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to date and how this may have impacted your credit management practices Explain any sizeable amounts on your accounts receivables listing that are greater than 90 days overdue If you answered yes to “made to order products,” explain what a typical contract looks like (payment terms, billing schedule and payment triggers, pre-shipment period) If."

Pay premium and fees Credit insurance help & support Your policy, via your Coverage Certificate, explains how your premium is calculated and when you will be invoiced for your premium and credit approval fees. For CAD funds Account Name: Export Development Canada Account Number: 1070382 Institution number: 003 Transit Number: 00006 Swift: ROYCCAT2."

PORTFOLIO CREDIT INSURANCE DIRECTION TO PAY (SPECIFIC RECEIVABLES) (DOMESTIC POLICY) This Direction to Pay is given in connection with Domestic Portfolio Credit Insurance Policy No. (the “Policy”) issued by the Insurers identified in the Coverage Certificate to (the “Main Insured”). EXPORT DEVELOPMENT CANADA, on behalf of the Insurers By ."

Invoicing and statements Credit insurance help & support The invoices and statements portal provides convenient access to all the billing details of your Portfolio Credit Insurance policy. Watch our brief video to learn how to view your account balance, invoices, statements and payment history, as well as how to register for pre-authorized debit."

Forms Credit insurance help & support Direction to pay Consent to the revocation of the direction to pay (PDF) Obtain the consent of the financial institution to cancel a direction to pay that is no longer required. ...u wish to assign all proceeds payableDiscretionary credit limit Bank report (PDF) Request a report from your customer’s financial."

Submitting overdue accounts and claims Credit insurance help & support One of your primary responsibilities as a policyholder is to take steps to prevent and minimize losses. Properly document your sales and shipments in case of a claim You must be able to establish both of the following two facts: First, that the debt exists (that is, the."

EDC is enhancing our security measures to protect your private and business information. EDC Select Credit Insurance Support Here’s some information to help you make the most of your EDC Select Credit Insurance policy On this page: Guides and articles Top 10 frequently asked questions Information about coverage About policy administration About."

Currency Payment Terms Number of Days (if payment terms are >180 days) mailto:support@edc.ca Application for Portfolio Credit Insurance | MEP021-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca Page 8 of 11 POLICY ADMINISTRATION Brokerage Firm."

PORTFOLIO CREDIT INSURANCE: TIPS FOR FILING A CLAIM When your customer fails to pay an invoice, you can make a claim under your Portfolio Credit Insurance policy. Make sure you have the following documents and information on hand for a seamless experience. WHAT YOU NEED TO KNOW • Store your policy document and identify your policy number. It."

The risk of non-payment is top of mind for many Canadian exporters and credit insurance is essential to protect your business. ...teExport Development Canada (EDC), for example, offers solutions that qualified exporters can use to protect their bottom line. For more information, please contact your EDC relationship manager, or contact."

What’s New Credit insurance help & support We’re working hard to listen to your feedback and make improvements to the Portfolio Credit Insurance portal so it’s easier and faster for you to manage your insurance with EDC. Recent updates New two-factor authentication process Portfolio Credit Insurance (PCI) invoice payments June 2024 Highlights New."

Page 1 of 2 Schedule A – Tripartite Agreement for Sold Accounts (Specific Accounts) (Domestic Policy) | DEP005-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca NAME OF MAIN INSURED, on its own behalf and on behalf of any Additional Insured under the."

Find the EDC credit insurance solution that's right for you Answer a few questions to get a recommendation. What type of sales do you want to cover. International Domestic Both If a buyer cancels their order of your product/ service, could you easily resell it to someone else. Yes No Do you need to insure any orders worth more than $500,000. Yes."

The risk of non-payment is top of mind for many Canadian exporters and credit insurance is essential to protect your business. ... Credit risk appetiteEDC, for example, offers solutions that qualified exporters can use to protect the bottom line. For more information please contact your EDC Relationship Manager or contact us directly at."

Register and apply Credit insurance help & support For detailed instructions on how to register your company and apply for Portfolio Credit Insurance, select a topic from the menu below. Select a topic Register your company Apply for insurance Locating your application form and status Date modified: 2024-07-19."

Ratings Exhibit 5 Category Moody's Rating EXPORT DEVELOPMENT CANADA Outlook Stable Insurance Financial Strength -Dom Curr Aaa Issuer Rating -Dom Curr Aaa Senior Unsecured Aaa Commercial Paper P-1 Other Short Term (P)P-1 Source: Moody's Ratings 4 30 August 2024 Export Development Canada: Update to credit analysis ."

Customer Care call centre Holiday hours. ...buyer policies) Select Credit Insurance policies Top topics Accessing webinars Grants, funding, trade and customs regulations EDC working capital guarantees Export Guarantee Program Account Performance Security Guarantee Foreign Exchange Facility Guarantee Trade Expansion Lending Program (TELP) Covid-19."

Here’s a brief description of the differences: A documentary credit, also known as a letter of credit, is an undertaking provided by the buyer's bank, stating that if the seller complies with its various terms and conditions, the bank will guarantee payment in the manner described therein. ...rough paid online workshops and more."

...al $9,746 Europe and CIS Europe and CIS Financing $1,741 Credit Insurance $7,341 Financial Institutions Insurance $525 International Trade Guarantee $580 Political Risk Insurance - Total $10,187 North America North America Financing $11,777 Credit Insurance $43,428 Financial Institutions Insurance $1,648 International Trade Guarantee $6,189."

Register your company Credit insurance help & support Before applying for insurance, you’ll need to register your company with EDC. To do so, follow these instructions: Visit Portfolio Credit Insurance portal, click Sign Up. Step 1: Your company a. Enter your company’s legal name and province, along with any other relevant information, into the."

How to reset passwords Credit insurance help & support Resetting a user password can be done in several ways depending on your situation. You can: Reset your password if you have forgotten it and cannot log into the credit insurance system Reset your password from within the credit insurance system Reset another user’s password (Full User Access."

CASE STUDY EDC’s Account Performance Security Guarantee helps SRTX gain access to more working capital by freeing up collateral SRTX is a Montreal-based company launched in 2017 that makes pantyhose from the world’s strongest polymer. The ultra-resilient tights, called Sheertex, are made from the same fibre as bulletproof vests and climbing equipment. Challenge Freeing up working capital held as collateral. When SRTX decided to expand its business, it needed: •a letter of guarantee to secure an electric connection from Hydro Quebec; •a lease bond for its landlord to build a customized facility; and •a supplier bond to obtain favorable credit terms from its supplier of raw materials. In each situation, SRTX’s bank required significant collateral to provide these guarantees, limiting its access to working capital. EDC Solution Export Development Canada (EDC) worked with SRTX’s financial institution to implement an Account Performance Security Guarantee (APSG), to replace the collateral requirement on their letters of guarantees and bonds. Company: SRTX Location: Montreal, Quebec Exports to: U.S., European Union, United Kingdom and Australia Industry: Manufacturing EDC Product/Program: Account Performance Security Guarantee (ASPG) The working capital freed up by leveraging APSG as a collateral replacement allowed SRTX to grow further in the United States and to expand its business to the European Union, United Kingdom and Australia. Result Learn more about EDC’s Account Performance Security Guarantee (ASPG), or contact your relationship manager. If you don’t have a relationship manager, call 1-800-229-0575 or send an inquiry. “I couldn’t be more grateful for the unparalleled support and advice (EDC has) provided throughout SRTX’s growth journey.” — Katherine Homuth, SRTX, CEO Succeed with EDC https://www.edc.ca/en/solutions/working-capital-guarantees/account-performance-security-guarantee.html https://www.edc.ca/en/solutions/working-capital-guarantees/account-performance-security-guarantee.html https://www.edc.ca/en/solutions/working-capital-guarantees/account-performance-security-guarantee.html https://www.edc.ca/en/solutions/working-capital-guarantees/account-performance-security-guarantee.html https://www.edc.ca/en/form/inquiry.html Slide 1"

Credit Insurance services will be unavailable on Feb 8th from 4am to 8am due to scheduled maintenance"

du réseau électrique Lire l’article Tantalus, l’entreprise novatrice de technologies propres qui révolutionne le concept du réseau électrique Découvrez comment Tantalus Systems aide les services publics nord-américains à moderniser leurs réseaux de distribution électrique et à exploiter les données pour gérer plus efficacement leur approvisionnement en électricité. Lire l’article Accélérer l’innovation propre au Canada Il sera crucial de rivaliser pour assurer l’essor de nos exportations. Lire l’article Accélérer l’innovation propre au Canada Lire l’article Accélérer l’innovation propre au Canada Il sera crucial de rivaliser pour assurer l’essor de nos exportations. Lire l’article Vous avez déjà un compte MonEDC? Ouvrez une session pour accéder, en un seul clic, à nos connaissances, nos webinaires et nos ressources qui vous aideront à atténuer les risques et à prendre de l’expansion. Ouvrir une session MonEDC Chargement Merci! Nous espérons que vous avez trouvé cette information utile. Chargement Merci! Nous espérons que vous avez trouvé cette information utile. Obtenez une aide de confiance pour votre entreprise de technologies propres avec nos solutions financières Augmentez votre fonds de roulement Obtenez plus de financement auprès de votre institution financière Libérez votre fonds de roulement Obtenez des lettres de garantie sans immobiliser votre capital Financez des projets complexes Obtenez l’aide qu’il vous faut avec des solutions de financement novatrices Envie de prendre de l’expansion dans le secteur des technologies propres? Découvrez ce que nous pouvons faire pour vous aider à percer de nouveaux marchés avec confiance, à réduire vos risques financiers et à prendre de l’expansion en nous envoyant vos questions. Vous pouvez aussi nous appeler au 1­800­229­0575 en semaine, entre 8 h et 20 h (HE). Date de modification : 2024-09-24"

du réseau électrique Lire l’article Tantalus, l’entreprise novatrice de technologies propres qui révolutionne le concept du réseau électrique Découvrez comment Tantalus Systems aide les services publics nord-américains à moderniser leurs réseaux de distribution électrique et à exploiter les données pour gérer plus efficacement leur approvisionnement en électricité. Lire l’article Accélérer l’innovation propre au Canada Il sera crucial de rivaliser pour assurer l’essor de nos exportations. Lire l’article Accélérer l’innovation propre au Canada Lire l’article Accélérer l’innovation propre au Canada Il sera crucial de rivaliser pour assurer l’essor de nos exportations. Lire l’article Vous avez déjà un compte MonEDC? Ouvrez une session pour accéder, en un seul clic, à nos connaissances, nos webinaires et nos ressources qui vous aideront à atténuer les risques et à prendre de l’expansion. Ouvrir une session MonEDC Chargement Merci! Nous espérons que vous avez trouvé cette information utile. Chargement Merci! Nous espérons que vous avez trouvé cette information utile. Obtenez une aide de confiance pour votre entreprise de technologies propres avec nos solutions financières Augmentez votre fonds de roulement Obtenez plus de financement auprès de votre institution financière Libérez votre fonds de roulement Obtenez des lettres de garantie sans immobiliser votre capital Financez des projets complexes Obtenez l’aide qu’il vous faut avec des solutions de financement novatrices Envie de prendre de l’expansion dans le secteur des technologies propres? Découvrez ce que nous pouvons faire pour vous aider à percer de nouveaux marchés avec confiance, à réduire vos risques financiers et à prendre de l’expansion en nous envoyant vos questions. Vous pouvez aussi nous appeler au 1­800­229­0575 en semaine, entre 8 h et 20 h (HE). Date de modification : 2024-09-24"

The difference is as follows:

• A documentary credit (DC), also known as letter of credit (LC), is a method of payment where the importer’s bank guarantees the seller will be paid once the conditions of the letter of credit have been met.

Letters of credit are mostly used to minimize risk in international trade transactions where the buyer and the seller may not know one another.

• Documentary collection is a trade finance tool in which an exporter is paid for their goods by an importer after the two parties' banks exchange the required documents. This payment form is facilitated by the banks of both the exporter (seller) and importer (buyer).

Additional resources

• EDC x FITT -Lite Learning Series | Export Development Canada (EDC)
• Rewards & risks of export payment terms | EDC
• Identifying your export financing requirements | Trade Commissioner Service (TCS)
• Methods of payment in international trade | U.S. Department of Commerce
• What is a letter of credit | Business Development Bank of Canada (BDC)

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Here are some resources that outline the types of tax credit incentives available:

• The U. S. government offers a Federal Business Energy Investment Tax Credit (ITC) for solar power.
• The database of state incentives for renewables & efficiency (DSIRE) provides additional information on the ITC, including a breakdown of sectors, eligible expenses and incentives.

Check with a tax advisor who knows the local market to confirm whether tax credits and incentive programs are available to support you.

Additional resources

• Federal solar tax credits for businesses | U.S. Department of Energy (DOE)
• Everything you need to know about the federal solar tax credit | EnergySage

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EXPORTATION ET DÉVELOPPEMENT | CANADA EXPORT DEVELOPMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca PORTFOLIO CREDIT INSURANCE Termination of Tripartite Agreement On ___________________, a tripartite agreement (the “Tripartite Agreement”) was made between Export Development Canada (“EDC”), ______________________________________ ( the “Main Insured”), and ______________________________________ (the “Financial Institution”) in relation to the purchase of certain accounts receivable insured under the Portfolio Credit Insurance Policy no. __________ (the “Policy”) and the assignment of certain rights under the Policy in relation to such accounts receivable to the Financial Institution. The Main Insured and the Financial Institution each confirm that the Financial Institution is no longer purchasing any accounts receivable insured under the Policy and that they accordingly each request, and agree to, the termination of the Tripartite Agreement, effective ___________________. The Financial Institution further understands and agrees that any interest and/or right it previously held in and under the Policy will terminate at the same time as the Tripartite Agreement terminates. The Main Insured and the Financial Institution have caused this Termination of Tripartite Agreement to be duly executed by their respective authorized signatories as of the effective date set out above. Name of Main Insured: Contact Name & Title: Authorized Signature: Date: Name of Financial Institution: Contact Name & Title: Authorized Signature: Date: XEP029-0323 mailto:support@edc.ca Insured Name: Contact Name: Authorized Signature: Date: Financial Institution Name: Contact Name_2: Authorized Signature_2: Date_2: Date the Tripartite Agreement was made: Name of the Main Insured: Name of the Financial Institution: Policy #: Date of Termination of the Agreement:"

Companies are often surprised to learn that the specific legal entity they’re dealing with has to be evaluated on its own merits when doing a credit review. Many people assume that the credit risk is tied to the brand of the overall customer group, and while the brand holds value, there’s more to it than meets the eye.

On one level, different jurisdictions often require different legal entities. For example, a U.S. company with a manufacturing facility in a different country (for example, Mexico) will have to create a new legal entity. When considering business with this new company, it’s important to understand that the operations of this new entity may be subject to a different legal system when seeking legal remedy because contract laws and protections are different in global markets. This, in turn, can make an affiliate company of the same brand more or less risky based on the country of operation.

On another level, large corporate companies are particularly careful when setting up new entities, so that in case of bankruptcy, the remote entity won’t affect the operations of the group. If the new entity has operational problems, the larger group can terminate that business to avoid court proceedings.

Additional resources

• 6 credit risk management practices that pay off | EDC
• Developing a risk management plan: 4 response options | EDC
• Being Competitive: blogs, articles, guides | EDC

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This Direction to Pay is given in connection with Export Portfolio Credit Insurance Policy No. (the "Policy") issued by Export Development Canada (“EDC”) to (the “ (the "Main Insured"). Terms defined in the Policy have the same meaning when used in this Direction to Pay. Once processed by EDC, this Direction to Pay will be sent by email to the Main Insured and the Financial Institution identified below. FINANCIAL INSTITUTION DETAILS Name of Financial Institution Branch Address Contact Name Contact Telephone Contact Email Any reference to “Company” in this form includes the Main Insured and any Additional Insured covered under the Policy and for the purpose of this Direction to Pay, the Company is acting on its own behalf and on behalf of any Additional Insured under the Policy. On behalf of my Company: 1. I direct EDC to pay directly to the Financial Institution indicated above, any monies that are now payable or that may become payable to my Company under the Policy (including any recoveries), in respect of the account(s) receivable listed below or in any addendum to this Direction to Pay: Name and address of Buyer (Street, City, Province, Country and Postal Code) Amount of receivable Invoice date Invoice number Date of Shipment 2. I understand that, immediately following the date that this Direction to Pay is noted in EDC’s records, EDC may provide the Financial Institution with all information and documents concerning the Policy which is also available to my Company, including information and documents concerning my Company’s compliance with the terms and conditions of the Policy, its termination or default thereunder, Credit Approvals, overdue reports and losses and claims. I consent to such disclosure and I agree to EDC using any technology as EDC may choose from time to time for the purposes of providing any of that information to the Financial Institution; PORTFOLIO CREDIT INSURANCE DIRECTION TO PAY (SPECIFIC RECEIVABLES) (EXPORT POLICY) Page 1 of 2 3. I acknowledge that, if any of the information disclosed to the Financial Institution in conformity with this Direction to Pay is considered “personal information” as defined by the Privacy Act, it will only be disclosed in compliance with the Privacy Act; and 4. I acknowledge that this Direction to Pay cannot be revoked without the written consent of the Financial Institution. This Direction to Pay is not an assignment of the Policy and does not give the Financial Institution any right against EDC whatsoever (including the right to file a claim or sue under the Policy). EDC reserves the right to set-off any amount payable under the Policy or this Direction to Pay against any other amount owed to EDC by the Company or by the Financial Institution. This Direction to Pay will apply to the Policy as it may be renewed, extended or amended from time to time. Main Insured Name Authorized Signature Date This Direction to Pay has been noted in EDC’s records on . EXPORT DEVELOPMENT CANADA By Name Title Page 2 of 2Direction to Pay (Specific Receivables) (Export Policy) | XEP004-1122 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 002: 1 - 002 - 2: 1 - 003: 1 - 004: 1 - 005: 1 - 006: 1 - 007: 1 - 008: 1 - 009: 1 - 010: 1 - 011: 1 - 012: 1 - 013: 1 - 014: 1 - 015: 1 - 016: 1 - 017: 2 - 001: 2 - 002: 2 - 003: 2 - 004: 2 - 005: 2 - 006: 2 - 007:"

This tripartite agreement (the “Agreement”) is made as of the day of , 20 , among Export Development Canada (“EDC”), (the “Main Insured”) and (the “Financial Institution”). 1. EDC has issued Export Portfolio Credit Insurance Policy No. to the Main Insured (the “Policy”), a copy of which, together with any amendments, has been made available to the Financial Institution by the Main Insured. Capitalized terms not defined in this Agreement have the meaning set out in the Policy. 2. The Financial Institution intends to purchase certain of the accounts receivable that are insured under the Policy and requires that the Main Insured, or any Additional Insured under the Policy, as applicable, assign to the Financial Institution their rights under the Policy with respect to these accounts receivable. In this Agreement, the “Insured” means the Main Insured and any Additional Insured under the Policy. 3. The Insured may assign to the Financial Institution the Insured’s rights under the Policy with respect to any Sold Accounts. For the purposes of this Agreement, “Sold Accounts” means those accounts receivable of the Insured that (i) are insured under the Policy, (ii) are sold to the Financial Institution and (iii) relate to Buyers listed in a form attached as Schedule “A” (there may be more than one Schedule “A” created in connection with the Agreement and each of these will form part of this Agreement). Any amount payable by EDC under the Policy pursuant to a claim for Loss with respect to any Sold Account(s) will be paid to the Financial Institution. 4. The Main Insured, on its own behalf and on behalf of any Additional Insured (if applicable): (i) understands that, immediately following the date that this Agreement is noted in EDC’s records, EDC may provide to the Financial Institution all information and documents concerning the Policy which is also available to the Insured, including information and documents related to Credit Approvals, declarations of sales (if applicable), losses and claims and termination of the Policy, as well as information concerning the Insured’s compliance with the terms and conditions of the Policy or default thereunder (including overdue reports), and consents to this disclosure and, further, agrees to EDC using any technology as EDC may choose from time to time for the purposes of providing any of that information to the Financial Institution; and (ii) acknowledges that, if any of the information disclosed to a Financial Institution in conformity with this Agreement is considered “personal information” as defined by the Privacy Act, it will only be disclosed in compliance with the Privacy Act. PORTFOLIO CREDIT INSURANCE TRIPARTITE AGREEMENT FOR SOLD ACCOUNTS (SPECIFIC BUYERS) (EXPORT POLICY) Page 1 of 3Tripartite Agreement for Sold Accounts (Specific Buyers) (Export Policy) | XEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 5. Regardless of EDC’s approval of the assignment of the Insured’s rights under the Policy with respect to any Sold Account(s), and as a condition of EDC paying any claim for Loss to the Financial Institution: (a) the Insured, its representative, or the Financial Institution on behalf of the Insured, must continue to perform and carry out all the obligations and duties of the Insured pursuant to the Policy relating to the Sold Account(s); (b) EDC must receive evidence satisfactory to EDC that the Financial Institution has purchased the Sold Account(s) in respect of which the claim has been submitted; and (c) the Financial Institution must, at EDC’s request, transfer and assign the Sold Account(s) to EDC or to the Insured. 6. (a) EDC does not warrant the performance of the Insured or any affiliate under any insured contract of sale or under the Policy and it is therefore the Financial Institution’s responsibility to ensure that the Insured (or affiliate as the case may be) will carry out its obligations under its contracts of sale and under the Policy. (b) EDC’s only obligations to the Insured and the Financial Institution under the Policy are as set out in the Policy and this Agreement. (c) Any applicable maximum liability amount(s), as set out in the Policy, and all Credit Limits applicable to individual Buyers, continue to apply to Sold Account(s). (d) The Financial Institution will not be in a better position with respect to coverage under the Policy than the Insured would have been if the account receivable had not been sold to the Financial Institution. Regardless of the preceding sentence and Section 29(5) of the Policy, it is agreed and understood that amounts that may be owed by the Insured to EDC under the Policy or under any other EDC product will not be deducted from the amount of any claim payment for Loss with respect to any Sold Account(s) otherwise determined by EDC to be payable to the Financial Institution as per this Agreement and in accordance with the “Calculation of Loss Amount” section of the Policy and any other applicable terms and conditions of the Policy. The Main Insured, on its behalf and on behalf of any Additional Insured under the Policy, hereby understands and acknowledges that the above in no way limits EDC’s right to seek payment from the Insured of any such amounts owing by the Insured to EDC. (e) The Financial Institution must provide EDC with all the documentation and information that EDC normally requires from the Insured when submitting a claim to EDC, if the Insured fails to do so. (f) If EDC pays a claim for Loss with respect to a Sold Account, the Financial Institution’s right of recourse against the Insured in respect of the Sold Account will be restricted to the uninsured portion of the Sold Account and the amount of any applicable unpaid default interest together with any unpaid default interest on the insured portion of the Sold Account from the date of default to the date of payment by EDC. If EDC refuses to pay a claim with respect to a Sold Account, the Financial Institution’s right of recourse will be unrestricted. 7. Neither the assignment of the Insured’s rights under the Policy to the Financial Institution nor anything in this Agreement limits EDC’s rights as insurer. 8. This Agreement may be executed in counterparts and all counterparts constitute one and the same agreement. 9. This Agreement will be binding upon the parties to this Agreement and their respective successors and permitted assigns. This Agreement is not assignable except with the prior written consent of EDC. Page 2 of 3Tripartite Agreement for Sold Accounts (Specific Buyers) (Export Policy) | XEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca The parties to this Agreement have caused this Agreement to be duly executed by their respective authorized signatories as of the day and year first above written. EXPORT DEVELOPMENT CANADA By Name Title By Name Title NAME OF MAIN INSURED, on its own behalf and on behalf of any Additional Insured under the Policy (if any) By Name Title NAME OF FINANCIAL INSTITUTION By Name Title Page 3 of 3Tripartite Agreement for Sold Accounts (Specific Buyers) (Export Policy) | XEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca Email TRIPARTITE AGREEMENT FOR SOLD ACCOUNTS (SPECIFIC BUYERS) (EXPORT POLICY) SCHEDULE A This Schedule is pursuant to the provisions of a Tripartite Agreement for Sold Accounts dated the day of , 20 (the “Agreement”) entered into by Export Development Canada (“EDC” ); (the “Financial Institution”), and (the “Main Insured”). Name & Address of Buyer EDC “Approved” Credit Limit Date Amount Maximum Terms NAME OF MAIN INSURED, on its own behalf and on behalf of any Additional Insured under the Policy (if any) Signed this day of , 20 . By Name Title Page 1 of 2Schedule A – Tripartite Agreement for Sold Accounts (Specific Buyers) (Export Policy) | XEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca NAME OF FINANCIAL INSTITUTION Signed this day of , 20 . By Name Title EDC hereby confirms that as of the date noted below, the Credit Limit amounts and terms shown above are the amounts and terms approved by EDC, and EDC acknowledges that as at that date, it is not aware of any default by the Insured under the provisions of Policy No. , which would invalidate coverage under the Policy with respect to the above accounts. EXPORT DEVELOPMENT CANADA Signed this day of , 20 . By Name Title Page 2 of 2Schedule A – Tripartite Agreement for Sold Accounts (Specific Buyers) (Export Policy) | XEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 001: 1 - 002: 1 - 003: 1 - 004: 1 - 005: 1 - 006: 3 - 001: 3 - 002: 3 - 003: 3 - 004: 3 - 005: 3 - 006: 3 - 007: 3 - 008: 3 - 009: 3 - 010: 3 - 011: 3 - 012: 3 - 013: 4 - 001: 4 - 002: 4 - 003: 4 - 004: 4 - 005: 4 - 006: 4 - 007: 4 - 008: 4 - 009: 4 - 010: 4 - 011: 4 - 012: 4 - 013: 4 - 014: 4 - 015: 4 - 016: 4 - 017: 4 - 018: 4 - 019: 4 - 020: 4 - 021: 4 - 022: 4 - 023: 4 - 024: 4 - 025: 4 - 026: 4 - 027: 4 - 028: 4 - 029: 4 - 030: 4 - 031: 4 - 032: 4 - 033: 4 - 034: 4 - 035: 4 - 036: 5 - 001: 5 - 002: 5 - 003: 5 - 004: 5 - 005: 5 - 006: 5 - 007: 5 - 008: 5 - 009: 5 - 010: 5 - 011: 5 - 012: 5 - 013: 5 - 014: 3 - 014: 3 - 015:"

Name of Financial Institution Branch Address Contact Name Contact Telephone Contact Email Any reference to “Company” in this form includes the Main Insured and any Additional Insured covered under the Policy and for the purpose of this Direction to Pay, the Company is acting on its own behalf and on behalf of any Additional Insured under the Policy. On behalf of my Company: 1. I direct EDC to pay directly to the Financial Institution indicated above, any monies that are now payable or that may become payable to my Company under the Policy (including any recoveries), in respect of the following Buyer or Buyers: , with offices located at 2. I understand that, immediately following the date that this Direction to Pay is noted in EDC’s records, EDC may provide the Financial Institutions with all information and documents concerning the Policy which is also available to my Company, including information and documents concerning my Company’s compliance with the terms and conditions of the Policy, its termination or default thereunder, Credit Approvals, overdue reports and losses and claims. I consent to such disclosure and I agree to EDC using any technology as EDC may choose from time to time for the purposes of providing any of that information to the Financial Institutions; PORTFOLIO CREDIT INSURANCE DIRECTION TO PAY (SPECIFIC BUYERS) (EXPORT POLICY) This Direction to Pay is given in connection with Export Portfolio Credit Insurance Policy No. (the “Policy”) issued by EXPORT DEVELOPMENT CANADA (“EDC”) to (the “Main Insured”). Terms defined in the Policy have the same meaning when used in this Direction to Pay. Once processed by EDC, this Direction to Pay will be sent by email to the Main Insured and the Financial Institution identified below. FINANCIAL INSTITUTION DETAILS Page 1 of 2 (Buyer name) (Street/City/Province/Country/Postal Code) 3. I acknowledge that, if any of the information disclosed to the Financial Institution in conformity with this Direction to Pay is considered “personal information” as defined by the Privacy Act, it will only be disclosed in compliance with the Privacy Act; and 4. I acknowledge that this Direction to Pay cannot be revoked without the written consent of the Financial Institution. This Direction to Pay is not an assignment of the Policy and does not give the Financial Institution any right against EDC whatsoever (including the right to file a claim or sue under the Policy). EDC reserves the right to set-off any amount payable under the Policy or this Direction to Pay against any other amount owed to EDC by the Company or by the Financial Institution. This Direction to Pay will apply to the Policy as it may be renewed, extended or amended from time to time. Main Insured Name Authorized Signature Date This Direction to Pay has been noted in EDC’s records on . EXPORT DEVELOPMENT CANADA By Name Title Page 2 of 2Direction to Pay (Specific Buyers) (Export Policy) | XEP010-1122 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 001: 1 - 002 -: 1 - 004: 1 - 005: 1 - 006: 1 - 007: 1 - 008: 1 - 009: 1 - 010: 2 - 001: 2 - 002: 2 - 003: 2 - 004: 2 - 005: 2 - 006: 2 - 007:"

How to request or change a direction to pay Credit insurance help & support A Direction to Pay (DTP) is a legal document. It’s a contract through which you can appoint a third party (usually a bank or financial institution) as the beneficiary (also called an assignee) under your policy. In the event of a claim, EDC will pay this beneficiary directly, rather than you. This DTP includes language where you consent to EDC sharing information about you and your policy with the beneficiary. EDC needs this consent to share your information and communicate with the beneficiary. Once the DTP is set up, we will be able to answer inquiries from your beneficiary about your coverage. The full terms and conditions are set out in the DTP. The online form is our standard general Direction to Pay agreement. If this agreement does not meet your needs, click on the Other Assignee Forms hyperlink, which can be found if you click on the “Manage Financial Institutions” button and go to the bottom of that form. This will bring you to a list of other beneficiary forms. Your completed form(s) must be sent to support@edc.ca. *Please note the following special case: If you wish to assign all proceeds payable under your policy to a member of the “Mouvement des Caisses Desjardins”, you will need to choose one of these two forms: Export Policy (PDF) or Domestic Policy (PDF). To set up a DTP: 1. Click on the Manage menu and select Manage Policy, then click on the Policy List tab. 2. Highlight the policy to which you want to add a Direction to Pay. Note: If you have both an export and a domestic policy, you will need to complete a separate application for each. 3. Click on the Manage Financial Institutions button. Adding a Direction To Pay is considered a policy change or mid-term adjustment. If any other mid-term adjustment is in progress for that policy, the Manage Financial Institutions button will not be accessible. 4. In the Request Direction to Pay form that appears, complete all the required fields. Review the legal information and attach any relevant files by clicking on Attach Files. 5. If this DTP agreement does not meet your needs and you are looking for a different type of DTP, click on the Other Assignee Forms hyperlink, which will bring you to a list of other beneficiary forms. 6. Once you have completed the form, click on the Submit button. 7. The request is now captured in the Modification History tab, available from the View menu by selecting Manage Policy. To view a PDF copy of the DTP form, click on the paperclip icon in the Files column. Note: If you requested a Direction to Pay for both an export and a domestic policy, there will be a separate PDF copy for each policy. Managing beneficiary contacts Once a policy has a Direction To Pay or Tripartite agreement in place, you can view all assigned financial institution contacts, and request changes to those contacts through the portal by following these steps: 1. Click on the Manage menu and select Manage Policy, then click on the Policy List tab. 2. Highlight the policy to which you want to view or change the beneficiary for and click Policy Details. All beneficiaries the for policy (both full and selective) will be listed under the Policy Terms column. Note: If you have both an export and a domestic policy, you will need to manage beneficiary contacts for each policy individually. To request a change for any listed beneficiaries click on Change Assignee Contact Complete the fields in the popup window and click Submit. Please allow up to 2 business days for the request to be processed. Changing your financial institution You cannot remove or change the beneficiary of your DTP without the beneficiary’s consent. If you need to change the financial institution on your DTP, you and your existing financial institution must complete the Consent to the Revocation form and submit it to support@edc.ca. Once the Consent to the Revocation form is completed, you can follow the steps for adding a DTP to complete the change of financial institution. Date modified: 2024-07-19"

The Trade Commissioner’s Service (TCS) provides a step-by-step guide to exporting.

• Step 8 covers identifying your export financing requirements, outlines letters of credit and how they work in practice.

ICC Academy’s  Comprehensive Guide to Standby Letters of Credit (2021) explains how and why standby letters of credit are used, as well as the risks and benefits for consideration.

Additional resources

• Commercial letters of credit | Business Development Bank of Canada (BDC)
• 8 tips for getting paid with a letter of credit | Shipping Solutions

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(the “Main Insured”). Terms defined in the Policy have the same meaning when used in this Direction to Pay. Once processed, this Direction to Pay will be sent by email to the Main Insured and the Financial Institution identified below. FINANCIAL INSTITUTION DETAILS Name of Financial Institution Branch Address Contact Name Contact Telephone Contact Email Any reference to “Company” in this form includes the Main Insured and any Additional Insured covered under the Policy and for the purpose of this Direction to Pay, the Company is acting on its own behalf and on behalf of any Additional Insured under the Policy. On behalf of my Company: 1. I direct the Insurers to pay directly to the Financial Institution indicated above, any monies that are now payable or that may become payable to my Company under the Policy (including any recoveries), in respect of the following Buyer or Buyers: , with offices located at 2. I understand that, immediately following the date that this Direction to Pay is noted in the Insurers’ records, the Insurers may provide the Financial Institutions with all information and documents concerning the Policy which is also available to my Company, including information and documents concerning my Company’s compliance with the terms and conditions of the Policy, its termination or default thereunder, Credit Approvals, overdue reports and losses and claims. I consent to such disclosure and I agree to the Insurers using any technology as the Insurers may choose from time to time for the purposes of providing any of that information to the Financial Institutions; 3. I acknowledge that, if any of the information disclosed to the Financial Institution in conformity with this Direction to Pay is considered “personal information” as defined by the Privacy Act, it will only be disclosed in compliance with the Privacy Act; and 4. I acknowledge that this Direction to Pay cannot be revoked without the written consent of the Financial Institution. PORTFOLIO CREDIT INSURANCE DIRECTION TO PAY (SPECIFIC BUYERS) (DOMESTIC POLICY) This Direction to Pay is given in connection with Domestic Portfolio Credit Insurance Policy No. (the “Policy”) issued by the Insurers identified in the Coverage Certificate to Page 1 of 2 (Buyer name) (Street/City/Province/Country/Postal Code) This Direction to Pay is not an assignment of the Policy and does not give the Financial Institution any right against the Insurers whatsoever (including the right to file a claim or sue under the Policy). The Insurers reserve the right to set-off any amount payable under the Policy or this Direction to Pay against any other amount owed to the Insurers by the Company or by the Financial Institution. This Direction to Pay will apply to the Policy as it may be renewed, extended or amended from time to time. Main Insured Name Authorized Signature Date This Direction to Pay has been noted in EDC’s records on . EXPORT DEVELOPMENT CANADA, on behalf of the Insurers By Name Title Page 2 of 2Direction to Pay (Specific Buyers) (Domestic Policy) | DEP010-1122 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 002: 1 - 003: 1 - 004: 1 - 005: 1 - 006: 1 - 007: 1 - 008: 1 - 009: 1 - 010: 2 - 001: 2 - 002: 2 - 003: 2 - 004: 2 - 005: 2 - 006: 2 - 007:"

Name of Financial Institution Branch Address Contact Name Contact Telephone Contact Email FINANCIAL INSTITUTION DETAILS Name of Financial Institution Branch Address Contact Name Contact Telephone Contact Email Any reference to “Company” in this form includes the Main Insured and any Additional Insured covered under the Policy and for the purpose of this Direction to Pay, the Company is acting on its own behalf and on behalf of any Additional Insured under the Policy. On behalf of my Company: 1. I direct the Insurers to pay directly to the Financial Institutions indicated above, any monies that are now payable or that may become payable to my Company under the Policy (including any recoveries), provided that, as a condition precedent of any payment by the Insurers to the Financial Institutions, the Financial Institutions will agree as to each of their respective interests in the payments and each of them must advise the Insurers in writing of their agreement; PORTFOLIO CREDIT INSURANCE DIRECTION TO PAY (MULTIPLE FINANCIAL INSTITUTIONS) (DOMESTIC POLICY) This Direction to Pay is given in connection with Domestic Portfolio Credit Insurance Policy No. (the "Policy") issued by the Insurers identified in the Coverage Certificate to (the “Main Insured”). Terms defined in the Policy have the same meaning when used in this Direction to Pay. Once processed, this Direction to Pay will be sent by email to the Main Insured and the Financial Institutions identified below. FINANCIAL INSTITUTION DETAILS Page 1 of 2 2. I understand that, immediately following the date that this Direction to Pay is noted in the Insurers’ records, the Insurers may provide the Financial Institutions with all information and documents concerning the Policy which is also available to my Company, including information and documents concerning my Company’s compliance with the terms and conditions of the Policy, its termination or default thereunder, Credit Approvals, overdue reports and losses and claims. I consent to such disclosure and I agree to the Insurers using any technology as the Insurers may choose from time to time for the purposes of providing any of that information to the Financial Institutions; 3. I acknowledge that, if any of the information disclosed to the Financial Institutions in conformity with this Direction to Pay is considered “personal information” as defined by the Privacy Act, it will only be disclosed in compliance with the Privacy Act and; 4. I acknowledge that this Direction to Pay cannot be revoked without the written consent of the Financial Institutions. This Direction to Pay is not an assignment of the Policy and does not give the Financial Institutions any right against the Insurers whatsoever (including the right to file a claim or sue under the Policy). The Insurers reserve the right to set-off any amount payable under the Policy or this Direction to Pay against any other amount owed to the Insurers by the Company or by the Financial Institutions. This Direction to Pay will apply to the Policy as it may be renewed, extended or amended from time to time. Main Insured Name Authorized Signature Date This Direction to Pay has been noted in the Insurers’ records on . EXPORT DEVELOPMENT CANADA, on behalf of the insurers By Name Title Page 2 of 2Direction to Pay (Multiple Financial Institutions) (Domestic Policy) | DEP003-1122 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 001: 1 - 002: 1 - 003: 1 - 004: 1 - 005: 1 - 006: 1 - 007: 1 - 008: 1 - 009: 1 - 010: 1 - 011: 1 - 012: 2 - 001: 2 - 002: 2 - 003: 2 - 004: 2 - 005: 2 - 006: 2 - 007:"

D&B is the most used credit reporting agency in North America, so it's possible that your suppliers and customers may check your report.

