FINANCING
| EXPORT
FINANCING |
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This
page last updated 2015 July 20
| INTRODUCTION | The 4 P's, product,
price, promotion, place are of course effected by how much money you have
for exporting. The Canadian government considers exporting a good thing
for most all companies and strongly encourages companies to export.
Sometimes the economic environment and the competitive environment are such that a company might not have enough money for export development so the government has several programs to financially support companies so that they can get started. Most of these programs are available at the federal level, but some are also available provincially. WTGR |
 |
Screen capture
to the DFAIT site discussing funding assistance for Canadian exporters
2012 - link still works 2015 |
| 2015 Update | PEMD in 2015
still goes through the
GOA Global Opportunities for Associations Basically, this requires companies (who wish to obtain the funding) go through the relevant industry association for that sector / geographic. Annual non-repayable contributions range from a minimum of $20,000 to a maximum of $250,000 (increased from $150,000) see |
| 2015 Update | PEMD in 2015
also includes International Financial Institution (IFI) Funding for Education
and Training
Canadian companies are eligible to bid on IFI-funded contracts. These include: the
These projects are opportunities for Canadian companies to be involved in overseas business as providers of services and goods. http://www.tradecommissioner.gc.ca/eng/development-humanitarian-aid-markets/index.jsp |
| 2012 Update | PEMD is known
in 2012 as
GOA Global Opportunities for Associations "Global Opportunities for Associations (GOA), formerly the Program for Export Market Development - Associations (PEMD-A), provides contribution funding to support national associations undertaking new or expanded international business development activities, in strategic markets and sectors, for the benefit of an entire industry (member and non-member firms)" Annual non-repayable contributions range from a minimum of $20,000 to a maximum of $150,000 see www.tradecommissioner.gc.ca/eng/funding/global-opportunities-associations/home.jsp |
| 2008 Update | A
note on the DFAIT site in March 2008
"For 2008-09, the PEMD program will be operating with reduced funding available as compared to former years. " PEMD-ASSOCIATIONS
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| 2007 Update | A
note on the DFAIT site in July 2007 says "A strategic review of the program
in 2003/04 determined that PEMD-Industry was no longer in line with clients
needs. That program element was closed in April 2004 as part of the government-wide
effort to reallocate funds. Small and medium size enterprises, however,
continue to receive assistance through the Virtual Trade Commissioner,
through the Department’s regional offices in each of Canada’s provinces,
and through more than 140 embassies and consulates abroad."
PEMD-INDUSTRY is shut down
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| 2004 Update | A note on the DFAIT site in Nov 2004 says "International Trade Canada has closed down the Program for Export Market Development for Industry (PEMD-Industry). PEMD-Industry contributions that were approved before March 30, 2004, will be fulfilled" |
| Gov't
Sources for int'l business finance
|
PEMD http://pemd-pdme.infoexport.gc.ca/pemd/menu-en.asp
"PEMD is the government’s primary international business development program. The objective of PEMD is to increase export sales of Canadian goods and services by sharing the costs of activities that companies normally could or would not undertake alone, thereby reducing risks involved in entering a foreign market."Companies apply for an amount - and, if granted they spend the money alloted and submit receipts against which cheques will be issued. The application progress is rigorous and companies have to substantiate thatthey would be effective users of any money and that the subsequent actions taken would result in export sales. Qualifications for being accepted to PEMD include a company having to have annual corporate sales of greater than $250,000 but less than $10 million. |
| Gov't
Sources for int'l business finance |
PEMD examples
PEMD assisted a Montreal-based engineering contracting firm win a $270-million project in Indonesia. PEMD assisted them in bid preparation. An Alberta company used a PEMD to allow it to visit potential customers in Africa and from those meetings, secure business. Recently the government has also created a new program PEMD-I which helps people with the expenses to attract investors. |
| Gov't
Sources for int'l business finance |
PEMD and Associations
http://pemd-pdme.infoexport.gc.ca/pemd/tradeassociations/assist-en.asp(2007) "The PEMD – Trade Association Activities program provides assistance on a cost-shared basis to Canadian, sectoral trade associations that have a national mandate." This allows the government to assist exporters who are grouped in sectoral or geographically focused trade associations. Is the company that you are studying for the final exam a member of an association? Is that association a candidate to participate in PEMD?
