EDC starts with an in-depth due diligence, a process Rob Mauracher, Viking's Executive Vice President of Sales and Marketing, has helped buyers navigate in the past.
“It requires a significant amount of work, there’s no doubt about it. You must submit your ownership profile, business plan, operations strategy and financials,” said Mauracher. “EDC usually demands audited financials. They will evaluate and build a risk profile of your organization and operational location to confirm your business is sound. But if you do pass all these hurdles and get through the gates, the interest rates are very attractive.”
In 2015, EDC served 7,343 customers.
How much is required depends on your business. If you just want to expand your fleet and are simply adding aircraft there’s less paperwork to complete.
“If it’s a brand-new business, they’re going to look at the entire spectrum of your business plan,” said Mauracher. “From overhead and set up costs, to indirect and direct operating costs, to market assessment and how you have validated your market is going to develop.”
Also part of EDC’s due diligence is a commitment to the principles of corporate social responsibility (CSR). It ensures all projects and transactions it supports are financially, environmentally and socially responsible.
The third review process is of the country where your business is located. If all of those reviews are approved, the EDC will finance up to 80 percent of the aircraft’s value. Generally, under the terms of the loan, the remaining 20 percent would need to be cash on hand and not financing from another loan.
EDC helped facilitate $66.8B of Canada's GDP in 2015, 4 percent of the total national income.