It's important to stay on top of the data in your report because errors can occur, resulting in a negative rating through no fault of your own. For example, a supplier could erroneously report the payment terms they offered your company were shorter than the contract indicates (i.e., a 30-day instead of 90-day term). This type of administrative oversight would reflect negatively on the D&B report, and show payment was 60 days late––a red flag to others checking the report.

Besides payment information, it's also important to validate other key information on the credit report such as legal action, security registrations, and ownership information. Ensuring the information is up to date will help keep your suppliers informed, engaged, and satisfied.

Additional resources

• EDC Company InSight | Export Development Canada (EDC)
• Rewards & risks of export payment terms | EDC

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This tripartite agreement (the “Agreement”) is made as of the day of , 20 , among the Insurers identified in the Coverage Certificate (the “Insurers”), (the “Main Insured”) and (the “Financial Institution”). 1. The Insurers have issued Domestic Portfolio Credit Insurance Policy No. to the Main Insured (the “Policy”), a copy of which, together with any amendments, has been made available to the Financial Institution by the Main Insured. Capitalized terms not defined in this Agreement have the meaning set out in the Policy. 2. The Financial Institution intends to purchase certain of the accounts receivable that are insured under the Policy and requires that the Main Insured, or any Additional Insured under the Policy, as applicable, assign to the Financial Institution their rights under the Policy with respect to these accounts receivable. In this Agreement, the “Insured” means the Main Insured and any Additional Insured under the Policy. 3. The Insured may assign to the Financial Institution the Insured’s rights under the Policy with respect to any Sold Accounts. For the purposes of this Agreement, “Sold Accounts” means those accounts receivable of the Insured that (i) are insured under the Policy, (ii) are sold to the Financial Institution and (iii) relate to Buyers listed in a form attached as Schedule “A” (there may be more than one Schedule “A” created in connection with the Agreement and each of these will form part of this Agreement). Any amount payable by the Insurers under the Policy pursuant to a claim for Loss with respect to any Sold Account(s) will be paid to the Financial Institution. 4. The Main Insured, on its own behalf and on behalf of any Additional Insured (if applicable): (i) understands that, immediately following the date that this Agreement is noted in the Insurers’ records, the Insurers may provide to the Financial Institution all information and documents concerning the Policy which is also available to the Insured, including information and documents related to Credit Approvals, declarations of sales (if applicable), losses and claims and termination of the Policy, as well as information concerning the Insured’s compliance with the terms and conditions of the Policy or default thereunder (including overdue reports), and consents to this disclosure and, further, agrees to the Insurers using any technology as the Insurers may choose from time to time for the purposes of providing any of that information to the Financial Institution; and (ii) acknowledges that, if any of the information disclosed to a Financial Institution in conformity with this Agreement is considered “personal information” as defined by the Privacy Act, it will only be disclosed in compliance with the Privacy Act. 5. Regardless of the Insurers’ approval of the assignment of the Insured’s rights under the Policy with respect to any Sold Account(s), and as a condition of the Insurers paying any claim for Loss to the Financial Institution: (a) the Insured, its representative, or the Financial Institution on behalf of the Insured, must continue to perform and carry out all the obligations and duties of the Insured pursuant to the Policy relating to the Sold Account(s); (b) the Insurers must receive evidence satisfactory to the Insurers that the Financial Institution has purchased the Sold Account(s) in respect of which the claim has been submitted; and (c) the Financial Institution must, at the Insurers’ request, transfer and assign the Sold Account(s) to the Insurers or to the Insured. PORTFOLIO CREDIT INSURANCE TRIPARTITE AGREEMENT FOR SOLD ACCOUNTS (SPECIFIC BUYERS) (DOMESTIC POLICY) Page 1 of 3Tripartite Agreement for Sold Accounts (Specific Buyers) (Domestic Policy) | DEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 6. (a) The Insurers do not warrant the performance of the Insured under its contracts of sale or under the Policy and it is therefore the Financial Institution’s responsibility to ensure that the Insured will carry out its obligations under its contracts of sale and under the Policy. (b) The Insurers’ only obligations to the Insured and the Financial Institution under the Policy are as set out in the Policy and this Agreement. (c) Any applicable maximum liability amount(s), as set out in the Policy, and all Credit Limits applicable to individual Buyers, continue to apply to Sold Account(s). (d) The Financial Institution will not be in a better position with respect to coverage under the Policy than the Insured would have been if the account receivable had not been sold to the Financial Institution. Regardless of the preceding sentence, it is agreed and understood that amounts that may be owed by the Insured to the Insurers under the Policy will not be deducted from the amount of any claim payment for Loss with respect to any Sold Account(s) otherwise determined by the Insurers to be payable to the Financial Institution as per this Agreement and in accordance with the “Calculation of Loss Amount” section of the Policy and any other applicable terms and conditions of the Policy. The Main Insured, on its behalf and on behalf of any Additional Insured under the Policy, hereby understands and acknowledges that the above in no way limits the Insurers’ right to seek payment from the Insured of any such amounts owing by the Insured to the Insurers. (e) The Financial Institution must provide the Insurers with all the documentation and information that the Insurers normally require from the Insured when submitting a claim to the Insurers, if the Insured fails to do so. (f) If the Insurers pay a claim for Loss with respect to a Sold Account, the Financial Institution’s right of recourse against the Insured in respect of the Sold Account will be restricted to the uninsured portion of the Sold Account and the amount of any applicable unpaid default interest together with any unpaid default interest on the insured portion of the Sold Account from the date of default to the date of payment by the Insurers. If the Insurers refuse to pay a claim with respect to a Sold Account, the Financial Institution’s right of recourse will be unrestricted. 7. Neither the assignment of the Insured’s rights under the Policy to the Financial Institution nor anything in this Agreement limits the Insurers’ rights as insurers. 8. This Agreement may be executed in counterparts and all counterparts constitute one and the same agreement. 9. This Agreement will be binding upon the parties to this Agreement and their respective successors and permitted assigns. This Agreement is not assignable except with the prior written consent of the Insurers. Page 2 of 3Tripartite Agreement for Sold Accounts (Specific Buyers) (Domestic Policy) | DEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca The parties to this Agreement have caused this Agreement to be duly executed by their respective authorized signatories as of the day and year first above written. EXPORT DEVELOPMENT CANADA, on behalf of the Insurers By Name Title By Name Title NAME OF MAIN INSURED, on its own behalf and on behalf of any Additional Insured under the Policy (if any) By Name Title NAME OF FINANCIAL INSTITUTION By Name Title Page 3 of 3Tripartite Agreement for Sold Accounts (Specific Buyers) (Domestic Policy) | DEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca Email TRIPARTITE AGREEMENT FOR SOLD ACCOUNTS (SPECIFIC BUYERS) (DOMESTIC POLICY) SCHEDULE A This Schedule is pursuant to the provisions of a Tripartite Agreement for Sold Accounts dated the day of , 20 (the “Agreement”) entered into by the Insurers identified in the Coverage Certificate (the “Financial Institution”), and (the “Main Insured”). Name & Address of Buyer Credit Limit Approved by the Insurers Date Amount Maximum Terms NAME OF MAIN INSURED, on its own behalf and on behalf of any Additional Insured under the Policy (if any) Signed this day of , 20 . By Name Title Page 1 of 2Schedule A – Tripartite Agreement for Sold Accounts (Specific Buyers) (Domestic Policy) | DEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca NAME OF FINANCIAL INSTITUTION Signed this day of , 20 . By Name Title The Insurers hereby confirm that as of the date noted below, the Credit Limit amounts and terms shown above are the amounts and terms approved by the Insurers, and the Insurers acknowledge that as at that date, they are not aware of any default by the Insured under the provisions of Policy No. , which would invalidate coverage under the Policy with respect to the above accounts. EXPORT DEVELOPMENT CANADA, on behalf of the Insurers Signed this day of , 20 . By Name Title Page 2 of 2Schedule A – Tripartite Agreement for Sold Accounts (Specific Buyers) (Domestic Policy) | DEP007-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 001: 1 - 002: 1 - 003: 1 - 004: 1 - 005: 1 - 006: 3 - 001: 3 - 002: 3 - 003: 3 - 004: 3 - 005: 3 - 006: 3 - 007: 3 - 008: 3 - 009: 3 - 010: 3 - 011: 3 - 012: 3 - 013: 4 - 001: 4 - 002: 4 - 003: 4 - 004: 4 - 005: 4 - 006: 4 - 007: 4 - 008: 4 - 009: 4 - 010: 4 - 011: 4 - 012: 4 - 013: 4 - 014: 4 - 015: 4 - 016: 4 - 017: 4 - 018: 4 - 019: 4 - 020: 4 - 021: 4 - 022: 4 - 023: 4 - 024: 4 - 025: 4 - 026: 4 - 027: 4 - 028: 4 - 029: 4 - 030: 4 - 031: 4 - 032: 4 - 033: 4 - 034: 4 - 035: 4 - 036:"

on behalf of any Additional Insured under the Policy (if any) Signed this day of , 20 . By Name Title NAME OF FINANCIAL INSTITUTION Signed this day of , 20 . By Name Title EDC hereby confirms that as of the date noted below, the Credit Limit amounts and terms shown above are the amounts and terms approved by EDC, and EDC acknowledges that as at that date, it is not aware of any default by the Insured under the provisions of Policy No. , which would invalidate coverage under the Policy with respect to the above accounts. EXPORT DEVELOPMENT CANADA Signed this day of , 20 . By Name Title Page 2 of 2 Schedule A – Tripartite Agreement for Sold Accounts (Specific Accounts) (Export Policy) | XEP005-0623 EXPORT DEVELOPMENT CANADA | EXPORTATION ET DÉVELOPPEMENT CANADA 150 Slater, Ottawa, ON K1A 1K3 | T: 1.866.716.7201 E: support@edc.ca 1 - 001: 1 - 002: 1 - 003: 1 - 004: 1 - 005: 1 - 006: 3 - 001: 3 - 002: 3 - 003: 3 - 004: 3 - 005: 3 - 006: 3 - 007: 3 - 008: 3 - 009: 3 - 010: 3 - 011: 3 - 012: 3 - 013: 4 - 001: 4 - 002: 4 - 003: 4 - 004: 4 - 005: 4 - 006: 4 - 007: 4 - 008: 4 - 009: 4 - 010: 4 - 011: 4 - 012: 4 - 013b: 4 - 014: 4 - 015: 4 - 016: 4 - 017: 4 - 018: 4 - 019: 4 - 020: 4 - 021b: 4 - 022: 4 - 023: 4 - 024: 4 - 025: 4 - 026: 4 - 027: 4 - 028: 4 - 029b: 4 - 030: 4 - 031: 4 - 032: 4 - 033: 4 - 034: 4 - 035: 4 - 036: 4 - 037b: 4 - 038: 4 - 039: 4 - 040: 4 - 041: 4 - 042: 4 - 043: 4 - 044: 4 - 045b: 5 - 001: 5 - 002: 5 - 003: 5 - 004: 5 - 005: 5 - 006: 5 - 007: 5 - 008: 5 - 009: 5 - 010: 5 - 011: 5 - 012: 5 - 013: 5 - 014: 5 - 015: 5 - 016: 5 - 017: 5 - 018: 5 - 019: 5 - 020: 5 - 021: 3 - 014: 3 - 015:"

housing ☐ Employment generation (through SME financing and microfinance) 65 Renewable Energy, Energy Efficiency, Pollution Prevention and Waste Management, Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean Transportation, Sustainable Water and Wastewater Management, Climate Change Adaptation, Circular Economy Adapted Products, Production Technologies and Processes and Green Building and Infrastructure, Carbon Capture Utilization and Storage (CCUS), Low-Carbon Intensity Fuels, Affordable Basic Infrastructure, Access to Health, Women-Owned, Women-Led Businesses and Community Lending, Indigenous Peoples-Owned and Indigenous Peoples-Led Business and Community Lending, Black and Racialized Business and Community Lending, LGBTQ2S+ Business and Community Lending and Business and Community Lending to Support Individuals with Disabilities Second-Party Opinion: EDC Sustainable Bond Framework 23 ☐ Food security ☐ Socioeconomic advancement and empowerment ☐ Unknown at issuance but currently expected to conform with SBP categories, or other eligible areas not yet stated in SBP ☒ Other (please specify): Women-Owned, Women- Led Business and Community Lending, Indigenous Peoples-Owned and Indigenous Peoples-Led Business and Community Lending, Black and Racialized Business and Community Lending, LGBTQ2S+ Business and Community Lending, Business and Community Lending to Support Individuals with Disabilities If applicable please specify the social taxonomy, if other than SBP: 2. PROCESS FOR PROJECT EVALUATION AND SELECTION Overall comment on section (if applicable): EDC’s internal process in evaluating and selecting projects is to be managed by the Sustainable Bond Working Group. EDC has an environmental and social risk management process in place aligned with the credit risk management framework outline in the Equator Principles, applicable to all transactions and exposures. Sustainalytics considers the project selection process in line with market practice. Evaluation and selection ☒ Credentials on the issuer’s social and green objectives ☒ Documented process to determine that projects fit within defined categories ☒ Defined and transparent criteria for projects eligible for Sustainability Bond proceeds ☒ Documented process to identify and manage potential ESG risks associated with the project ☐ Summary criteria for project evaluation and selection publicly available ☐ Other (please specify): Information on Responsibilities and Accountability ☒ Evaluation / Selection criteria subject to external advice or verification ☐ In-house assessment ☐ Other (please specify): 3. MANAGEMENT OF PROCEEDS Overall comment on section (if applicable): EDC’s processes for management of proceeds are overseen by its Treasury and Loans Services department. EDC intends to allocate proceeds within 24 months after any issuance. Unallocated proceeds will be held in accordance with EDC’s liquidity policies. This is in line with market practice. Second-Party Opinion: EDC Sustainable Bond Framework 24 Tracking of proceeds: ☒ Sustainability Bond proceeds segregated or tracked by the issuer in an appropriate manner ☒ Disclosure of intended types of temporary investment instruments for unallocated proceeds ☐ Other (please specify): Additional disclosure: ☐ Allocations to future investments only ☒ Allocations to both existing and future investments ☐ Allocation to individual disbursements ☒ Allocation to a portfolio of disbursements ☒ Disclosure of portfolio balance of unallocated proceeds ☐ Other (please specify): 4. REPORTING Overall comment on section (if applicable): EDC intends to report on allocation and impact of proceeds on its website on an annual basis in its Integrated Annual Report until full allocation. Sustainalytics views the allocation and impact reporting as aligned with market practice. Use of proceeds reporting: ☐ Project-by-project ☒ On a project portfolio basis ☐ Linkage to individual bond(s) ☐ Other (please specify): Information reported: ☒ Allocated amounts ☐ Sustainability Bond financed share of total investment ☐ Other (please specify): Frequency: ☒ Annual ☐ Semi-annual ☐ Other (please specify): Second-Party Opinion: EDC Sustainable Bond Framework 25 Impact reporting: ☐ Project-by-project ☒ On a project portfolio basis ☐ Linkage to individual bond(s) ☐ Other (please specify): Information reported (expected or ex-post): ☒ GHG Emissions / Savings ☒ Energy Savings ☒ Decrease in water use ☒ Number of beneficiaries ☒ Target populations ☐ Other ESG indicators (please specify): Frequency: ☒ Annual ☐ Semi-annual ☐ Other (please specify): Means of Disclosure ☒ Information published in financial report ☐ Information published in sustainability report ☐ Information published in ad hoc documents ☐ Other (please specify): ☐ Reporting reviewed (if yes, please specify which parts of the reporting are subject to external review): Where appropriate, please specify name and date of publication in the useful links section. USEFUL LINKS (e.g. to review provider methodology or credentials, to issuer’s documentation, etc.) SPECIFY OTHER EXTERNAL REVIEWS AVAILABLE, IF APPROPRIATE Type(s) of Review provided: ☐ Consultancy (incl. 2nd opinion) ☐ Certification ☐ Verification / Audit ☐ Rating ☐ Other (please specify): Review provider(s): Date of publication: Second-Party Opinion: EDC Sustainable Bond Framework 26 ABOUT ROLE(S) OF REVIEW PROVIDERS AS DEFINED BY THE GBP AND THE SBP i. Second-Party Opinion: An institution with sustainability expertise that is independent from the issuer may provide a Second- Party Opinion. The institution should be independent from the issuer’s adviser for its Sustainability Bond framework, or appropriate procedures such as information barriers will have been implemented within the institution to ensure the independence of the Second-Party Opinion. It normally entails an assessment of the alignment with the Principles. In particular, it can include an assessment of the issuer’s overarching objectives, strategy, policy, and/or processes relating to sustainability and an evaluation of the environmental and social features of the type of Projects intended for the Use of Proceeds. ii. Verification: An issuer can obtain independent verification against a designated set of criteria, typically pertaining to business processes and/or sustainability criteria. Verification may focus on alignment with internal or external standards or claims made by the issuer. Also, evaluation of the environmentally or socially sustainable features of underlying assets may be termed verification and may reference external criteria. Assurance or attestation regarding an issuer’s internal tracking method for use of proceeds, allocation of funds from Sustainability Bond proceeds, statement of environmental or social impact or alignment of reporting with the Principles may also be termed verification. iii. Certification: An issuer can have its Sustainability Bond or associated Sustainability Bond framework or Use of Proceeds certified against a recognised external sustainability standard or label. A standard or label defines specific criteria, and alignment with such criteria is normally tested by qualified, accredited third parties, which may verify consistency with the certification criteria. iv. Green, Social and Sustainability Bond Scoring/Rating: An issuer can have its Sustainability Bond, associated Sustainability Bond framework or a key feature such as Use of Proceeds evaluated or assessed by qualified third parties, such as specialised research providers or rating agencies, according to an established scoring/rating methodology. The output may include a focus on environmental and/or social performance data, process relative to the Principles, or another benchmark, such as a 2-degree climate change scenario. Such scoring/rating is distinct from credit ratings, which may nonetheless reflect material sustainability risks. Second-Party Opinion: EDC Sustainable Bond Framework 27 Disclaimer Copyright ©2022 Sustainalytics. All rights reserved. The information, methodologies and opinions contained or reflected herein are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data), and may be made available to third parties only in the form and format disclosed by Sustainalytics, or provided that appropriate citation and acknowledgement is ensured. They are provided for informational purposes only and (1) do not constitute an endorsement of any product or project; (2) do not constitute investment advice, financial advice or a prospectus; (3) cannot be interpreted as an offer or indication to buy or sell securities, to select a project or make any kind of business transactions; (4) do not represent an assessment of the issuer’s economic performance, financial obligations nor of its creditworthiness; and/or (5) have not and cannot be incorporated into any offering disclosure. These are based on information made available by the issuer and therefore are not warranted as to their merchantability, completeness, accuracy, up-to-dateness or fitness for a particular purpose. The information and data are provided “as is” and reflect Sustainalytics` opinion at the date of their elaboration and publication. Sustainalytics accepts no liability for damage arising from the use of the information, data or opinions contained herein, in any manner whatsoever, except where explicitly required by law. Any reference to third party names or Third Party Data is for appropriate acknowledgement of their ownership and does not constitute a sponsorship or endorsement by such owner."

