cash. Export Development Canada (EDC) shares the risk with your lender, making it easier for your bank to approve the guarantee.

How the EDC Account Performance Security Guarantee Works

The EDC Account Performance Security Guarantee is not a cash grant. Instead, it is a federal guarantee. EDC supports your bank when it issues performance security for an export contract. EDC covers part of your bank’s risk, so your bank is more likely to approve the guarantee.

What does the guarantee support?

Letters of guarantee
Standby letters of credit
Other performance security needed for export contracts

These tools show your customer that you will deliver your goods or services as promised. Without EDC’s support, banks often ask for cash or extra collateral.

Who delivers the program?

Export Development Canada (a federal Crown corporation)
Your current financial institution applies to EDC for you

You cannot apply directly to EDC for this guarantee. Your bank must handle the process.

Eligibility Requirements You Should Know

EDC and your bank decide if you qualify. There is no public application form. The main factors are:

Canadian business with export activity or confirmed export plans
Strong operational and financial health to support the contract
Export contract needs performance security, like a letter of guarantee
Country risk and buyer profile must be acceptable to EDC

EDC looks at your business and the buyer’s country to decide if it will share the risk.

Before talking to your bank, you can use tools like GrantHub’s eligibility matcher to check if EDC programs and other federal supports are right for your business.

Step-by-Step: How to Apply Through Your Bank

Here’s how most Canadian exporters get the EDC Account Performance Security Guarantee:

Talk to your bank account manager
Tell your bank that your export contract needs performance security and ask about EDC-backed guarantees.
Share your export contract and financial information
Your bank will review your contract, the amount needed, and your financial health.
Bank contacts EDC for you
If your deal fits, your bank asks EDC for support. EDC does its own risk review.
Approval and issuance
If approved, your bank issues the letter of guarantee or standby letter of credit, backed by EDC.

The process may be faster or slower depending on your finances, the buyer’s country, and if your documents are complete.

What This Guarantee Does—and Does Not—Cover

What it does:

Lowers your bank’s risk
Reduces or removes the need for cash security
Keeps your working capital free for other business needs

What it does not do:

Give you direct cash funding
Remove your duty to deliver on the contract
Guarantee payment from your foreign customer

This guarantee supports your bank, not your buyer.

Common Mistakes to Avoid

Contacting EDC instead of your bank
EDC will direct you to your financial institution. Start with your bank to save time.
Waiting until the last minute
Performance security often needs to be in place quickly. Talk to your bank early, before signing final contracts.
Thinking there is no financial review
EDC will still check your finances and operations. Incomplete or weak documents can slow things down.
Believing it is taxable income
This is a guarantee, not a cash payment. It is usually not treated as taxable income.

Frequently Asked Questions

Q: What is the EDC Account Performance Security Guarantee?
It is a federal guarantee that helps your bank issue performance security for export contracts without needing you to post cash collateral. EDC shares the risk with your bank.

Q: Do I need an existing banking relationship to apply?
Yes. The guarantee is only available through your financial institution. Your bank works with EDC for you.

Q: Does the guarantee require collateral or cash security?
Usually not. With EDC sharing the risk, banks often lower or remove the need for cash security.

Q: How long does EDC approval take?
Approval times depend on your finances, the buyer’s country, and how quickly your bank sends all the needed information.

Q: Is this considered government funding or a grant?
No. It is a risk-sharing guarantee, not direct funding or a loan.

Next Steps

If your export contract needs performance security, talk to your bank early and ask about EDC-backed guarantees. Once you know the requirements, use GrantHub to find EDC programs and other export supports that match your business and growth goals.

GrantHub tracks hundreds of grant and guarantee programs across Canada—including EDC tools—so you can check which ones are available before you visit your bank.

EDC Account Performance Security Guarantee: How to Apply Through Your Bank