Successful bidders often require a performance guarantee for a percentage of the contract amount.
EDC provides an irrevocable and unconditional guarantee directly to RBC, covering 100% of the risk that comes with issuing a bank instrument, allowing you to meet the bonding requirements of current contracts and still take advantage of the next opportunity.
The Foreign Exchange Guarantee covers 100% of your exposure, and is irrevocable and unconditional.
The guarantee includes coverage related to performance risk, such as performance, bid and advance payment bank instruments.
In the event of a claim, RBC claims directly from EDC without being required to take any action against you.
EDC does not share in the collateral security RBC may have, but stands behind us as an unsecured lender.
Guarantees include (but are not limited to):
Pricing is based on EDC’s assessment of the risks associated with a customer and the nature of the business that they are in.
Account-PSG fees are usually calculated using an EDC risk-based pricing grid and are expressed as a percentage rate, per month of coverage, applied against the value and duration of each bank instrument being supported.
The Fee is payable in advance for the full duration of the bank instrument prior to coverage becoming effective. Account-PSG fees are billed to RBC directly.
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