EDC products can help you gain confidence in your business dealings and minimize risk, helping you grow your business. They include:

EDC Credit Insurance: As a young company, every penny counts. With our credit insurance, we can help you better mitigate your risks. Our insurance can help you protect your receivables when exporting and protect you from losing out on revenue if you don’t get paid for orders. This way, you can secure your orders and concentrate on growing your business with confidence.

Export Guarantee Program: Through this program, we work with your bank to increase your line of credit by providing guarantees to your bank on the term loan. With easier access to capital,  you can focus on growing your company more quickly.

Surety bonds: This program can help minimize the barriers to opportunity by providing coverage for many surety requirements and can help you get improved access to contract or performance bonds with surety bonds.

Additional resources

• The global impact of cleantech exporters: How five companies are raising the bar | EDC
• Cleantech Export Week 2022 | EDC
• Canada’s Cleantech Future | EDC
• EDC helps Canadian cleantech go global | EDC
• Clean technologies | Trade Commissioner Service (TCS)

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include $51.3 million of salaries and benefits (2023 - $55.2 million), $7.7 million of system costs (2023 - $9.1 million), and $1.9 million of professional services (2023 - $2.0 million). CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUARTERLY FINANCIAL REPORT 25 9. Contingent Liabilities As explained on page 133 of the 2023 Integrated Annual Report, we are subject to a limit imposed by the Export Development Act on our contingent liability arrangements. The limit is currently $90.0 billion and our position against this limit is $43.2 billion as at September 30, 2024 (December 2023 - $40.5 billion). 10. Financial Instrument Risks The principal risks that we are exposed to as a result of holding financial instruments are credit, market and liquidity risk. For a full description of our objectives, policies and processes for managing financial instrument risk refer to management’s discussion and analysis on pages 108 to 112 and notes related to our derivative instruments and debt instruments on pages 102 to 103 of the 2023 Integrated Annual Report. Credit Risk Credit risk is the risk of loss incurred if a counterparty fails to meet its financial commitments. We are exposed to credit risk on financial instruments under both our loans program and our treasury activities. Concentration of Credit Risk The following table provides a breakdown, by the country in which the risk resides, of the maximum exposure to credit risk of financial instruments. The exposure includes gross loans receivable, loan guarantees, investments, marketable securities, derivative assets, cash and cash equivalents. The concentration of credit risk exposure provided below also includes the impact of unfunded loan participations and loan default insurance, which we use to mitigate credit risk within the loan portfolio. Sep Dec 2024 2023 (in millions of Canadian dollars) Exposure Exposure Country $ % $ % United States 17,869 22 17,760 23 Canada 15,644 20 14,439 18 Chile 8,290 10 7,580 10 United Kingdom 7,298 9 7,640 10 Australia 5,090 6 5,289 7 Brazil 2,506 3 1,352 2 Germany 2,410 3 2,598 3 India 2,377 3 2,274 3 Mexico 2,373 3 2,183 3 Spain 1,470 2 1,512 2 Other 14,618 19 15,324 19 Total $79,945 100 $77,951 100 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 26 EXPORT DEVELOPMENT CANADA The concentration of credit risk by sector for our financial instruments is as follows: Sep Dec 2024 2023 (in millions of Canadian dollars) Exposure Exposure Sector $ % $ % Commercial: Transportation and storage 13,538 17 13,954 18 Utilities 11,759 15 12,269 16 Manufacturing 11,423 14 9,673 12 Finance and insurance 10,201 13 10,017 13 Resources 8,059 10 7,588 10 Information 6,372 8 5,801 7 Wholesale and retail trade 3,036 4 3,381 4 Commercial properties 2,502 3 2,229 3 Professional services 1,723 2 2,073 3 Construction 735 1 799 1 Other 2,535 3 2,463 3 Total commercial 71,883 90 70,247 90 Sovereign 8,062 10 7,704 10 Total $79,945 100 $77,951 100 11. Related Party Transactions We enter into transactions with other government departments, agencies and Crown corporations and our Pension Plan in the normal course of business, under terms and conditions similar to those that apply to unrelated parties. In 2021, EDC’s subsidiary FinDev Canada received a $75.9 million Concessional Facility (CF) from Global Affairs Canada (GAC). The CF is an arrangement between GAC and FinDev Canada for the purpose of fulfilling the Government of Canada’s Gender Smart COVID-19 Recovery Facility. FinDev Canada will hold, manage, administer, use and invest the funds under the facility with related financial results reported to GAC and consolidated within the financial statements of the Government of Canada. EDC is the owner of trademarks and official marks. Any use of an EDC trademark or official mark without written permission is strictly prohibited. All other trademarks appearing in this document are the property of their respective owners. The information presented is subject to change without notice. EDC assumes no responsibility for inaccuracies contained herein. Copyright © 2024 Export Development Canada. All rights reserved."

REVIEW OF ENVIRONMENTAL & SOCIAL RISK MANAGEMENT POLICIES Discussion Paper January 2022 Review of Environmental & Social Risk Management Policies | Discussion Paper | January 2022 1 CONTENTS EXECUTIVE SUMMARY .........................................................................................................................................2 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PRACTICES AT EDC ............................................................................2 ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT REVIEW ..............................................................................................2 ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT POLICY ..............................................................................4 BACKGROUND ..........................................................................................................................................................4 KEY THEMES FOR REVIEW ...........................................................................................................................................4 QUESTIONS .............................................................................................................................................................5 CLIMATE CHANGE POLICY ....................................................................................................................................6 BACKGROUND ..........................................................................................................................................................6 KEY THEMES FOR REVIEW ...........................................................................................................................................6 QUESTIONS .............................................................................................................................................................7 ENVIRONMENTAL AND SOCIAL RISK DIRECTIVE ..................................................................................................8 BACKGROUND ..........................................................................................................................................................8 KEY THEMES FOR REVIEW ...........................................................................................................................................8 QUESTIONS .............................................................................................................................................................9 HUMAN RIGHTS POLICY .................................................................................................................................... 10 BACKGROUND ....................................................................................................................................................... 10 KEY THEMES FOR REVIEW ........................................................................................................................................ 10 QUESTIONS .......................................................................................................................................................... 11 TRANSPARENCY AND DISCLOSURE POLICY ....................................................................................................... 11 BACKGROUND ....................................................................................................................................................... 12 KEY THEMES FOR REVIEW ........................................................................................................................................ 12 QUESTIONS .......................................................................................................................................................... 13 Review of Environmental & Social Risk Management Policies | Discussion Paper | January 2022 2 EXECUTIVE SUMMARY Export Development Canada (EDC) is a Canadian financial Crown Corporation and Canada’s export credit agency. EDC is dedicated to working with Canadian companies as they grow their businesses abroad. We equip Canadian companies with trade knowledge, and provide financing solutions, equity, insurance, and international connections. We also support Canadian direct investment abroad and international investment into Canada. Much of our business is done in partnership with other financial institutions and through collaboration with our Government of Canada counterparts. Underlying our support is a commitment to sustainable and responsible business, ensuring we help Canadian companies become internationally recognized as leaders in sustainability and responsibility. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PRACTICES AT EDC EDC is committed to conducting our business in a responsible and sustainable manner, underpinned by a foundation of strong ESG principles and practices. Our organization’s approach to ESG is focused on four priority areas: ensuring our operations protect the environment and people; conducting our business with the highest level of integrity; building a supportive and inclusive workplace, and; contributing to the communities where we live and work. With a view of continually improving our performance, EDC has formed an ESG Advisory Council to provide guidance on our ESG practices. ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT REVIEW EDC conducts periodic reviews to guide the update of our Environmental and Social Risk Management (ESRM) Framework policies. The review process enables EDC to identify opportunities to better align the policies with our ESG practices, business activities, customer needs, and emerging environmental and social risk management best practice. The review process also enables EDC to reflect key developments to the international standards and obligations to which our policies are aligned, including the OECD Common Approaches and the Equator Principles. Importantly, the review process enables EDC to solicit stakeholder feedback and better understand the expectations of our diverse range of stakeholders. Ultimately, the aim of the review process for our environmental and social risk management policies is to ensure that EDC continues to deliver on our commitment to conducting our business in a responsible and sustainable manner. Invitation for Stakeholder Feedback During this review process, EDC invites stakeholders from across the Canadian trade and business ecosystems to offer input and constructive feedback on the following key policies under EDC’s Environmental and Social Risk Management Framework: 1. Environmental and Social Risk Management (ESRM) Policy 2. Climate Change Policy 3. Environmental and Social Review Directive (ESRD) 4. Human Rights Policy 5. Transparency and Disclosure Policy Review of Environmental & Social Risk Management Policies | Discussion Paper | January 2022 3 EDC is soliciting input from our stakeholders, who include but are not limited to, our customers, civil society organizations, Canadian industry associations, financial sector peers, and members of the Canadian public. As a Canadian crown corporation, wholly owned by the Government of Canada, we are aiming to ensure that our policies are revised with the interests and values of Canadians in mind. The periodic review of our policies presents an opportunity to ensure that our policies align with stakeholder expectations and reflect a broad range of perspectives, experiences, and innovative ideas. We invite stakeholders to review the policies and discussion papers and provide us with feedback. Submissions are welcomed through EDC’s website during a 96-day comment period from January 24, 2022- April 29, 2022. Relevant materials have been made available on our website, including the current version of the policies, FAQs, and a public comment submission form. In addition, EDC will consult representatives from the Government of Canada as well as our ESG Advisory Council. In line with our organization-wide commitment to transparency, stakeholder submissions will be posted to our website. When the updated policies are released, EDC will publish a Public Response Paper to summarize the main areas of feedback with a high-level description of how EDC has considered that feedback in the policy review outcomes. How to Provide Feedback Please visit the EDC website to submit written feedback to EDC by April 29, 2022. Alternatively, feedback may be provided through ESRMPolicyReview@edc.ca. Stakeholders who have questions or who wish to engage with EDC directly regarding this review process are encouraged to use this email address to get in touch. Thank you in advance for taking the time to provide EDC with your input. We look forward to receiving your feedback. Review of Environmental & Social Risk Management Policies | Discussion Paper | January 2022 4 ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT POLICY EDC is embarking on a review of its Environmental Social Risk Management (ESRM) Policy. This annex is intended to inform stakeholders’ understanding of the key issues, questions and proposals EDC is considering during the review. Interested stakeholders are invited to provide their input and feedback through EDC’s website or contact ESRMPolicyReview@edc.ca for more detail on ways to engage with us. BACKGROUND EDC’s overarching environmental and social commitments are set out in the ESRM Policy. EDC’s ESRM Policy was established in 2005 with the purpose of articulating our approach to environmental and social risk management, and how this approach guides decision making on transactions and customer relationships. Since then, the ESRM Policy has evolved with emerging best practice."

AND DOCUMENTATIONS Mexican customs law is very strict about the submission, preparation and accuracy of import documents, and errors can lead to large fines or even confiscation of the goods. In short, don’t try to do it yourself. 27EDC | Guide to doing business in Mexico | March 2023 7.3 IMPORT REGIMES Mexico has several “import regimes” whose tariff rates are affected by CUSMA qualifica- tions. Canadian exporters and Mexican affiliates of Canadian companies most often use the following regimes: Permanent imports These goods are intended to remain in Mexico. If they are made in Canada, they may be eligible under CUSMA for duty-free treatment or reduced duties when entering the country. To show that the goods qualify, you must provide a CUSMA certificate of origin for them. Tariff rates vary according to the merchandise. For CUSMA-qualified goods, the tariff (if any) is calculated on their FOB value. For unqualified goods, the tariff is calculated on their cost, insurance and freight (CIF) value. In addition to any tariffs, a VAT of 16% is also applied according to either the FOB or CIF, depending on the goods’ CUSMA status. Temporary imports Temporary imports are goods that are to be re-exported within six months and attract no duties, taxes or other fees, although they must comply with all other customs provisions. As discussed earlier, however, goods that are imported temporarily under the maquila- dora program for purposes of manufacture, transformation or repair, are subject to VAT at a rate of 16%. A company in this situation may be able to avoid the VAT by obtaining a certification stating that the imported goods will be used to manufacture products that will then be exported. To avoid potential problems, the company should obtain advice from a Mexican customs broker or consultant to help with the certification process. 7. CUSTOMS AND DOCUMENTATIONS To avoid potential problems, the company should obtain advice from a Mexican customs broker or consultant to help with the certification process. https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cusma-aceum/origin_procedures-procedures_origine.aspx?lang=eng 8SOLUTIONS FROM EDC EDC | Guide to doing business in Mexico | March 2023 28 29EDC | Guide to doing business in Mexico | March 2023 8.1 MANAGING RISKS EDC Credit Insurance With EDC Credit Insurance, 90% of your insured losses are covered against the risk of non-payment caused by a variety of events. Our credit insurance protects you against the risk of non-payment caused by an array of events, including customer bankruptcy or non-payment, contract cancellation, issues with currency conversion or transfer, and more. Whether you want the security of knowing a few or many of your sales are protected against non-payment, we have the credit insurance solution that’s right for you: • EDC Select Credit Insurance: If a customer doesn’t pay you, EDC will cover 90% of your insured losses. It is a short-term coverage only when you need it. • Portfolio Credit Insurance: Protect your profits with Portfolio Credit Insurance and, get covered for 90% of your insured losses if a customer doesn’t pay. It is an ongoing coverage for active exporters. Performance Security Insurance EDC will cover 95% of your insured losses if a customer wrongfully calls a letter of guarantee or if a call is triggered by you not being able to meet your obligations due to specific political risks. EDC provides many kinds of solutions for Canadian investors and exporters, including several Mexico- specific solutions for Canadian companies with Mexican affiliates. 8. SOLUTIONS FROM EDC https://www.edc.ca/en/solutions/insurance/credit-insurance.html https://www.edc.ca/en/solutions/insurance/credit-insurance/select-credit-insurance.html https://www.edc.ca/en/solutions/insurance/credit-insurance/portfolio-credit-insurance.html https://www.edc.ca/en/solutions/insurance/performance-security-insurance.html 30EDC | Guide to doing business in Mexico | March 2023 8.2 SECURING FINANCING Buyer Financing EDC can help you gain a competitive edge by providing buyer financing to your interna- tional customer and taking on the risk of non-payment for you. If you have a Mexican affiliate that requires financing for capital goods purchases, or if a Mexican customer needs cash to buy your products, EDC may be able to help by providing direct financing. Alternatively, EDC may be able to guarantee a loan to your Mexican buyer or affiliate through its partnerships with local financial institutions. Direct Lending EDC can offer direct financing to your company or your foreign affiliate through a secured loan. A loan can be made directly to your Canadian company in support of its international investment, or to your foreign affiliate, secured by the foreign assets. Get financing for the range of loans you need, including bilateral loans, club deals, or syndicated loans: • various lending structures are possible • EDC lending support is priced based on the level of risk and the market involved Structured and Project Finance Structured and Project Finance is designed specifically for limited recourse financing of long-term, capital intensive projects. EDC acts as a partner with international project sponsors to advise, arrange and underwrite financing. Structured and Project Finance support is for you if: • your project generates revenues of more than $50 million • you have export activities outside of Canada • you need structured financing in order to execute a large-scale global project in the extractive, power, utilities, infrastructure or industrial sector • your project clearly demonstrates economic benefits to Canada 8. SOLUTIONS FROM EDC https://www.edc.ca/en/solutions/financing/buyer-financing.html https://www.edc.ca/en/solutions/financing/direct-lending.html https://www.edc.ca/en/solutions/financing/structured-project-finance.html 31EDC | Guide to doing business in Mexico | March 2023 8.3 GROWING WORKING CAPITAL Export Guarantee Program EDC’s Export Guarantee Program can help your bank provide you with additional access to financing. We share the risk with your bank by providing a guarantee on the money you borrow, encouraging them to increase your access to working capital. Account Performance Security Guarantee Issue letters of guarantee without putting up cash or credit to your bank as collateral. EDC will provide a 100% guarantee to your bank for any bonds it posts on your behalf. Foreign Exchange Facility Guarantee Protect your margins with the Foreign Exchange Facility Guarantee, avoiding posting collateral as payment assurance for your foreign exchange contract provider and keep your cash free for doing business. Surety Bonds Encourage your surety company to provide you with the bonding capacity you need to grow your business. We can reinsure them against losses if a customer demands payment against your surety bond. Foreign Direct Investment Inbound International companies with interest in developing greenfield or brownfield invest- ments with or without capital expenditures (capex) in Canada, should contact our federal partners, including the Trade Commissioner Service, Invest in Canada and other relevant provincial partners, to unlock potential investment opportunities and facilitate their international expansion. Greenfield and brownfield investments are two types of foreign direct investment. With greenfield investing, a company will build its own, brand new facilities from the ground up. Brownfield investment happens when a company purchases or leases an existing facility. Based on the benefits that this investment would bring to Canada, EDC can support up to the full capital costs, the cost of Canadian supply or the purchase price of a company’s investment in Canada, offering competitive rates to borrowers based on credit quality, general market conditions, and the length of repayment terms being considered. We typically partner with other financial institutions when providing this type of financing. To find out more information, please contact EDC’s regional offices in Mexico. Global corporate partnership program When a company is developing its cutting-edge Canadian capabilities, EDC can assist the partnering firm through our export solutions. This offers the company access to diversified and competitive financing, which ultimately benefits their customers, and to social initiatives in Canada. Examples include collaboration on efforts to close the gen- der gap in tech, working with EDC’s Inclusive Trade group to support Indigenous trade and expanding a company’s supply chain. 8. SOLUTIONS FROM EDC https://www.edc.ca/en/solutions/working-capital/export-guarantee-program.html https://www.edc.ca/en/solutions/working-capital/account-performance-security-guarantee.html https://www.edc.ca/en/solutions/working-capital/foreign-exchange-facility-guarantee.html https://www.edc.ca/en/solutions/working-capital/surety-bond-insurance.html https://www.tradecommissioner.gc.ca/index.aspx?lang=eng https://www.investcanada.ca/ 9CONTACTING EDC EDC | Guide to doing business in Mexico | March 2023 32 33EDC | Guide to doing business in Mexico | March 2023 Other relevant sources for information: Embassy of Canada in Mexico City Schiller 529, Col. Polanco, Mexico City, D.F. 11560 Mexico (011-52-55) 5724-7900 (011-52-55) 5724-7982 mexico.commerce@international. gc.ca canadainternational.gc.ca/mexico- mexique/index.aspx?lang=eng Monterrey Consulate General of Canada Ave. Gómez Morin 955 Sur, Suite 404, Colonia Montebello, Monterrey, 66279 Mexico (011-52-81) 8378-0240 (011-52-81) 8356-9965 monterrey@international.gc.ca Canadian Trade Commissioner Service in Mexico Mexico City Guadalajara Consulate of Canada World Trade Center,"

