In CBC’s coverage of the recent Economic Statement, it highlighted the “…attempt to nudge more businesses into pursuing export markets beyond the United States.” and that the “… goal is to boost Canada’s overseas exports by 50 percent by 2025…”.

RIAC strongly supports this initiative.

Canada is a trading nation but it is a fact that well over 70% of Canadian exports are currently to the US where Canadian goods appear to becoming less welcome. It is common good sense not to put so many eggs in one basket, and with changes in trade agreements and tariffs being continued, and in some cases with new ones being threatened, the repercussions of not adhering to common good sense are now being felt.

Boosting Canada’s overseas exports by 50% will not be accomplished by merely wishing it to be so. Canadian businesses need to utilize all of the tools available to them…. and a very powerful tool is receivables insurance. In fact, a study by an employee of the De Nederlandsche Bank NV in 2010 (entitled “The Private Credit Insurance Effect on Trade” – by Koen J.M. van der Veer) demonstrated that receivables insurance has a significant effect on export growth.

While export receivables insurance does contribute to increasing exports, it is RIAC’s assertion that receivables insurance for domestic trade provides a tool to stimulate growth in Canadian SMEs.

Why does this matter?

An SME has to first firmly establish its operations in Canada before it can venture into foreign markets.

Domestic receivables insurance gives the SME stability in earnings, the confidence of investors and financiers, improved financing terms and the nerve to enter into trading relationships that might otherwise be avoided due to risk aversion or an unwillingness to offer credit terms that match their competition. As a result, SMEs grow faster and hence more rapidly reach that threshold where they can begin exporting. And when they do begin to export, they are already schooled in the use and advantages of receivables insurance which accelerates their entrance into the world of exports.

Receivables insurance is a vital tool that is available to Canadian businesses who are aiming to be a part of this vision of the future Canada. For more information about receivables insurance please contact the Receivables Insurance Association of Canada (RIAC) at or visit our website at