EDC Export Support: Who Qualifies and What You Get
Learn how Canadian freelancers can protect their international service contracts against non-payment with this export insurance scheme.
This scheme provides financial protection for freelancers who sell their professional services to clients located in other countries.
Who it's for
This program is specifically designed for freelancers who are selling their services internationally. This includes digital professionals, such as illustrators, who provide their creative work to clients located outside of Canada. If you are operating as a self-employed professional and your business involves cross-border transactions, you may qualify for this coverage.
What you get
The primary benefit of this scheme is insurance and protection against non-payment. When you work with foreign clients, there is always a risk that they may fail to fulfill their payment obligations. This scheme provides a safety net, offering financial security so that you are not left without payment after you have already completed and delivered your professional services.
What it costs you
Using this support is not free. You will be required to pay premium fees to secure the insurance. The amount you are required to pay is not a flat rate; instead, it is calculated based on the total value of the specific contract you are looking to protect. You should factor these costs into your project pricing when working with international clients.
The catch to know
The most important thing to keep in mind is that this scheme is designed to support larger contracts. Because the structure is built around contract value, it may be overkill for small, one-off projects. For example, if you are only selling small illustrations or minor digital assets, the cost and complexity of the insurance might outweigh the benefits compared to the size of the work.
How to apply
- Evaluate your upcoming international service contracts to see if they require protection.
- Calculate the total value of your contract to determine your potential premium costs.
- Determine if the contract size justifies the cost of the insurance.
- Reach out to the issuing agency to begin the process for your specific business needs.
- Check the official portal for the current application process.