Insurance offered by government organizations can be one piece in the puzzle for small and medium-sized business looking to grow their bottom lines by going abroad.
Federal organizations such as EDC and Business Development Canada can help businesses by providing or subsidizing accounts receivable insurance (for 30-, 60- or 90-day terms) and financing on goods and services exported from Canada.
This is a particularly useful resource to tap when risk-averse lenders such as the major banks turn down financing requests. In addition, Industry Canada, EDC and Foreign Affairs, Trade and Development Canada (DFATD) offer reports on local economic, social and political situations to help entrepreneurs select export markets.
According to a leading export expert, another well-received program is a DFATD-funded service, which allows Canadian business owners to connect with trade commissioners in countries around the world, free of charge.
“One of the things we’ve noted is that people are very satisfied with the Trade Commissioner service,” Thomas Jones, a senior partner with Canadian Export Consulting Services in Ottawa told the Globe and Mail.
According to Jones, the commissioners are tasked with helping entrepreneurs build business contacts, bid on contracts, identify potential customers, obtain the help of local service providers such as lawyers or accountants, and better understand the market into which they hope to expand.
