"nextrade finance" Initiative

The "nextrade finance" Initiative consists of a federal-provincial partnership which has been established by Saskatchewan Trade and Export Partnership (STEP) and supported by Western Economic Diversification Canada (WD) through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA). This initiative, comprised of two programs, provides pre- and post-shipment financing for Saskatchewan export companies to grow their export business.

Eligibility Criteria

To be eligible, companies must:

• be a Saskatchewan company;
• have a current export transaction; and
• have receivables valued between $20,000 to $150,000 CDN.
  

Eligible Area

The province of Saskatchewan.

Summary

Pre-shipment Financing

The pre-shipment financing allows an exporter to access the funding they need to produce and fill new export orders. A company with confirmed export orders in the range of $20,000 to $150,000 may have access to the equivalent amount of money to help fill those orders. The capital is available for 60 days.

This benefits the exporter in:

• generating new business with the funding needed to fill the order;
• mitigating the risk of buyer cancellation;
• increasing working capital; and
• filling more orders without exhausting current credit facilities.

Accounts Receivable Program (post-shipment financing)

The Accounts Receivable Program allows a company to turn small export receivables into cash immediately. This provides cash flow between the shipment and payment dates without using an existing line of credit. The money will be advanced to the exporter and be reimbursed directly to “nextrade finance” by the buyer under a 90-day term.

This benefits the exporter in:

• turning sales into cash quickly;
• mitigating the risk of non-payment;
• increasing sales by extending credit terms to buyers to match their sales cycles; and
• increasing working capital to allow the filling of more orders.

Financing Decisions

Financing decisions are based on a contract specific basis. Pre-shipment financing application approval will depend on the individual contract details; accounts receivable program credit decisions will be made within 5 business days from application.

Saskatchewan Contact(s):
Mr. Glen Millard
Director
"nextrade" finance inc.
320 - 1801 Hamilton Street
Regina, Saskatchewan  S4P 3C6
Telephone: (306) 787-7936
Fax: (306) 787-4637