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| Gov't
Sources for int'l business finance |
other federal programs besides
PEMD include
NEBS - New Exporters to Border States "...targets Canadian companies
not yet exporting to the United States (U.S.). NEBS
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| Gov't
Sources for int'l business finance |
It doesn't always have to
be physical products, it can be services and cultural exports also.
Film, Video, Television the International Cultural
Relations Program of the
"Financial support may be
provided to professionals in the Canadian film, video and television industries
who have demonstrated experience and success in their field, to support
their participation in international events with a view to the sale of
their products
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| Gov't
Sources for int'l business finance |
Books
Association for the Export of Canadian Books (AECB) (supported by the government) "International Marketing Assistance Program: administered by the AECB, this program is funded by the Department of Canadian Heritage as a component of the Book Publishing Industry Development Program. The objective of this component is to develop and sustain Canadian publishers’ export sales. The IMA is made up of two funding programs: the Export Marketing Assistance Program (EMAP) and the Foreign Rights Marketing Assistance Program (FRMAP)." "The AECB is applying for
a $100,000 contribution from PEMD, focusing on providing enhanced market
intelligence about the US, UK, French Europe and developing countries.
The AECB has also applied for funding support towards the coordination
of a collective Canada stand at the upcoming Tokyo, Beijing and Liber (Madrid)
book fairs."
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| Gov't
Sources for int'l business finance EDC
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EDC provides market reports and advises exporters about how to minimize risk in international business transaction. This is particularly helpful for medium and small sized companies worrying about selling to a buyer that might not be covered by conventional insurance policies, or worried about selling to a buyer who is in a risky situation due to a crisis or threat situation. An explanation of their insurance services and political risk coverage; "When you invest overseas, you're exposed to a range of risks over and above the business challenges you face in the domestic market. EDC Political Risk Insurance can help you protect your investments abroad, covering up to 90 per cent of your losses."An EDC Political Risk Insurance (PRI) Policy insures you against losses due to three types of political risk:
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| EDC
JOBS
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Students may be interested
to know that EDC hires university graduates who have studied int'l business
and finance. Some former UTSC students work at EDC.
edc.ca/EN/About-Us/Student-Programs/Pages/default.aspx(working July 2012) "EDC was recently honoured in Maclean's magazine as one of Canada's TOP 100 Employers. Company-wide, we speak over 40 languages and do business in more than 200 countries around the world." |
| Gov't
Sources for int'l business finance CCC |
Their site explains
read more about the CCC at
www.ccc.ca
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The CCC operates
in a way that helps unknown Canadian companies "get a rep" by having the
CCC say "we know him, he's a friend of ours"
A helpful understanding of the phrase "a friend of our's" can be gleaned by watching a clip from the mob film "Donnie Brasco" In this segment, Al Pacino (the older Mob guy) explains to Johnny Depp (the younger guy) how they use certain phrases to indicate to strangers that a certain person is OK to deal with A "friend of mine" simply means that the reference can vouch for him one-to-one A "friend of ours" is more
powerful and means the person has the credibility of the whole organization
behind him
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| Gov't
Sources for int'l business finance BDC
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BDC's "Working Capital for
Exporters"
www.bdc.ca "Working Capital for Exporters is designed to help small businesses finance export and export-related activities. This product provides pre-shipment financing, of up to $250,000, to cover the heavy costs associated with initiating and developing international markets. Flexible repayment terms allow small companies to build foreign sales and ensures the long-term viability of your company." The thing about BDC is the criteria might be difficult to meet for some small exporters. The criteria are
However there are some circumstances where BDC financing is the only option for some companies since they are, for one reason or another, excluded from other financing situations. |
| Gov't
Sources for int'l business finance BDC
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On their website they also
list "Things the BDC does NOT do" - which is helpful cause it will save
you from wasting your time.
"Things they do not do", include
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| Regional / Municipal | Municipal and local region
governments don't have as much money as federal and provincial governments,
but they also have web based information on financing
see http://www.niagaracanada.com/content/index.asp?page=519(link dead) |
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