some of the most well-known or well-aspired brands from around the world? And so, it’s shown up in the business as 40% or 50%,” he says, adding, “I think these are the things that we find consistent with what the general thesis was and why we wanted to do Goodee in the first place.” Even so, their own initial experiences as the only Black suppliers in buyer showrooms exposed them to systemic and unconscious bias by purchasers, says Byron Peart. “So yes, we’ve seen it from the customer side. But from our brand and partners, they’re very excited to be part of something that feels different and feels much more global. We’re diverse, but it’s really changing the landscape of what design looks like. That’s a rewarding thing for us, as well.” Finding the right financing for your stage of growth Every business on the cusp of expanding—or in the thick of it— needs access to capital. There are plenty of options, depending on requirements, the size of your business, the industry you’re in and the stage of your growth and export cycle. For Black-owned companies, systemic barriers to capital are real, with 60% of Black entrepreneurs saying they’d feel more comfortable approaching a financial institution with greater Black representation, according to a 2023 study by global consultants, Bain & Company. But changes are underway. There are several options to match the right kind of financial support for your business journey. Bootstrapping Black entrepreneurs, historically, engage in “bootstrapping” or building their businesses from scratch using their own finances—not outside investment capital. In the Canadian Black Chamber of Commerce (CBCC) 2021 survey, Building Black Businesses in Canada: Personas, Perceptions and Experiences, 71% of respondents bootstrapped their startup capital, in part, because the ability of family and friends to contribute was limited. It wasn’t seen as a positive option, but rather a last recourse when all else failed: Very few reported having access to angel, venture or private equity financing. Pros No one to impress, but customers. Without investors to consider, this type of financing means greater control over your products and how you spend capital. Easier to change direction. Self-financing means responding to changes in the marketplace or demand can be quicker to implement. You own your business fully. You may have all the risk, but you also get all the reward and full ownership of your enterprise. Cons Time becomes your scarcest currency. Because bootstrappers use personal capital, they often have to fund their business with a “day job” or even additional part-time work. This can mean a continual time crunch to meet deadlines and longer lead times to benchmarks. No outside support. Not all support from investors is financial. Connections and advice obtained through investors can play an important role in a company’s success. The risk is all on you. While you may gain more if you succeed, you also stand to lose more if you don’t succeed. Even growth costs money to sustain, in terms of paying bills, staff and other overheads. This is a risky scenario unless your company is profitable. Financial strain and credit impact. Bootstrapping can damage your credit score, making it challenging to secure future loans. Rebuilding your credit and regaining lenders’ confidence will demand strategic financial planning, discipline and consistent relationship-building skills. If bootstrapping is the most viable option, manage the risk by: Paying off high-interest debts to reduce financial constraints Using secured credit cards, or become an authorized user to build credit Making timely payments to maintain a positive credit history Monitoring your credit report, disputing errors and maintaining low credit utilization As your credit score improves, explore traditional credit options to strengthen your financial foundation. According to Doug Minter, partnership manager at the Chamber, the CBCC has historically provided educational resources to empower entrepreneurs with enhanced financial literacy and credit management skills to help them strengthen their personal credit. The advisor-led program covers 12 topics, including budgeting, banking, saving, credit management, mortgages, insurance, investing, taxes, retirement, financial planning and fraud protection. These modules are available online through the Federal Consumer Agency of Canada (FCAC) Family and friends financing: Love money Often called “love money,” family and friends are frequently the first source of financing for startups that can’t self-fund. The term “family and friends” is used loosely, as this group of informal supporters can include everyone from immediate family to co-workers and their contacts. Research shows that 27% of Canadian companies plan to sell their products or services outside Canada in the next year or two and 25% of current exporters have this financing. Family and friends financing takes many forms, ranging from a capital outlay for as little as $1,000, to cash in exchange for an equity stake in your company. Either way, this type of financing doesn’t automatically mean your business is now “family owned.” It’s just that your personal network is backing you. Pros Cheapest form of financing. Whether it’s a loan or equity agreement, you can likely determine the terms yourself. Easiest money to raise in the early stages. It doesn’t require much more than a sound idea, a business plan and a compelling pitch. Flexibility in returning dividends or loan repayments. Unlike a bank, family and friends can be more accommodating about payout deadlines. Everyone wins. When you succeed, you share your financial rewards with family and friends for their trust in your business. Cons Everyone’s at risk. A vast number of startups fail which can jeopardize relationships with family and friends. Make sure they only invest what they can afford to live without. Financing is limited. The amount of capital available to you is limited. Eventually, you’ll have to source it from other places. Power struggles. You may get more than money. This type of financing often leads to family and friends feeling entitled to offer advice, guidance and opinions on how you run your business. There’s consistent narrative about Black generational wealth buildout and intergenerational benefits. In this article, Shawnnette Fraser explains why generational wealth is key to changing the narrative for Black Canadians. Equity financing Early in a company’s lifecycle, access to capital is critical to growing a business. As a company is commercializing, or even before it’s generating revenue and becomes cash positive or has cash flow, it’s harder to raise traditional debt financing from a lending institution, unless there are assets or credit deemed worthy of backing as security for repayment. Pre-seed or seed round financing The goal of seed round financing is to raise enough capital from outside investors to get a company off the ground, or develop a product prototype. This financing is offered in exchange for equity in your company and can range from $50,000 to $2 million. This is particularly attractive if you can’t self-fund, or don’t have access to a credit line. Lack of working capital is a primary reason why a high number of startups fail. Pros Angel investors are putting up their own money, so they’re often willing to negotiate and are less risk-averse than banks. Typically, angel investors take an ownership stake in your business rather than interest payments, or repaying the loan. If you fail, they receive nothing. Angel investors can be an incredible resource for networking, guidance and expert support in growing your business because they’re already successful in business. Having their backing can also lead to bigger opportunities. Angel investors, typically, have deep pockets and will invest anywhere from hundreds of thousands to millions of dollars. Angel investors see the value of backing a local enterprise that can be groomed for international markets. Cons This class of investors is backing you to make money, so their expectations of your performance and pressure to success can be intense. Every angel investment dollar you access means you’re trading off your future business earnings, based on their ownership stake. In other words, your future profit is shared. Angel investors aren’t just giving you money; they’re buying a stake in your decision-making, too. Most angel investments are one-time deals and rarely lead to second-round financing. Black-led businesses find it more challenging to find a suitable angel investor in Canada, leading some to venture to the larger U.S. market. What to include in your seed funding pitch: Concept development details Market research viability (MVP) Your business vision and mission Market and demographics research Founding team with clear roles Venture capital/private equity (Series A, Series B, Series C rounds) As a company reaches commercialization and achieves initial market traction, they’ll likely need to raise more equity capital to continue to scale the business and grow sales. Beyond angel investment, entrepreneurs can raise money through venture capital (VC), or private equity in which institutional investors, investment banks and other financial institutions back startups and small businesses with long-term and high-growth potential. In other words, VC investors are betting on your profitability and generally, get partial ownership and a vote as equity for their investment. Series A funding is important during the early growth stages, but because a startup hasn’t had time to develop a consumer base, Series A investors can be hard to land. With Series B, companies are more established, so the investment is aimed at product development, talent acquisition, business development and marketing. Series C funding is focused on upscaling an already successful company even further."

Invoicing PaymentClient Inventory 2 Working capital is defined as the difference between a company’s current assets and current liabilities. It measures short-term solvency, which is the company’s ability to finance current operations and meet obligations as they fall due. It is expressed as a ratio or a dollar amount. When companies do not possess sufficient equity to finance the difference between the current assets and liabilities they must seek outside capital in the form of loans. RISK AND CASH FLOW MANAGEMENT9 CHAPTER 1: RISK AND CASH FLOW THE EFFECTS OF INTERNATIONAL TRADE ON WORKING CAPITAL Various factors will affect the DSO, DIO and DPO when engaging in foreign trade. This in turn affects the CCC (the number of days of working capital required). 4 DSO factors: Larger buyers are increasingly seeking 60-day, 90-day and even longer payment terms. Terms of 180 days are not uncommon in certain markets. DSOs are increasing as a consequence, thereby increasing the CCC and the capital needed to finance operations. 4 DIO factors: Longer global supply chains require additional safety stock to mitigate inventory disruptions. Suppliers are absorbing buyer inventory needs, and deliver on a just-in-time basis or provide vendor- managed inventory. As a result, companies are being asked to hold more inventory for their clients. This increases DIO, the CCC and the capital needed to finance operations. 4 DPO factors: Foreign suppliers have tighter terms due to limited trade credit. They demand 30% to 50% down payments on ordering and 100% payment on shipment. This limits supplier credit, reducing DPO increasing the CCC and requiring that buyers find other forms of credit to meet the operating financing needs of the firm. 4 CCC factors: For most companies, global trade increases the need for working capital financing to fund their investments in receivables and inventory, and to compensate for reduced amounts of credit from foreign suppliers. This means that firms must be able to finance a very long cash conversion cycle if they are to be successful in international trade. These factors are now pushing many Canadian buyers and suppliers to cooperate in order to speed up cash flow and eliminate costs from the supply chain. The blue shaded boxes in Figure 3 show the stages where a company may optimize its processes to increase cash flow and optimize its working capital requirements. RISK AND CASH FLOW MANAGEMENT10 CHAPTER 1: RISK AND CASH FLOW The stages indicated by the blue shaded boxes include: OPTIMIZING PROCUREMENT AND PURCHASING You can: 4 centralize procurement to generate more volume discounts and reduce the number of suppliers, but work more closely with them to eliminate cost and risk for both parties; 4 work more closely with suppliers to share data and improve your planning of deliveries and inventory levels; and 4 work more closely with your finance group to make sure that procurement and finance personnel share the same business objectives for costs, cash flow and working capital management (i.e. how to manage collections, inventory and obtain supplier credit). MODIFYING PAYMENT TERMS You can: 4 negotiate longer payment terms with your suppliers to align better with the payment behaviour of your customers, although this may require higher prices or other concessions on your part; 4 take early payment discounts to reduce cost of goods sold; and 4 become more stringent about collections and granting credit. Figure 3: Optimizing cash flow and working capital Design Order & Materials Planning Procurement Manu- facturing Preassembly Assembly Packing & Shipping After-market ServicesSales Optimize product testing Reduce, parts complexity & releases Modify Payment Terms Optimize Payment Processes Optimize Procurement/ Purchasing Reduce Inventory Revise delivery and warehousing Reduce Lead Times & WIP Modify Payment Terms Optimize Payment Processes Reduce Finished Goods RISK AND CASH FLOW MANAGEMENT11 CHAPTER 1: RISK AND CASH FLOW ENHANCING INVOICE APPROVAL PROCESSES Investing in technology to automate electronic invoicing and approval processes can allow you to take discounts and make payment dates more transparent to your suppliers. This also applies on the client side, using online invoicing and payments to gain greater visibility and predictability in payment receipt. REDUCING INVENTORY Reducing inventory is the most commonly cited desire for both CFOs and supply chain groups. By optimizing manufacturing, warehousing, and shipping and receiving processes, a company can usually lower its inventory needs. This approach often requires developing close relationships with both clients and suppliers. CASH FLOW, WORKING CAPITAL AND THE SUPPLY CHAIN The notion of supply chains lies at the heart of global trade. When conducting business, buyers and suppliers interact through interdependent, value-creating activities such as selling and buying, shipping and receiving, and paying and collecting payment. The supply chain can actually be seen as a pair of parallel value chains. These are cross-linked by various processes, such as financing and risk management, which govern the flow of cash and working capital. Taken together, these elements make up the overall supply chain model. Figure 4 provides a schematic of this model, which depicts the interactions of buyers and suppliers and how they are integrated within these chains. The need to optimize cash flow and minimize investment in working capital affects many of the decisions that companies make when executing supply chain transactions. Some of these decisions occur at the procurement stage and the logistics stage, and are designed to optimize inventory levels and lengthen payment terms for the buyer. This, however, is diametrically opposed to the supplier’s wish to minimize outstanding accounts receivable through shorter payment terms. This tension creates an acute need for financing services that will allow both buyers and suppliers to meet their objectives. RISK AND CASH FLOW MANAGEMENT12 CHAPTER 1: RISK AND CASH FLOW Finally, there is a set of key integrating and optimizing elements needed in supply chain activities. These include financing, risk management, compliance, connectivity (that is, information technology for exchanging data), and information and trade development services. Such elements can provide companies with ways to facilitate transactions while reducing risk and enhancing cash flow and working capital. Figure 4: The supply chain model Financing Risk Management Compliance Management Connectivity Information & Value-added services Plan/Invest (Long-term Capital) Source & Procure Supply Chain Risk Mgmt. Inbound Logistics Production Invoice Processing Payment Plan/Invest (Long-term Capital) Sell & Negotiate Supply Chain Risk Mgmt. Production Outbound Logistics Invoicing Collection Buyer Value Chain Supplier Value Chain Cash & Working Capital Mgmt. RISK AND CASH FLOW MANAGEMENT13 CHAPTER 1: RISK AND CASH FLOW THE TRANSACTION FLOW AND ITS DECISION POINTS Figure 5 provides a picture of a typical transaction flow and the types of decisions inherent in it. Figure 5: Decisions affecting cash flow in the overall transaction flow Supplier Risk Analysis Trade Mgmt Cash Forecast Risk Analysis Working Capital / Trade Finance Cargo Insurance Credit Insurance Dispute Resolution Financing/Payments/Settlement Financing/Payments/Settlement Source Suppliers Select Supplier & Goods Evaluate Credit Negotiate Terms Trade Credit PO Request PO Request Approval Receive PO Acknowledge PO Send PO Config. Order Credit Applic. Confirm Order Confirm Est. Delivery Source Materials Inbound Logistics Raw Mtls. Inventory Finished Goods Inventory Outbound Logistics Produce Order Shipping Order Docs. Issue Invoice Receive Order Shipment Verifictn Receive Invoice Dispute Resolution Reconcile Invoice Generate Payment Issue Payment Invoice Response Receive Payment Advice Process Payment Advice Collect Payment Reconcile and Account Contract Frustration Insurance Contract Frustration Insurance Contract Frustration Insurance RISK AND CASH FLOW MANAGEMENT14 CHAPTER 1: RISK AND CASH FLOW Looking at the overall transaction flow for a sale can help you identify the decisions that will affect your cash flow. These decisions will be influenced by factors such as: 4 supplier risk analysis to ensure solvency and capability; 4 trade management practices, including setting payment terms and payment mechanisms such as letters of credit or open account; establishing delivery requirements using Incoterms; and establishing the contractual responsibilities of each party; 4 updating cash flow forecasts when orders are received and conducting analyses to understand worst-case scenarios; 4 insurance needs, such as credit, marine cargo and liability insurance; 4 provisions for dispute resolution, such as the establishment of jurisdictions and legal mechanisms; 4 financing, including buyer financing and working capital financing; and 4 payment and settlement, using information technology to accelerate invoice approval and payment. CASE STUDY: BEDM SYSTEMS It may be easier to grasp some of these concepts if we examine the hypothetical company referred to earlier. BEDM manufactures custom-engineered materials handling systems and has annual revenues of around $8.1 million3. It also has a $750,000 line of credit to cover its operating needs. Its major current contract is with a buyer in the EU, and the contract value is €1.5 million ($2.4 million). Delivery is required nine months after the receipt of the order. BEDM’s Japanese robot supplier needs a 25% advance payment and a letter of credit (L/C)"

