Buddy’s Kitchen uses $850,000 EDC loan for new machinery
March 18, 2016 by Manufacturing AUTOMATION
Mar. 18, 2016 – Export Development Canada (EDC) has announced two loan guarantees totalling $850,000 for Buddy’s Kitchen, an Aurora, Ont.-based manufacturer of gourmet pet food and treats.
The company says it used EDC’s Export Guarantee Program (EGP) to help secure the financing needed to purchase machinery and equipment for its new 22,000-square-foot in Aurora. According to the company, the new financing will help accommodate Buddy’s Kitchen “rapid growth” and “increasing demand from international customers.”
The EGP is a flexible, risk-sharing guarantee that EDC provides to the bank of an exporter, describes EDC, adding that it assures the bank that a percentage of a loan it provides to an exporter will be repaid.
“EDC’s guarantee to our bank allowed us to invest significantly in innovation, capacity, and quality assurance,” said Peter Kaufman, CEO of Buddy’s Kitchen. “Not only will this help increase our exports to the U.S., our primary market, but also to the EU, Asia, and Australia.”
“This program is a difference maker for SMEs because it provides that extra boost they need to grow,” said Mairead Lavery, senior vice-president, Business Development, EDC. “The EGP can be tailored to suit the needs of smaller companies, whether that’s getting financing to break into new markets, money to purchase new equipment to take on new orders, or support for international investments.”