Available Support for Canadian SMEs Going Global
Canadian SMEs looking to expand into global markets are fortunate to have multiple options to explore. Depending on what challenges you are struggling with, one of these options may be a good fit for you.
Managing Cash Flow
The Business Development Bank of Canada (BDC) is a bank dedicated to business development for Canadian entrepreneurs and provides financing, venture capital, and advisory services. It specializes in small and medium-sized companies, which makes it an excellent option for SMEs.
Securing Credit and Guarantees
Export Development Canada (EDC) is an export credit agency that offers financial services to exporters and their international buyers. They provide guarantees, insurance, loans, and credit services.
Contracts with Foreign Governments
The Canadian Commercial Corporation (CCC) assists exporters in Canada to obtain competitive contracts with foreign governments. The CCC supports SMEs access to foreign government markets through a government-to-government contracting approach, working with exporters in markets where the business environment is less predictable and where the foreign government buyer may not have the capacity or capability to tender projects.
Other Private Sector Support
In addition, to support provided by the EDC around insurance products, most of the accounts receivable insurers in Canada are multinational entities that offer the extra benefit of global expertise. Accounts receivable insurance helps businesses to reduce financial risks, improve cash flows, and support overall credit management.
Expanding globally is a venture that, if done right, will yield great opportunities and rewards for SMEs and the Canadian economy, particularly financially. However, the global environment is not always a straightforward domain to navigate, especially for newly globalized SMEs. Being new and small puts SMEs at risk of financial losses that could significantly impact the businesses’ ability to grow.
SMEs can mitigate this risk by first, understanding the financial barriers and challenges they will likely encounter. From there, seeking to find the most efficient, affordable solutions to each barrier, with the help of government support, is the next step. Eventually, optimizing the solutions, tailoring them to your business’ needs is what will help determine how successful a business will be on the world stage. Proper planning, a full understanding of challenges facing SMEs, and full utilization of available supports will significantly assist SMEs in weathering the challenges and thrive over the long term.