PROTECTED Canada Account Annual Report 2021-2022 11 Canada Account Financial Statements Statement of Receivables as at Mar Mar (in millions of Canadian dollars) 2022 2021 CEBA loans receivable (Note 3) 44,666 44,881 CEBA allowance for transfer payments (Note 3) (13,778) (13,085) Net CEBA receivable 30,888 31,796 Loans receivable (Note 4) 16,987 10,936 Allowance for credit losses on loans (2,471) (3,003) Allowance for losses on accrued interest and fees (247) (197) Unamortized discount on concessionary loans (320) (343) Accrued interest and fees 429 357 Total 45,266 39,546 Statement of Financing Commitments and Contingent Liabilities as at Mar Mar (in millions of Canadian dollars) 2022 2021 Loan commitments 2,907 7,306 Loan guarantees (Note 7) 11 33 Total $2,918 $7,339 Statement of Revenue and Expenses for the year ended Mar Mar (in millions of Canadian dollars) 2022 2021 Revenue Loan interest and guarantee fees 614 404 Gain on foreign currency translation 2 - Amortization of discount 23 23 Recovery of amounts previously expensed (Note 5) 374 2 Total Revenue 1,013 429 Expenses CEBA transfer payment expense (Note 3) 1,515 13,085 CEBA loan provision for credit losses (Note 3) - 2,722 CEBA financial institution fees (Note 3) 182 92 CEBA administrative charges (Note 3 and 5) 56 56 Loss on foreign currency translation - 76 Provision for credit losses on loans and loan guarantees 14 1 Administrative charges (Note 5) 1 1 Total Expenses 1,768 16,033 Net Income (Loss) $(755) $(15,604) PROTECTED Canada Account Annual Report 2021-2022 12 Statement of Cash Flow (to)/from the Consolidated Revenue Fund for the year ended Mar Mar (in millions of Canadian dollars) 2022 2021 Remittances to the Receiver General by EDC Principal (3,292) (1,153) Interest, premiums and fees (547) (393) Total remitted to the Receiver General (3,839) (1,546) Received from CRF by EDC Principal 10,069 49,036 CEBA financial institution fees (Note 3) 182 92 Administrative charges 57 57 Total received from CRF 10,308 49,185 Net cash received from (remitted to) the CRF/Receiver General (as applicable) 6,469 $47,639 Note: All funds received by EDC in respect of Canada Account transactions (loan repayments, interest payments, fees, premium payments, etc.) are remitted by EDC to the Receiver General net of the expenses and overhead of the Corporation arising out of those transactions. PROTECTED Canada Account Annual Report 2021-2022 13 Notes to the Financial Statements Note 1. Mandate and Authority EDC is established for the purposes of (i) supporting and developing, directly or indirectly, Canada's export trade and Canadian capacity to engage in that trade and to respond to international business opportunities and (ii) providing, directly or indirectly, development financing and other forms of development support in a manner that is consistent with Canada’s international development priorities. In March of 2020, EDC’s mandate was temporarily expanded to include supporting and developing, directly or indirectly, domestic business at the request of the Minister and the Minister of Finance. Pursuant to Section 23 of the Act, the Minister, with the concurrence of the Minister of Finance, may authorize the Corporation to undertake certain transactions that are considered to be in the national interest. These transactions or classes of transactions and the legislative authorities that underlie them have come to be known collectively as the “Canada Account”. Such transactions can include business in all of EDC’s product categories. The Corporation is responsible for ensuring that Canada Account transactions are administered appropriately. Accounts for these transactions are maintained separately from the Corporation’s accounts and are consolidated annually as at March 31 with the financial statements of the Government, which are reported upon separately by the Government and audited by the Auditor General of Canada. Prior to March 25, 2020, the Export Development Act allowed Canada Account to have up to an aggregate of $20 billion (the “Statutory Limit”) in: (i) contingent liabilities (i.e., insurance policies, guarantees and other contingent arrangements), (ii) obligations to advance funds in respect of any outstanding arrangements that has the effect of extending credit or to pay money in respect of any outstanding arrangement, and (iii) outstanding principal amounts owed to EDC in respect of any arrangement that has the effect of extending credit. On March 25, 2020, in response to the COVID-19 pandemic, the Act was amended to provide that the Statutory Limit was an amount notified by the Minister of Finance. On April 16, 2020, the Statutory Limit was increased to $75 billion. It was further increased to $93 billion on May 15, 2020 and $115 billion on September 30, 2020. The position against this limit, determined in accordance with the requirements of the Act, was $64,571 million at March 31, 2022 (March 31, 2021 - $63,156 million). Note 2. Summary of Significant Accounting Policies Basis of Accounting The balances presented in the Canada Account financial statements are recorded in accordance with Public Sector Accounting Standards. Consolidated information presented in the Public Accounts of Canada is prepared in accordance with criteria outlined in the Receiver General Manual (Public Accounts of Canada Instructions). Loans Receivable Loans receivable are carried at historical cost and include capitalized interest and fees. Accrued interest is recorded on the contractual basis of the underlying loan. It includes accrued interest and fee revenue on all loans, including loans in default and/or those where there is no expectation of collectability. Loan interest income is recorded on an accrual basis for the purposes of presentation in the Statement of Revenue and Expenses. It includes accrued interest and fee revenue on all loans, with the exception of loans in default where collectability is not reasonably assured. Allowances for Transfer Payments and Credit Losses PROTECTED Canada Account Annual Report 2021-2022 14 When necessary, allowances are recorded to reduce the carrying value of loans to amounts that approximate their net recoverable value. The allowance for transfer payments represents discounts to reflect the concessionary terms of forgiveness clauses in the CEBA program. The allowance for credit losses reflects the possibility of losses associated with potential default. The determination of the allowance considers the credit risk of borrowers, collateral provided as well as previous repayment history. When they are determined to be uncollectible, the loans are written off. Translation of Foreign Currency All loans receivable, loan commitments, contingent liabilities and claims paid and outstanding denominated in foreign currencies are translated into Canadian dollars at the exchange rates prevailing at the end of the reporting period. Income and expenses are translated at either daily or monthly average exchange rates in effect during the year. Exchange gains and losses resulting from the translation of foreign currency balances and transactions are recognized in the income statement during the fiscal year. Measurement Uncertainty Loans receivable are subject to measurement uncertainty due to the use of estimates relating to the allowances for credit losses that reflects the possibility of losses associated with potential defaults, as well as allowances for determining the discounts related to concessionary terms of forgiveness clauses in the CEBA program. The estimate of the allowance for credit losses and the allowance for transfer payments is reviewed annually and refined in light of several factors, including historical loan loss rates, expert judgment, management assumptions, and model-based approaches that consider current economic conditions. The allowance for transfer payments is reviewed annually and refined in light of several factors including historical repayments, expert judgment and management assumptions. The ongoing COVID-19 pandemic heightens the measurement uncertainty related to the allowances for loans. In particular, given the unique nature of the pandemic there is limited historical experience to assess the expected recoveries of CEBA loans receivable which may lead to a material variance in the valuation of the CEBA loans receivable. The full potential impact of the COVID‐19 pandemic on the assumptions such as credit quality and probability of default used to measure the allowance for credit losses is unknown as it will depend on future developments that are uncertain. Note 3. Canada Emergency Business Account (CEBA) Under CEBA in its initial form, loans of $40 thousand were made available to qualifying businesses at 0% interest and repayable by December 31, 2022, subject to a one-time extension of three years and 5% interest per annum commencing on January 1, 2023. Up to 25% ($10 thousand) of the loan could be forgiven only if the borrower repaid their obligation by December 31, 2022. On December 4, 2020, the program was modified to allow eligible applicants to receive a $60 thousand CEBA loan. Eligible CEBA applicants who had received the $40 thousand CEBA loan were able to apply for the CEBA expansion, which provided eligible businesses with an additional $20 thousand CEBA loan. In both cases, these loans were at 0% interest, repayable by December 31, 2022 and subject to a one-time extension of three years and 5% interest per annum commencing on January 1, 2023. Up to"

Ekona Power Energy and power Uses low-cost, pulse-combustion technology to convert natural gas into hydrogen. e-Zinc Energy and power Large-scale electricity storage systems using low-cost zinc reactor technologies. GaN Systems Materials and chemicals Semiconductor company that produces gallium nitride (GaN) semiconductors for electronics that emit less heat than usual.16 GHGSat Resources and environment Satellite-based remote sensing for detecting GHG emissions from facilities. The company updates a methane map17 on its website that shows where emission hotspots are located. Hydrostor Energy and power Specializes in storing surplus renewable energy into compressed air. Ionomr Innovations Materials and chemicals Specializes in anion-exchange membranes for fuel cells specifically for capturing hydrogen at low costs. Mangrove Lithium Materials and chemicals Produces modular platforms for the cost-effective production of lithium hydroxide (used for batteries). Moment Energy Energy and power EV battery vehicle recycling company that converts batteries into affordable energy-storage sys-tems. Pani Resources and environment Monitors sensor data using artificial intelligence (AI) from water treatment plants. Svante Resources and environment Uses metal-organic filters to capture carbon dioxide emitted from heavy manufacturing industries. Number of firms in 2022 (changes from 2021 indicated in brackets) Source: Cleantech Group, 2023, EDC Economics 16 GaN systems was sold in March 2023 to a non-Canadian (German) entity Infineon Technologies for US$830 million, see more here - Semiconductor firm GaN Systems to be acquired by Infineon for US$830 million | BetaKit 17 GHGSat’s methane map: ghgsat.com/en/pulse/ https://www.ghgsat.com/en/pulse/ 13EDC | Canadian cleantech: Powering progress | October 2023 Exploring the profiles, activities and focus of the most innovative Canadian cleantech firms offers some insights on areas of cleantech innovation and opportunity in 2023. It’s important to not generalize overall Canadian strengths based on this list itself as it is created via a process of nomination and not a global market scan and there might be Canadian firms in other sectors. However, based on the Global Cleantech top 100, Canadian strengths appear to be, in the energy and power (five out of 37 companies) and the resources and environment (four out of 23 firms) sectors. (Chart 7) This isn’t surprising given our domestic strength in energy infrastructure and renewable power and that we’re a resource-driven export economy. A second area of strength is that six of the 12 Canadian firms in the Top 100 are repeats from the previous year. This demonstrates capacity to sustain performance and innovation, both of which bode well for future funding, market share, exports, and ecosystem development.18 The 2022 rankings also exposed areas where Canadian performance appears to lag. There was no Canadian representation in agriculture and food, and unlike 2021, none in the materials and chemicals, and transportation and logistics sectors (both had one firm each in the 2021 rankings). While this difference from 2021 isn’t positive, it’s not necessarily bad news, since a lack of representation doesn’t necessarily equate to a lack of innovation or market players in the field. Chart 7: Top 100 innovative cleantech companies by category, 2022 11 5 8 7 4 21 14 10 5 3 5 4 3 Other U.S. Canada Agri/FoodMaterials/ chemicals Resources/ environment Transportation/ logistics Energy/ power Source: Cleantech Group, EDC Economics 18 This list is created via a process of nomination and not a global market scan. Canadian strengths may appear in other areas, too. 14EDC | Canadian cleantech: Powering progress | October 2023 The Canadian cleantech market Government of Canada cleantech initiatives Several Canadian policies have been designed to drive clean innovation in Canada. Beyond our legislated commitment to achieve net zero emissions by 2050 and a federal carbon pricing system, which is set out to grow to $170 per tonne of carbon dioxide emissions by 2030, several public investments totalling more than $100 billion have been committed towards climate action. Supporting clean technology has been prioritized as being central to the government’s goal for promoting clean economic growth. To respond to the IRA and the EU’s programs, the 2023 federal budget also made announcements, including an additional $83 billion through investment tax credits (ITCs) for clean electricity and cleantech, manufacturing investment tax credits, strategic financing from investment vehicles (Canada Infrastructure Bank and Canada Growth Fund) and other targeted government programs through Natural Resources Canada (NRCan) and Innovation Science and Economic Development Canada (ISED). Specific policies and regulations include: Cleantech funding commitments • Canada Growth Fund (CGF): The $15-billion Canada growth fund, announced in 2022, is a public investment vehicle intended to spur private investment in clean energy and cleantech projects and supply chains. • Strategic Innovation Fund (SIF): In the 2023 budget, the federal government allocated an additional $500 million over 10 years towards investment in cleantech to support the development and application of clean technologies in Canada and directed up to $1.5 billion of SIF’s existing resources towards projects in sectors, including clean technologies, critical minerals and industrial transformation. Cleantech tax credits • Clean technology investment tax credit: In response to the U.S.’s IRA, Canada proposed the cleantech ITC in the federal government’s 2022 Fall Economic Statement and formalized it in the 2023 budget. The ITC provides a refundable 30% tax credit on the capital cost of investments made by companies in wind, solar and energy-storage technologies. This tax credit19 is also available for machinery and equipment used to manufacture cleantech products and solutions and extract critical minerals. • Clean hydrogen investment tax credit: Varying between 15% and 40% of project costs, the clean energy hydrogen tax credit offers the highest level of support for projects that produce the cleanest hydrogen. The tax credit also extends a 15% tax credit for equipment that converts hydrogen to ammonia. • CCUS investment tax credit: The tax credit is available for capital invested in a broad range of CCUS applications across different industrial subsectors (for e.g., plastics, concrete, fuels, direct air capture, blue hydrogen). Other support • Clean Growth Hub: This is a federal government- led focal point for cleantech companies helping cleantech stakeholders navigate various federal government programs and services. To ensure that the energy transition is inclusive and resilient, the hub has also launched an inclusion strategy and action plan, as well as a toolkit to help stakeholders apply for federal funding. • Clean Technology Data Strategy (CTDS): The strategy measures the economic, environmental, and social contributions of Canada’s clean technology sector providing key data on the environmental and cleantech sector. With the aim of democratizing cleantech data, the strategy aims to inform policy, support sector growth, and enable private sector decision-making. 19 Access the toolkit here: Applying for federal cleantech funding: A toolkit (canada.ca) https://ised-isde.canada.ca/site/clean-growth-hub/en/applying-federal-clean-tech-funding-toolkit 15EDC | Canadian cleantech: Powering progress | October 2023 Canadian market and investment patterns Canada has seen dramatic growth in private cleantech investment in recent years, with some estimates suggesting funding quadrupling between 2018 and 2022.20 As per the Canadian Venture Capital and Private Equity Association, Canadian cleantech VC investment activity in 2022 was recorded at C$1.2 billion across 46 deals.21 This was comprised of $40 million in seed investment, $452 million in early- stage (Series A and B) and $621 million in late-stage VC investment. In the past five years, 2021 recorded the highest number of deals (53) and 2022 saw record investment in the cleantech sector at $1.2 billion. Since more dollars were invested across select deals in 2022, average deal size was $26 million—the highest recorded since 2018. So far, the first quarter (Q1) of 2023 has recorded $174-million investments across 21 deals, with an average deal value of $8.26 million. Chart 8: Canadian cleantech investment activity, 2018-2022 283 412 305 733 1198 49 32 37 53 46 0 10 20 30 40 50 60 0 200 400 600 800 1000 1200 1400 2018 2019 2020 2021 2022 Number of dealsInvestment C$ millions Investment C$ millions (LHS) Number of deals (RHS) Source: Canadian venture capital and private equity association, EDC Economics Deal activity in Canadian cleantech has been consistently driven by high levels of late-stage investments (Chart 9). Late-stage investments represented 56% of all investments in 2022 and have averaged about half of all investments in the Canadian cleantech sector since 2018. In general, seed investments have only averaged about $25 million since 2018 and have represented only 5% of all Canadian investment in cleantech since 2018. While seed investments are typically smaller financial amounts, the Canadian average is much below average seed deal sizes in the U.S., for example.22 The lack of capital for seed and early-stage deals is a market failure representing a critical funding gap and missed opportunities. Despite 12-13 companies featuring in the top global innovative cleantech firms every year, conservatism in investing can be a key constraint in building true global Canadian cleantech champions."

Search our site Frequently searched questions Get valuable information and insightful tips on the most popular topics. How do I use Incoterms? Business opportunities in Singapore How does credit insurance work? How do I get more money to grow my business? Export Help Hub Browse our collection of exporting FAQs and get answers to your own questions from an EDC trade advisor."

Unlock more working capital and expand beyond Canada’s borders with confidence The Trade Expansion Lending Program (TELP) is an EDC guarantee that helps you access more working capital from your financial institution. EDC shares the risk with your lender by guaranteeing part of your loan or line of credit, allowing them to offer the credit conditions you need to grow. Enter new markets faster Streamline cash flow Grow your business Is TELP right for your business? TELP is typically the fastest and easiest way for EDC to help increase your access to working capital. With an EDC guarantee like TELP in place, your financial institution can offer you a larger loan or line of credit. Enter new markets faster by covering initial expenses and meeting projected demand. Take on new contracts confidently with more effective cash flow management. Invest in machinery, equipment and other resources for international operations. Growing your business but struggling with cash flow? Learn how to get the best financing options from your lender with our free guide. How to get started EDC works with many Canadian financial institutions to deliver TELP. Step 1 1 Talk to your financial institution Ask your lender if TELP is a good fit for your financing needs. If your financial institution doesn’t offer TELP, they can still work with EDC to find other ways to support your growth. Step 2 2 Work with your financial institution to complete the application TELP is delivered by approved financial institutions, making it easier to apply and faster to process. Step 3 3 Grow your business Once your application is approved, you can access your funds through your financial institution. Frequently asked questions How can TELP help my business grow? TELP allows you to access more working capital, enabling you to take on larger projects, enter new markets and invest in your company’s growth without the stress of cash flow issues. You can use your additional capital to: Fund your operations Take on new contracts Expand production capacity (with a CapEx loan) Pursue other opportunities to grow your business internationally How long does the TELP application process take? The TELP application is designed to be straightforward, but processing time can vary depending on your financial institution. It’s best to check with them for specific timelines. What if my financial institution doesn’t offer TELP? If your financial institution doesn’t offer TELP, they can still work with EDC or one of our partners to find other ways to support your growth. Ask your financial institution to call EDC at 1-800-229-0575 to discuss how we can work together to meet your business needs. Have a question about TELP? We’re here to help. Please fill out the form below or call us at 1-800-229-0575 Contact EDC Date modified: 2025-08-09"

