Getting paid on time is one of the biggest risks in exporting. A single unpaid invoice from an international buyer can strain your cash flow or stall growth. Export Development Canada (EDC) offers export credit insurance options that protect Canadian exporters from non-payment — but choosing the right one depends on how often you export and how much risk you carry.
This guide explains how to choose between export credit insurance options from EDC, with a clear focus on EDC Select Credit Insurance and how it compares to broader coverage.
Export credit insurance is not a grant or a loan. It is an insurance product that protects your business if a foreign customer does not pay. EDC’s trade credit insurance helps Canadian exporters reduce financial risk while selling on open account terms — meaning you ship goods or provide services before receiving payment, trusting the buyer to pay later.
EDC offers two main options:
Both fall under EDC’s Trade Credit Insurance program, but they serve different exporter profiles.
EDC Select Credit Insurance is designed for businesses that export occasionally, are new to exporting, or want coverage for specific buyers or contracts.
Key features include:
Eligibility is broad. You must be a Canadian business that:
Portfolio Credit Insurance is designed for exporters with regular international sales and multiple foreign buyers.
Key differences include:
If you export frequently and rely heavily on international accounts receivable, Portfolio Credit Insurance may be more efficient than insuring deals one by one.
When deciding how to choose between export credit insurance options from EDC, focus on these factors:
You can also use tools like GrantHub’s eligibility matcher to filter export-related programs and financial tools by province, industry, and export stage in seconds.
Assuming export credit insurance is a grant
EDC credit insurance is not free funding. It is a paid insurance product with premiums and conditions.
Over-insuring too early
New exporters sometimes choose portfolio coverage before they need it. Select Credit Insurance is often more cost-effective at the early stage.
Ignoring political risk
Some markets carry political or currency transfer risks. Make sure your policy includes the right coverage for your target country.
Not aligning insurance with financing
Banks often view insured receivables as lower risk. Not discussing your policy with your lender can limit the working capital benefits.
Q: What is EDC Select Credit Insurance?
EDC Select Credit Insurance is short-term, transaction-based trade credit insurance. It protects Canadian exporters from non-payment on specific export sales or buyers.
Q: Who is eligible for EDC trade credit insurance?
Canadian businesses that export goods or services, are part of a global supply chain, or plan to export in the future may be eligible.
Q: How much coverage does Select Credit Insurance provide?
EDC typically covers up to 90% of insured losses, often for transactions up to $500,000 per buyer, depending on the risk profile.
Q: Is EDC trade credit insurance a loan or a grant?
No. It is an insurance product. You pay premiums, and EDC pays a claim if an insured non-payment event occurs.
Q: Can new exporters apply for Select Credit Insurance?
Yes. Select Credit Insurance is specifically designed for new or occasional exporters entering international markets.
Choosing the right export credit insurance is about matching coverage to your export activity, not buying the most complex option available. If you’re exploring EDC insurance alongside grants and export support programs, GrantHub tracks hundreds of active funding and support programs across Canada — helping you see which options fit your business profile and export plans.
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