Guide

Exporting to Canada

Financing exports to Canada

New customers may well buy from you using financing methods such as documentary collections or letters of credit. These provide you with some protection if the customer fails to pay once you deliver the goods. They can also be used to reduce the delay between shipping the goods and receiving payment.

Larger customers, and customers with whom you have built a relationship, may expect to be offered credit in the same way as customers in the UK do.

You should take advice from your bank on the risks and requirements of different forms of payment. As well as contacting your bank, Invest NI can offer advice, they may also be able to offer financial support. Read more about Invest NI financial support.

It's also worth investigating what terms your competitors offer. For example, in some industries it's common practice to offer discounts for prompt payment. You may need to match these terms to remain competitive.

Foreign currency

To be competitive, you may need to quote and accept payment in Canadian dollars. This means that you will be at risk if the exchange rate changes. You can protect yourself against this risk: for example, by buying a foreign-currency option from your bank.

Movements in the US dollar/Canadian dollar exchange rate will also affect the costs and competitiveness of your US competitors.

If you are going to be paid in Canadian dollars, you also need a suitable bank account. Your bank may be able to offer you a Canadian dollar account, or you may want to consider opening a local account in Canada.

Read more aboutĀ foreign currency and exchange risks.