and companies, and provide briefings on current market conditions and their associated risks. http://www.edc.ca/EN/Knowledge-Centre/Economic-Analysis-and-Research/Pages/default.aspx http://www.edc.ca/EN/Knowledge-Centre/Economic-Analysis-and-Research/Pages/country-risk.aspx http://www.edc.ca/EN/Knowledge-Centre/Economic-Analysis-and-Research/Pages/country-risk.aspx http://www.edc.ca/EN/About-Us/Contact-Us/Pages/default.aspx http://www.doingbusiness.org/ http://www.doingbusiness.org/rankings http://info.worldbank.org/governance/wgi/index.aspx#home http://export.gov/ccg/ http://www.trade.gov/cs/ http://www.export.gov/mrktresearch/ http://reports.weforum.org/global-competitiveness-report-2014-2015/ http://www.transparency.org http://www.transparency.org/cpi2014 http://www.iccwbo.org/worldwide-membership/national-committees/ http://www.willis.com/ http://www.aon.com/ http://canada.marsh.com http://www.economist.com/ http://www.crisisgroup.org/ http://globalriskinsights.com/ http://www.cfr.org/ http://www.edc.ca/EN/About-Us/Contact-Us/Pages/default.aspx http://www.tradecommissioner.gc.ca/eng/home.jsp http://www.tradecommissioner.gc.ca/eng/trade-offices.jsp 6EDC | Dealing with Country Risk ASSESSING YOUR TOP RISKS Many of the resources listed above can help you identify the country risks most likely to affect you in a particular market. Once you’ve pinpointed them, you can go on to assess the probability of each risk and its potential for causing damage. Many risk specialists use a scenario-building approach to do this; if political risk is a particular concern, for example, you might consider possibilities such as these: • The government’s leadership changes in ways that make it less business-friendly. • The government changes the rules for foreign investors in adverse ways. • The national economy goes into a recession, which leads to worsening budget deficits and lower government spending. For a much more detailed treatment of political risk and how to deal with it, you can download EDC’s white paper on the subject. If economic/financial risk is a hazard, you might consider scenarios such as the following: • The government reduces its subsidies for the industry in which your customer operates. The customer consequently becomes insolvent and can’t pay you. • A customer, under pressure from regulatory changes, alleges that you haven’t met the terms of your sales agreement and cancels the contract. • You have a long-term contract with payment in the local currency, and the foreign exchange rate changes so that the contract is worth less in Canadian dollars than you expected. Your most serious risks, naturally, will depend on your company’s size, industry, international markets and financial strength. Their severity may also change over time according to whether they are one-off risks, or cyclical or structural ones. An example of a one-off risk would be the danger of non-payment for a particular sale. Such risks are relatively easy to identify and understand, and you’ll usually know how long they’ll remain a threat. Cyclical risks, by definition, recur within a known time frame. You can usually predict when they’ll be a major concern, when they’ll diminish and what you’ll need to do to deal with them. Potentially the worst risks are systemic risks—that is, the likelihood of unanticipated events occurring because of the way an economic system is structured or operates. You’re most exposed to these risks if: • You set up or operate an affiliate in an overseas market. • You hold substantial amounts of cash in an overseas market. • You hold equipment or inventory in an overseas market. http://www.edc.ca/EN/Knowledge-Centre/Publications/Pages/managing-political-risk.aspx 7EDC | Dealing with Country Risk The presence of systemic risk raises the question of how predictable your intended (or existing) market is likely to be—will its conditions be the same in a year as they are now? In places with lower country risk, the odds are likely good that they will, although surprises can and do occur. But if you really can’t say for sure what a market will look like in the longer term, or even the middle term, you should be ready to take extra precautions—or, in the worst case, decline to enter the market at all. MANAGING YOUR RISKS Having examined how to identify and assess the risks most likely to affect your international business, we can now turn to dealing with them. Risk management in general has two basic elements. First, you reduce the probability of the risk event occurring in the first place. Second, you take measures to reduce its effects if it does become a reality. In this section, we’ll look at the most common economic and political risks and outline how you can manage both their probability and their effects. Economic and financial risks The economic and financial hazards that tend to be top of mind for Canadian SMEs are non-payment risk, contract risk, FX risk and bonding/guarantee risk. Non-payment risk Having an effective credit management system is your single most important tool for reducing the probability of non-payment due to obligor risk. You can find detailed information about how to do this in EDC’s guide, Credit Management Processes that Pay Off. But while good credit management will help protect you from obligor risk, it is relatively ineffective against the kinds of country risk that can also lead to non-payment, such as economic recessions or political violence. Careful research and due diligence at the country level are your best strategies for managing risks such as these. If you do identify a non-payment hazard, whether because of obligor risk or country risk, one very effective way to reduce its impact is to use credit insurance. EDC offers a suite of these insurance products, which will typically cover up to 90 per cent of your losses if a customer defaults. Trade Protect, for example, can be ideal if you have a small number of international customers you’d like to insure against non-payment. You can apply for a policy quickly and easily online, and there’s very little paperwork. Contract risk Contract risk is any risk that may prevent you from completing a contract. It can happen for a variety of reasons, including: • Your customer becomes insolvent (this can be a result of either obligor risk or country risk). http://www.edc.ca/EN/Knowledge-Centre/Publications/Pages/credit-management-publications.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Credit-Insurance/Pages/default.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Credit-Insurance/Pages/credit-insurance-trade-protect.aspx?il=ci 8EDC | Dealing with Country Risk • Your customer cancels your contract without legitimate cause (this also can be a result of either obligor risk or country risk). • Contract payments are delayed or blocked by government actions. • The authorities cancel your import permits, preventing you from delivering to your customer and thus keeping you from completing the contract. If your analysis suggests that contract risk is a hazard for a particular sale, you can protect yourself with EDC’s Contract Frustration Insurance. It will insure your contract for up to 90 per cent of eligible losses from any of the risks listed above, and from various other hazards as well. FX risk Changes in the FX rate of the Canadian dollar can seriously erode your profit margins and cash flow. In the longer term, moreover, FX unpredictability can make your financial forecasts less reliable, which is never a good thing when you need financing from your bank. Setting up an effective FX risk management program isn’t a trivial task, but it’s well within the reach of any company willing to make the effort. These are the basic steps: • Identify the FX risks affecting your company and determine when in your business cycle your exposure arises. • For each foreign currency in which you do business, measure your level of exposure to FX risk. This allows you to calculate how much protection you need. • Develop a hedging strategy to provide this protection. “Hedges” are financial instruments that lock in the FX rate of an export contract, so you know exactly how much you’ll receive at payment time regardless of how the rate might change. To use hedges, you’ll need to obtain an FX facility from your bank. An FX facility resembles an operating line of credit and can support various types of hedges. Using an FX facility, however, may present you with secondary financial hazards. This is because your bank will require security for the facility in case you default on repayment. Usually, it will carve this security (which can be as much as 15 per cent of the facility) out of your operating line. Depending on your finances, this loss of working capital could create a variety of risks, such as being unable to pay a supplier or simply making it hard to carry on your day-to-day operations. If this might be a problem, you can protect yourself with EDC’s Foreign Exchange Facility Guarantee, which provides a 100 per cent guarantee of the security your bank requires for an FX facility. Once the guarantee is in place, the bank won’t need to touch your operating line, so you’ll have access to all your working capital. For more information, refer to EDC’s guide, Building a Foreign Exchange Policy. http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/contract-frustration-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/foreign-exchange-facility-guarantee.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/foreign-exchange-facility-guarantee.aspx http://www.edc.ca/EN/Knowledge-Centre/Publications/Pages/fx-guide.aspx 9EDC | Dealing with Country Risk Bonding and guarantee risk Depending on the nature of your business, your overseas customers may expect you to"

a pilot scheme that allowed for commercial contracts and their payment terms to be negotiated and conducted in RMB. This is an important development, since it now means that you can accept payment for goods exported from Canada in RMB. It also allows you to accumulate RMB offshore, in designated bank accounts, that you can use to pay for goods you import from China as part of your supply chain. Be sure to discuss the option of accepting payment and transfer of funds in RMB with your bank. Some banks may not deal in RMB despite these changes or may have limitations on how much business they can conduct each year in RMB. While the ability to negotiate commercial contracts and make payments in RMB has expanded with these changes, you should still conduct the same due diligence on your Chinese counterparts as you normally would. Moreover, if you accumulate RMB in offshore accounts, and then move those funds into China as a loan to a Chinese company or affiliate, the usual SAFE regulations on foreign loans apply and the loan will affect the recipient company’s borrowing gap. SAFE determines whether a debt is classified as short-term trade credit or medium/long-term foreign borrowing. If a deferred payment term is longer than 180 days and/or greater than US$200,000 then SAFE usually considers that obligation to be medium/long-term in nature, and subject to the same regulations as a foreign loan requiring SAFE approval. There can be some variation in this, however, depending in part on the ownership of the buyer located in China. As a result, short-term trade credits in China most often have tenors less than 180 days, with the majority offering 30–90 day terms. When negotiating payment terms with Chinese buyers, you need to be aware of this SAFE threshold to avoid contravening China’s foreign borrowing regulations. eDC and sinosure sinosure, China’s export credit and insurance agency, offers a range of insurance and guarantee services to promote exports from China. in 2005, eDC and sinosure developed a joint Risk sharing agreement that may offer eDC clients access to accounts Receivable insurance for their affiliate export sales business in China, as well as potentially better access to working capital from China-based banks. eDC | Doing business in China46 6 FinanCes anD taxation g CONTENTS 6.4.2 Letters of credit If you export to the U.S., you may be accustomed to being paid by the open account method. Many of your financial transactions with your Chinese buyers, however, will be done though letters of credit (LCs). LCs are the most prevalent form of payment in China and offer the best protection for exporters because they designate banks to receive and check shipping documents, and to guarantee payment. Consequently, they should be the first form of payment you seek when entering into a business relationship with a new buyer in China. There are two major types of LC: confirmed LCs and unconfirmed LCs. A confirmed LC has been issued on behalf of the customer by the customer’s bank, and its validity has been confirmed by a domestic Canadian bank. If you have a confirmed LC, you are reasonably assured of receiving payment from the Canadian bank even if the foreign customer or the foreign bank defaults. An unconfirmed LC is less secure, since it has been guaranteed only by the bank that issued it, not by a receiving bank in Canada. The issuing bank merely informs you that the LC has been opened, and tells you what the credit terms and conditions are. LCs can also be irrevocable. This means they can’t be cancelled or amended without your approval. The most secure form of payment is an LC that’s both confirmed and irrevocable. Unconfirmed LCs are the usual payment instrument for Chinese companies. Despite this, you should do your best to get a confirmed, irrevocable LC from your customer. If you can’t, try to ensure that the LC is issued by a Chinese bank that has a good track record and is acceptable to your Canadian bank. Still you should expect that many Canadian banks may demand that you obtain EDC accounts receivable insurance, or seek such insurance themselves, to mitigate the perceived risk. 6.4.3 Tips for using letters of credit Keep the following in mind when using letters of credit: › If your Chinese customer intends to pay you via an LC issued by a Chinese bank, check with your Canadian bank to ensure that it accepts LCs from the Chinese bank. › Ensure that the LC allows partial shipments and transhipment. › Make sure you can prove that you shipped the goods by the date specified in the LC. › Always check shipping conditions with your freight forwarder to make sure that nothing will cause a delay in delivery. › Present all documents by the dates specified. Note that most letters of credit are subject to the Uniform Customs and Practice for Documentary Credits (UCP), which is the universally recognised set of rules governing the use of documentary credits in international trade. 6.4.4 Payment on open account In some sectors, larger and well-established Chinese buyers may press for payment on open-account terms – that is, the buyer orders the goods, you ship them, and the buyer pays you at a pre-determined time after receiving the shipment. This obviously offers you very little security and very little recourse if the buyer fails to pay. You should avoid agreeing to open-account terms unless the buyer has established a history with you of reliable payment via LCs. Even then, do credit checks and exercise due diligence. You would also be very wise to purchase Accounts Receivable Insurance from EDC; this will protect you if the buyer fails to pay. eDC | Doing business in China47 6 FinanCes anD taxation g CONTENTS 6.4.5 Holdback of payment Your Chinese customer may request a holdback of 5 to 10 per cent of the total payment, to be paid to you upon final acceptance of the goods or service. This exposes you to the risk of delayed payment of the holdback, and there have been many cases where the holdback was never paid at all. If you can’t avoid a holdback, protect yourself by insisting on a separate LC for the amount. This LC should have a specific date for final approval of the goods or services, at which time the holdback must be paid out. Also include “deemed acceptance” clauses in your commercial contract, based on contract milestones, in order to limit the amount of time that your holdback will be outstanding. In other words, don’t permit an open-ended timeframe for disbursing the holdback. If you can’t get an LC for the holdback, and the buyer fails to pay it after a reasonable time, you may have to take further action. Refer to Section 7.5, “Litigation and arbitration,” for more information. 6.4.6 Cash deals In some cases, your Chinese customer may be unwilling to pay via LC because the funds specified by the LC will be temporarily frozen by the customer’s bank, and this will affect the customer’s cash flow. Instead, the customer may suggest working on the basis of a cash advance or cash on delivery. You’re more likely to encounter this if you’re in a sector characterized by strong cash flows. Fraud alert several exporters have recently reported unsolicited approaches from prospective Chinese buyers that turned out to be bogus. Many of these approaches were made through email and the internet. While not all unsolicited interest is fraudulent, you should always be on the alert for scams. some warning signs are: a request for a small order, which quickly escalates into a large order that is tied to you providing samples or prototypes; a request for cash for a banquet that is far in excess of the typical cost when negotiating a contract; or cash for travel expenses for an implied, essential meeting. the Canadian trade Commissioner service can help you with suspected fraudulent approaches such as these. eDC | Doing business in China48 g CONTENTS 7 the Fine PRint the Chinese legal system is considerably different from ours, so Canadian exporters to China will need local legal counsel if they want to avoid difficulties. some of the general issues you might have to deal with include the following: › China’s courts and officials have a good deal of leeway in how they apply laws and regulations. Laws and regulations in China are much less specific than they are in Canada, which means that they can be interpreted in different, and possibly inconsistent, ways. › in some cases, it may be difficult to determine whether you are in fact complying with a particular regulation, especially if it has been inconsistently interpreted by different regulators. › Multiple levels of government have the authority to establish regulations. sometimes the regulations issued at one level may contradict those issued at another. › if you want to appeal an official ruling or the official interpretation of a regulation, it may be difficult to do so because there are no clear appeal procedures. › be aware that even though a law or regulation may exist, it isn’t necessarily enforced in a consistent way (or sometimes at all). eDC | Doing business in China49 7 the Fine PRint g CONTENTS 7.1 Obtaining legal services in China China regulates foreign law firms rather strictly when they operate in China, and they can practice only on a limited basis. To quote from DFAIT’s Navigating China: A Guide to Doing Business 2010: When doing business in China, it is essential to have reliable legal counsel. Foreign and international law firms are allowed to open representative offices, but are not officially allowed to practice law China. This means that international firms are not allowed to represent clients before a Chinese court, give legal opinions on Chinese law or employ certified Chinese lawyers."

CLEANTECH EDC HELPS CANADIAN CLEANTECH GO GLOBAL You’re a Canadian cleantech company with innovative technology that you want to share with the world. Exporting is your obvious next step, but you need help. That’s where Export Development Canada (EDC) comes in. Our specialized cleantech team provides solutions for financing and risk protection, expert knowledge about international trade and trusted global connections, so you can grow your business with confidence. GROWTH AND WORKING CAPITAL FINANCING Maximize your cash flow With risk-sharing guarantees to your Canadian bank for senior secured loans, the EDC Export Guarantee Program (EGP) helps extend your line of credit up to an additional $25 million to increase your working capital and/or provide term loans to finance costs of work in progress, buying equipment, or opening an office outside Canada. https://www.edc.ca/en/solutions/working-capital-guarantees/export-guarantee-program.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e Increase your working capital with bonding guarantees Our Account Performance Security Guarantee (APSG) and Foreign Exchange Facility Guarantee (FXG) solutions replace the collateral your bank needs for standby letters of credit or foreign exchange contracts, freeing up your cash to pursue new business opportunities. Scale up financing We offer direct loans to well-established and commercialized cleantech companies to finance work-in-progress costs, expand operations or enter new markets. Accelerate your global growth Cleantech companies with revenues of $500,000 or more, and a lead investor, can access $10 million and upwards in additional capital through the EDC Investment Matching Program. We’ll work with qualified venture capital or private equity investors to increase the funding you need to grow your business and expand internationally. Get large-scale project support and financing We can partner with you to support, arrange and underwrite financing for large- scale cleantech projects through our Structured and Project Finance solution. RISK PROTECTION Ensure you get paid Our Credit Insurance covers up to 90% of your losses if a customer doesn’t pay and allows you to extend your payment terms to give you a competitive edge. MARKET KNOWLEDGE AND GLOBAL CONTACTS Make informed decisions Whether you’re new to exporting or looking to expand your global reach, we provide timely analysis and detailed information about markets of interest, the latest trade intelligence and expert economic insights. Our Export Help Hub also provides answers to more than 600 frequently asked trade-related questions— for free. Meet global companies that need your technology With the EDC Business Connections Program, we’ll introduce you to leading international companies looking for Canadian innovation and expertise, and help you open doors to opportunities in global markets—faster. We can help if you’re: • A Canadian cleantech company with a technology or service proven to reduce environmental impacts; and/or • Securing your first export contract or already exporting As Canada’s export credit agency, Export Development Canada is committed to working with Canadian cleantech companies to help realize the economic and environmental benefits of clean technology and support the growth of Canadian cleantech companies. OTHER RESOURCES › EDC country pages › Cleantech at EDC › EDC Economics Cleantech Report › Trade Commissioner Service › Canada’s Clean Growth Hub OTHER GOVERNMENT CONTACTS › Sustainable Development Technology Canada (SDTC) › Business Development Bank of Canada (BDC) Cleantech Practice › National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) › Natural Resources Canada (NRCan) › Innovation, Science and Economic Development Canada (ISED) Strategic Innovation Fund Get the financing and risk protection you need to make your export contracts a success. Call 1-800-229-0575 or visit edc.ca/cleantech to learn more. EDC Cleantech Last updated: February 2024 https://www.edc.ca/en/solutions/working-capital-guarantees/account-performance-security-guarantee.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/working-capital-guarantees/foreign-exchange-facility-guarantee.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/working-capital-guarantees/foreign-exchange-facility-guarantee.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/financing/direct-lending.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/financing/investments/investment-matching-program.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/financing/investments/investment-matching-program.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/financing/structured-project-finance.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/solutions/insurance/credit-insurance.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/country-info.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/tradeinsights.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/guide/global-economic-outlook.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/tool/export-help-hub.html https://www.edc.ca/en/tool/connections.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/country-info.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/cleantech?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.edc.ca/en/guide/canadian-cleantech-powering-progress.html?utm_source=one-pager&utm_medium=pdf-doc&utm_campaign=brand_cleantech&utm_content=link_cleantech-onepager-2022_e https://www.tradecommissioner.gc.ca/sectors-secteurs/clean-technologies-technologies-propres.aspx?lang=eng https://ised-isde.canada.ca/site/clean-growth-hub/en https://www.sdtc.ca/en/ https://www.sdtc.ca/en/ https://www.bdc.ca/en/bdc-capital/venture-capital/funds/cleantech-practice https://nrc.canada.ca/en/support-technology-innovation https://nrc.canada.ca/en/support-technology-innovation https://nrc.canada.ca/en/support-technology-innovation https://natural-resources.canada.ca/transparency/reporting-and-accountability/plans-and-performance-reports/departmental-plan-formerly-reports-on-plans-and-priorities/2019-20-departmental-plan/making-impact-cleantech/21645 https://ised-isde.canada.ca/site/strategic-innovation-fund/en"

