Bonds, guarantees and insurances
Some businesses are unable to obtain funds from their usual financial partners for various reasons, which often have nothing to do with their financial situation. Some industries and projects are less "popular" with traditional financing organizations.
One of the main options offered to these businesses consists of soliciting help from government programs that can various financing organizations with bonds or guarantee on the targeted financing.
Whether programs are subsidized by federal or provincial governments, each has its advantages and disadvantages.
The final cost of financing through these programs all depends on the risk premium that varies based on the program and the level of risk assumed by the government organization supporting the financing.
Other programs provide a guarantee as to the purchase of your products or services, and others offer, at a minimal cost, an insurance coverage against all "loss risks" on the payments of your exported products and services.
This type of program can help minimize the risks incurred by the exporting enterprise, and encourages businesses to invest and establish themselves in foreign markets.