Export Report: Southern Exposure

“Many Canadian companies are in an excellent position to take advantage of these opportunities,” says McConnell. “According to a recent Conference Board of Canada report, Canada is expected to recover from the recession better than most industrialized countries because it entered the downturn in a healthier position. That sends a very positive message to potential customers in foreign markets.”

Canada’s stronger economic position also means fewer roadblocks to lining up trade financing. Opportunities include loans and lines of credit to foreign companies buying from Canada, equity financing, loan guarantees to banks, and loans to help Canadian companies invest in projects or operations abroad. Both the BDC and EDC have introduced several programs to encourage companies – including small businesses – to develop new markets, such as funding to participate in trade shows, develop export plans or purchase inventory for export to new markets.

“There is financing available for good projects,” McConnell says. “There is also a lot of advice and resources that are available for small businesses. If you’re not sure where the opportunities lie, talk to an outside consultant or your business association. BDC branches throughout Canada can also assist entrepreneurs in need of financing.”

Adds L’Heureux, “Canadian companies that act now to diversify their markets will be in a better position to take advantage of the next cycle of growth when the economy rebounds. The risks are high these days, but the greatest risk for small companies is standing still.”