Important notices There are no important notices at this time. December 16, 2024 Customer Care call centre Holiday hours During the holiday season the Customer Care Team will be closed on December 25th, 26th 2024 and January 1st 2025 and will have limited support from 9am to 5pm ET on December 27th, 30th and 31st 2024. We will resume regular business hours on January 2nd, 2025. Wishing you a happy holiday season. For 24/7 access to customer support articles and guides, please visit www.edc.ca/contactus. November 8, 2024 Customer Care Team unable to receive calls We are currently unable to take calls due to a technology service disruption. We apologize for any difficulties you may be experiencing accessing EDC services. If you are a customer or require immediate assistance, please contact the EDC Customer Care Team by email at support@edc.ca. We are working to rectify the situation as quickly as possible. Thank you for your patience. November 4, 2024 Customer Care call centre closing early November 8th, 2024 We wanted to inform you that our Customer Care call centre will be closing early at 5pm ET on November 8th, 2024, for some necessary system maintenance. We understand that this might be inconvenient, and we sincerely apologize for any disruption this may cause. Rest assured; the team will be back to full operations on November 12th at 8am ET. Thank you for your understanding and patience. For 24/7 access to customer support articles and guides, please visit www.edc.ca/contactus. September 16, 2024 Credit card payment for Select Credit Insurance Please note that customers are unable to complete payment via credit card for pending new EDC Select Credit Insurance limits. Due to this issue, we are unable to activate any new Select Credit Insurance limits, even though approval offers have been made. Coverage cannot be activated until payment has been received, so please contact Customer Care to arrange an alternate payment method. We sincerely apologize for the inconvenience this may cause and appreciate your understanding as we work to resolve this matter. If you require immediate assistance or are looking to ship your goods imminently please contact the Customer Care Team at 1-800-229-0575 between the hours of 8am to 8pm ET for payment assistance. December 13, 2023 Customer Care Team – Holiday closures Please note during the holiday season the Customer Care Team will be closed on December 25th, 26th and January 1st, and will have limited support from 9am to 5pm ET on December 27th through to December 29th. We will resume regular business hours on January 2nd, 2024. Wishing you a happy holiday season. November 27, 2023 Customer Care Team – reduced hours of operations Please note that on Tuesday November 28th and Wednesday November 29th the Customer Care Team will have reduced hours of operation from 9am to 5pm ET. Please leave us a voice message or email us at support@edc.ca and an associate will be in touch within the next business day. For urgent requests, please call us during our stated hours of operation. October 27, 2023 CDOR transition This notice is intended to provide information on the CDOR transition, possible impacts on Export Development Canada (EDC) products you might have and other material market developments related to this change. What is CDOR and when is it being discontinued? The Canadian Dollar Offered Rate benchmark (“CDOR”) is a daily benchmark reference rate for Bankers Acceptance ("BA”) borrowings. It’s calculated from a survey of bid-side rates provided by 6 principal market-makers, including major Canadian banks. Refinitiv Benchmark Services (UK) Limited (“RBSL”) is the administrator of CDOR. CDOR is an interest rate benchmark subject to the UK Benchmark Regulation (“BMR”). On May 16, 2022, following the resolution of the RBSL Board and the subsequent authorization granted by the Ontario Securities Commission and the Autorité des marchés financiers, RBSL announced that the calculation and publication of all tenors of CDOR will permanently cease immediately following a final publication on Friday June 28, 2024. What will CDOR be replaced with? Regulators have mandated the financial services industry to transition away from CDOR to alternative reference rates (ARR) or risk-free rates (RFR). RFRs are overnight rates based on actual transactions and are perceived to be more representative and reliable, whereas CDOR are quoted term rates which are predominately based on expert judgment. Canadian Overnight Repo Rate Average (CORRA) will be the replacement rate for CDOR and is administered by the Bank of Canada. In addition to CORRA, The Canadian Alternative Reference Rate (CARR) working group worked with the Canadian industry to establish a new rate called Term CORRA which will offer specific products (loans and floating rate notes) the ability to use a set in advance short-term rate (1 month and 3 months). The Term CORRA is administered by TMX Datalinx and CanDeal Innovations Inc. CARR created the Term CORRA to be compliant with international benchmark standards but warn that certain dependencies underpinning Term CORRA mean its long-term sustainability is not guaranteed. Agreements that contain references to Term CORRA therefore must contain fallback language referencing CORRA (calculated in arrears). What does it mean for you? To ensure this transition is as smooth as possible for our customers, EDC has launched a corporate-wide initiative to support the transition from CDOR to RFRs. Our conversion plan includes working directly with you to help you understand the new rate and interest calculations, as well as amending any impacted loan documentation to accommodate your specific needs. If you have an EDC product priced with CDOR rates, our team will reach out to work with you directly through this transition. While we can’t provide general advice or overall guidance on the CDOR transition, we’re committed to supporting you through this transition and any impacts it may have on your EDC products. We do not intend the CDOR transition to have a meaningful impact on the overall interest payable under the loan and the change won’t entail reassessing the credit quality of loans. It’s simply a conversion from one rate to another, consistent with changes in the market. For more information The CDOR transition is driving fundamental change across the financial services industry. The market will continue to evolve during this transition, and as EDC begins to amend our loans, we will do our utmost to keep you informed of material market developments. You can find key updates here or reach out to your EDC relationship manager with any questions. June 2, 2023 Customer Care Team – reduced hours of operations The Customer Care Team is available to service you by phone at 1-800-229-0575 and email at support@edc.ca, Monday to Thursday from 8am to 8pm ET and 8am to 5pm ET on Fridays. May 31 and June 1, 2023 Customer Care Team – reduced hours of operations Please note that on Wednesday May 31st and Thursday June 1st the Customer Care team will be offline for training purposes and will only be addressing urgent inquiries during those two days. Please leave us a voice message or email us at support@edc.ca if you have an urgent request, and an associate will get back to you. May 17-18, 2023 Customer Care Team – reduced hours of operations Please note that on Wednesday May 17th and Thursday May 18th the Customer Care Team will have reduced hours of operation as employees will be attending our annual EDC employee conference. On Wednesday May 17th our hours will be from 8 a.m. to 10:30 a.m. ET and 4 p.m. to 8 p.m. ET. On Thursday May 18th our hours will be from 8 a.m. to 2 p.m. ET and 4 p.m. to 8 p.m. ET. Please leave us a voice message or email us at support@edc.ca and an associate will be in touch within the next business day. For urgent requests, please call us during our stated hours of operation. March 13 2023 EDC’s message for clients on Silicon Valley Bank Following the news regarding Silicon Valley Bank, we are working closely with our partners and clients affected to understand the impact on their business and needs to better support them. If you would like to speak to us, please contact your account director or call 1-800-229-0575. May 31 2022 Customer Care Team - reduced hours of operations The Customer Care Team is available to service you by phone at 1-866-716-7201 and email at support@edc.ca, Monday to Thursday from 8am to 8pm ET and 8am to 5pm ET on Fridays. May 16 2022 Customer Care Team - reduced hours of operations Please note that on Tuesday May 17 to Thursday May 19th inclusively the Customer Care Team will have reduced hours of operation from 8am to 11am ET and 4pm to 8pm ET. Please leave us a voice message or email us at support@edc.ca and an associate will be in touch within the next business day. For urgent requests, please call us during our stated hours of operation. April 18 2022 Technology service disruption Please note that our 1-800-229-0575 phone number option #2 and our 1-866-716-7201 are currently unavailable due to a technology service disruption. We apologize for this inconvenience and are working quickly to fix this. If you are a customer or require immediate assistance please contact the EDC Customer Care Team by email at support@edc.ca. August 11, 2021 Credit Card Payment Outage Our Customer Care team is currently experiencing issues processing credit card payments due to a technology service disruption. We apologize for this inconvenience and are working to fix the situation as quickly as possible. Thank you for your patience. June 17, 2021 LIBOR transition This notice is intended to provide information on the LIBOR transition, possible impacts on Export Development Canada (EDC) products you might have and other material market developments related to this change. What is LIBOR and when is it being discontinued?"

Credit Insurance services will be unavailable on Feb 8th from 4am to 8am due to scheduled maintenance Unlock your company’s global growth Lorem ipsum dolor sit amet Lorem ipsum dolor sit amet Take your business beyond borders with market insights, connections and financial solutions from EDC. Lorem ipsum dolor sit amet, consectetur adipiscing elit Lorem ipsum dolor sit amet, consectetur adipiscing elit Lorem ipsum dolor sit amet, consectetur adipiscing elit Trade credit insurance Trade credit insuranceTrade credit insurance Protect your business against the risk of unpaid invoices.Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum est enim, pulvinar nec mi et, aliquet varius sapien. Duis ultrices tortor sit amet nisl mollis sodales. Maecenas egestas lorem orci, sit amet consectetur tellus imperdiet sed. Morbi vel porta erat. Proin quis massa at sapien faucibus facilisis vel eget eros. Nam suscipit vel tortor a cursus. Guarantees Unlock working capital from your financial institution to take on new opportunities. Direct lending Scale your global operations and accelerate business growth with flexible financing solutions. Investments Access growth capital to fuel your international business strategy and build on your success. EDC solutions finder: Get tailored recommendations in a few easy steps. Resources and tools to power your export journey EDC Economics Lorem ipsum dolor sit amet Get timely insights and analysis from our experts to understand the global trade trends, opportunities, and risks impacting your business.Get timely insights and analysis from our experts to understand the global trade trends, opportunities, and risks impacting your business. Export Help Hub Browse our collection of exporting FAQs and get answers to your own questions from an EDC trade advisor. EDC Company InSight Search our extensive database of global companies to assess potential risks before doing business with new clients, partners and suppliers. Expert insights on exporting and international business Spotlight Exporting skills Market knowledge Customer stories Reports and guides Webinar Land and expand: Marketing strategies in foreign markets How joining a trade mission can accelerate your export plans Southeast Asia: A wealth of opportunities More resources Guide test Strategies for reducing international freight costs Building your business growth plan See more Doing business in Japan: Insights for Canadian exporters Chile: A market to watch for Canadian exporters North American outlook: Uncertain political environment adds to business, consumer fatigue More market info EDC’s Foreign Exchange Facility Guarantee helps companies manage cash flow Connecting Compass Food Sales to the world of global trade Steely determination: Dalcini is making the world healthier—one lunchbox at a time More customer stories Global Economic Outlook—Autumn 2024 Sustainability management checklist India: Land of opportunity for Canadian companies More insights Tailored support for exporting Cleantech Get trusted support for your cleantech business. Women in Trade Empowering women entrepreneurs to realize their global potential. Indigenous business Bring your products and services to worldwide markets with support from EDC."

can range from $50,000 to $2 million. This is particularly attractive if you can’t self-fund or don’t have access to a credit line. Lack of working capital is a primary reason why a high number of startups fail. EDC | Going global: Empowering women through trade | March 2022 13 What to include in your seed funding pitch: • Concept development details • Market research viability • Your business vision and mission • Market and demographics research • Founding team with clear roles Often pre-seed or seed round equity comes from angel investors. Made famous by re- ality TV shows, like Dragons’ Den and Shark Tank, angel investors are usually wealthy individuals or groups who invest in early-stage businesses. Pros • Angel investors are putting up their own money, so they’re often willing to negoti- ate and are less risk-averse than banks. • Typically, angel investors take an owner- ship stake in your business rather than interest payments or repaying the loan. If you fail, they receive nothing. • Angel investors can be an incredible resource for networking, guidance and expert support in growing your business because they’re already successful in business. Having their backing can also lead to bigger opportunities. • Angel investors typically have deep pockets and will invest anywhere from hundreds of thousands to millions of dollars. • Angel investors see the value of backing a local enterprise that can be groomed for international markets. Cons • This class of investors is backing you to make money, so their expectations of your performance and pressure to success can be intense. • Every angel investment dollar you access means you’re trading off your future business earnings, based on their ownership stake. In other words, your future profit is shared. • Angel investors aren’t just giving you money; they’re buying a stake in your decision-making, too. Most angel in- vestments are one-time deals and rarely lead to second-round financing. • Women-owned businesses find it more challenging to find a suitable angel investor. Venture capital/private equity (Series A, Series B, Series C rounds) As a company reaches commercialization and achieves some initial market traction, they’ll likely need to raise more equity capital to continue to scale the business and grow sales. Beyond angel investment, entrepreneurs can raise money through venture capital or private equity in which institutional investors, investment banks and other financial institutions back startups and small businesses with long-term and high- growth potential. In other words, venture capital investors are betting on your profit- ability and generally, get partial ownership and a vote as equity for their investment. • Series A funding is important during the early growth stages, but because a startup hasn’t had time to develop a consumer base, Series A investors can be hard to land. • With Series B, companies are more established, so the investment is aimed at product development, talent acquisition, business development and marketing. • Series C funding is focused on upscaling an already successful company even further. EDC | Going global: Empowering women through trade | March 2022 14 Pros • Series funding offers your company a cash injection, builds your connection to investors and demonstrates your backers’ confidence that your company or product has high-growth potential. • The greater rigour required in financial controls, analytics and securities compli- ance will only strength your company. • With more capital, you can become more competitive through talent acquisition, visibility through more robust marketing and expansion to overseas markets. Cons • By accepting venture capital funding and handing over a stake or voting rights in your company, you risk losing control. • The cash injection may be used to grow, but if revenue never catches up, you may be victim to premature upscaling, or spending resources on customer acquisition that never comes through. • Companies face greater stress over performance, new levels of bureaucracy and loss of ownership control, as well as the increase in growth risk. Funding from other sources Bank loan financing Only 14% of women use a business loan to grow their business, while 73% self-fund, according to The State of Canadian Women’s Entrepreneurship by VISA. It’s not surpris- ing that research of women-owned businesses found 62% of ready-to-export owners and 46% of NEXTporters said it was difficult or extremely difficult to get approved for financing. To qualify, banks typically require solid personal and business credit scores, healthy financials and perhaps a personal guarantee. (It’s also good to know the differ- ence between a small business bank loan and a commercial bank loan: A small business loan requires strong personal credit and cash flow; a commercial bank loan is typically used for major capital expenditures or operational costs and works as a debt-based arrangement between a bank and commercial business.) Establishing an early relationship with a loans officer, who understands your business and potential for growth, is critical. Before borrowing from a bank, it’s important to understand the pros and cons. Pros • Predictable monthly payments • Build business credit ratings • Professional banker relationship can help add weight to other forms of financ- ing in the future. • Financial support can be used for a variety of purposes and isn’t tied to one aspect or another. Cons • Applications for business loans can take time. • Requires a strong credit rating and may require incorporation • Usually requires specific collateral EDC Inclusive Trade Investments Program (ITIP) Developed specifically for investing in women-led companies or diverse management teams that are raising or recently raised equity funding to grow exports, ITIP reduces the barriers to capital for women, Indigenous, Black and others. EDC has committed $200 million and is contributing as a co-investor or syndicate partner alongside other qualified venture funds to support international growth. EDC partici- pates on market terms and doesn’t provide grants or subsidies under the ITIP. To access ITIP, export- focused companies need: • An overview of your company and sector; • Trailing 12 months (TTM) revenue and run rate; • Transaction term sheet, if available; and • Use of proceeds and export profile. Click to learn more https://www.visa.ca/en_CA/run-your-business/women-small-business.html https://www.edc.ca/en/solutions/financing/inclusive-trade-investments-program.html https://www.edc.ca/en/solutions/financing/inclusive-trade-investments-program.html EDC | Going global: Empowering women through trade | March 2022 15 Small business loans from Business Development Bank of Canada (BDC) Revenue-generating, Canadian-led businesses that have been operational for more than 24 months may qualify for a small business loan from BDC, a Crown corporation and national development bank mandated to help create and develop Canadian business. You must also have a good credit rating and have reached the age of majority where you live. • Apply online • No application fees • Affordable rates, terms and conditions • No personal assets taken as collateral • Capital payments can be postponed for the first six months. • The loan can be repaid over five years, with no penalties for early lump sum payments. • Up to $100,000 Click here to learn more. EDC Buyer Financing Canadian exporters can gain an incredible advantage over competitors through EDC’s Buyer Financing, which not only increases your international customer’s purchasing power, but limits your risk of non-payment. Simply, provide EDC with the export con- tract and customer’s credit information for review. If the application is approved, EDC will issue a loan agreement to your customer and contact you. • EDC holds the responsibility of collect- ing payments from your buyer and administering the loan. • Buyer financing protects you from risk of non-payment by international clients. • Eligibility is determined by customer’s credit rating, transaction details and other metrics. Click here to learn more about EDC Buyer Financing or call 1-800-229-0575. EDC Direct Lending Another way EDC supports women-owned businesses is through a direct loan to help them expand, buy equipment or facilities outside of Canada, or work with foreign affiliates. • This type of loan is based on level of risk and the market involved, and can be used in conjunction with bank loans. • A direct loan can be made to your com- pany to support international expansion or to a foreign affiliate leveraging those foreign assets. • Lending support is priced based on the level of risk and the market involved. • Loan criteria includes financial health, business plan and other reports. Click here to learn more about EDC Direct Lending or call 1-800-229-0575. https://www.bdc.ca/en/easy-small-business-loan?gclid=196654b9ca8615d98f7c3582ba0407c3&gclsrc=3p.ds&msclkid=196654b9ca8615d98f7c3582ba0407c3&utm_source=bing&utm_medium=cpc&utm_campaign=sbl-financing_lead_sem_bing_en_all_can_co&utm_term=%2Bsmall%20%2Bbusiness%20%2Bloan&utm_content=2_General_SBL https://www.edc.ca/en/solutions/financing/buyer-financing.html tel:+18002290575 https://www.edc.ca/en/solutions/financing/direct-lending.html tel:+18002290575 EDC | Going global: Empowering women through trade | March 2022416 PIVOTING TO E-COMMERCE EDC | Going global: Empowering women through trade | March 2022 17 2 Discover new tech in the cloud 1 Optimize online shopping Long before the pandemic had shoppers buying from the safety of their homes, eager consumers looking for convenience and"