Turn distributor payment risk into working capital
Emerging-market distributors often lack reliable credit data, and seasonal inventory demands tie up cash while payment terms stretch. EDC trade credit insurance protects you against non-payment and converts insured receivables into assets your lenders will finance.
• Shield collections from distributor default
• Improve your borrowing base with insured receivables
• Free up working capital to support growth
How Canadian food exporters protect their growth
Real companies managing distributor risk and securing payment on international food sales.
"EDC's support gave us the confidence to pursue larger contracts and manage credit risk with buyers we didn't know well."
"Working with EDC meant we could ship to new distributors internationally without worrying whether we'd actually get paid."
"EDC helped us protect our receivables and gave us the confidence to grow our export customer base."
Common questions about export credit and receivables protection
Learn how EDC can help protect your international distributor sales and improve working capital and cash flow.
Access export resourcesHow do we assess distributor credit in emerging markets where trade and financial data is limited?
EDC maintains on-the-ground intelligence and credit assessment capabilities in emerging markets where traditional credit bureaus and financial reporting may not be readily available. When you're evaluating a distributor in these regions, EDC can provide credit reports, buyer risk assessments, and country risk analysis to help you make informed decisions about extending terms. This support can fill critical gaps when your own due diligence reaches its limits.
Can trade credit insurance improve our borrowing capacity and headroom?
Insured receivables are often treated as higher-quality collateral by lenders because the credit risk is backed by EDC. Many Canadian banks and lenders will advance a greater percentage against insured receivables in a borrowing-base facility, which can expand your available credit lines. While each lender sets its own criteria, trade credit insurance typically allows finance teams to access more working capital without adding debt or diluting equity.
How do we manage cash tied up in seasonal inventory builds and extended distributor payment terms?
EDC guarantees and trade credit insurance can help free up working capital when you need to build inventory ahead of peak seasons or offer longer payment terms to win distributor relationships. By reducing the risk profile of your export receivables, these tools make it easier to access financing from your bank or factor. Finance teams often see shorter cash conversion cycles because lenders are more willing to advance funds against protected receivables, even when payment terms stretch to 60 or 90 days.
Can we get expert advice on structuring distributor relationships and credit protection for new markets?
EDC offers advisory services to help finance and trade teams structure export deals, evaluate payment terms, and design credit protection strategies. This includes buyer and distributor due diligence, country and political risk analysis, and guidance on mitigation tools such as insurance, guarantees, or letters of credit. These services are designed to help you enter new markets with greater confidence and clearer risk visibility.
Does EDC offer food industry-specific support for managing international distributor and buyer relationships?
Yes. EDC has dedicated food and agriculture sector expertise and can provide specialized resources and insights to help you manage international distributor and buyer relationships. This includes guidance on assessing distributor creditworthiness, structuring payment terms, and mitigating payment risk in different markets.
Export finance intelligence
Credit risk insights and market intelligence for global expansion
Access market intelligence, credit trends, and risk management strategies for your international sales. Get the data and analysis you need to evaluate distributor relationships and make informed credit decisions across borders.
Ready to stabilize collections and expand your borrowing capacity?
Our export finance specialists help you structure trade credit insurance, guarantees, and receivables financing to support international distributor expansion. Protect your receivables from non-payment, stabilize cash flow from foreign buyers, and free up working capital to grow your network. Connect with a specialist today to tailor a strategy for your business.