Saturday, May 19, 2007

Business opportunities in canada

CANADA is one of the countries with the strongest backing for their businessmen. They have funding available for their exporters in such a way that, importers will be greatly and efficiently catered for, so far you are importing from Canada, you are entitled to some grants or loans provided you have the required documentations which are not stressful for a conventional businessman. However, many of the Canadian exporters may ne ignorant of this, so read this and tell them when dealing with them especially if you need your money fast.


Some organizations in the export industry of Canada can lend to any buyer of Canadian goods and/or services for a transaction thatclearly demonstrates economic benefits for Canada. In addition, the foreign company must have been in business for at least two years, and have a proven financial track record with positive cash flow and a healthy balance sheet. To assess a financing proposal, This requires specific documentation.
Qualification Criteria These export oriented agencies can work with a company of any size, operating in any economic sector anywhere in Canada. EDC financing is generally available for export contracts covering capital goods, quasi-capital goods or certain related services.
Cost These export oriented agencies offers competitive rates to borrowers based on credit quality, general market conditions, and the length of repayment terms being considered. An exposure fee may be charged in connection with our export financing, consistent with OECD regulations.
Lines of Credit
These export oriented agencies in Canada provides lines of credit to foreign companies that intend to repeatedly buy goods or services from Canadian companies and to foreign banks or intermediaries that onlend money to buyers of Canadian goods and services.
Various line of credit structures can be arranged by these export oriented agencies and a foreign customer, bank or international intermediary.
Top
Qualification CriteriaTo have your company’s financing proposal assessed, you must submit a set of documentation to these export oriented agencies . Export transactions must demonstrate clear economic benefits to Canada in order to qualify.

These export oriented agencies have Equity Investments allow Canadian companies to leverage EDC’s access to a unique combination of financial tools, expertise and international networks, and acquire the private equity and venture capital to grow their export business.
Business Benefits
Staying power: These export oriented agencies ’ investment capacity, strong balance sheet and diversified operations give Canadian companies confidence in the stability of their operations in challenging market circumstances.
Value-added partnership: These export oriented agencies ’ in-depth knowledge and experience help Canadian enterprises identify and mitigate financial, economic and political risks; analyze market data; and access a global network of trade partners.
Flexibility: These export oriented agencies has the flexibility to provide financing solutions tailored to the needs of small and medium enterprises.
Enhanced capital structure: These export oriented agencies supplements private and public sources of capital, helps to diversify a company’s investor base, and enhances overall capital structures.
Coverage DetailsQualification CriteriaMore informationCoverage DetailsEDC engages in both direct and indirect equity investments.
Direct investments:
Investment in small and medium sized Canadian companies
Investment in foreign companies and foreign projects involving cross-border ownership structures and/or critical supply of Canadian goods and services
Indirect investments:
Partnering by way of investment in professionally managed venture capital funds that, in turn, invest in entrepreneurial Canadian companies
All investment activity is subject to the Export Development Canada Exercise of Certain Powers Regulations.
TopQualification CriteriaTo qualify for these Equity Investments by these export oriented agencies , applicants must fulfill certain information requirements and investment criteria.
Information requirements:
a business plan or information memorandum
a copy of the proposed investment terms and conditions (if available)
identification of other key parties, including other potential equity investors, strategic alliances, debt providers, and project sponsors (if applicable)
copies of relevant commercial documentation
Investment criteria:These export oriented agencies uses specific investment criteria when assessing potential Direct Investments and Indirect Investments. Proposals that fall outside of these criteria are considered at these export oriented agencies' discretion. Emphasis is placed on investments that reflect strong export orientation and have the potential to generate economics benefits to Canada of twice the original investment.
Investments in Canada
These export oriented agencies supports foreign investment in Canadian companies and business ventures with a range of financing solutions and extensive trade experience.Business Benefits
Industry savvy: Foreign investors benefit from these export oriented agencies ’ risk assessment expertise in a full range of industry sectors.
Networking: Investors gain access to these export oriented agencies ’ extensive international banking networks and arrive at workable solutions to their financing needs.
Coverage DetailsCoverage DetailsEDC offers a range of financing solutions to suit investments of varying types and sizes as well as different business strategies, industry sectors and markets. Foreign investors considering business expansion within Canada should contact these export oriented agencies early in their planning to discuss financing options.
Qualification CriteriaThese export oriented agencies assesses the merit of involvement based on the increase in Canadian exports to be derived from the deal. Additional criteria apply:
The investment must support an export-related transaction.
Export contracts must be in-hand; investments may not be idle.
The investment should enhance the market position of the Canadian company by improving channels of distribution, increasing R&D in Canada, enhancing profitability and competitiveness, and/or creating and maintaining jobs.
Assessment for financing requires submission of certain documentation along with a copy of the business plan.
CostEDC works with Canadian financial institutions to arrange the financing. Competitive market-based pricing is negotiated with the lender(s).

This is just one of the many ways by which a buyer can be financed instead of waiting long time before he gets paid by the Canadian company you are dealing with. Therefore, in order to make good use of this service, what you do is
1. When dealing with a Canadian company, tell him that you will want payment via those export oriented agencies since you have fulfilled the condition by buying an export related canadian good from him.
2. After the Canaadian company says you should go ahead, then you send your proposal to the export oriented agencies to review.
3. After the review, they will tell you what you need to do, and then the financing can be arranged accordingly going by the agreement you make after their reviewing of your proposal or business plan.
We also have this type of financing for buying US goods. You can have access to these info by special request. These information includes Factoring processes. This information are helpful to brokers as well as buyers who may not have enough funds to buy these goods especially after tendering a genuine reason one way or the other. Brokers can make good use of this info to get more sellers or buyers since the financing aspect has been taken care of and the brokers can quickly get his pay so far, the financing of the deal is readily available through these export oriented agencies in the US, Canada and so on as said.

No comments: