EDC operates on a commercial basis. Its rates are determined by the commercial market. This is very important, because the EDC does not give subsidies to businesses. That would go against international rules set by the World Trade Organization. It is very useful for Canadian companies. Its rates are established based on the commercial market.
The company pays EDC, which in turn takes the risk of non-payment. After having checked the quality of the buyer and determined whether it is a sound company and whether there is a performance record, we assume the risk. This insurance can also be obtained through a bank, which does not take on any risk because the loan is guaranteed by EDC. The bank converts this insurance into cash for the company.