Thank you for your question.
In general, we support these companies by providing insurance called accounts receivable insurance. If the company sold lumber or pulp and paper to an American firm, for example, it will have accumulated corporate debt. We insure that debt for 60 or 90 days, or something like that. Then, the company can show the EDC insurance to its bank, which will increase its credit. That is a type of guarantee. It is a sort of triangle formed by the business, EDC and the bank.
It is an indirect method of increasing the credit margin available to that company. This structure is very popular among forestry sector businesses in Quebec. There are also direct loans, but they are not very common.