NORTHSTAR Trade Finance Inc.

NORTHSTAR Trade Finance Inc. supports Canadian exporters by offering financing to credit worthy foreign buyers of eligible Canadian goods and services. NORTHSTAR complements Export Development Canada (EDC) export financing services by financing export sales of $100 000 to $5 million, with repayment terms of one to five years.

Eligibility Criteria

Any Canadian exporter, regardless of his/her location in Canada, can use NORTHSTAR's facilities, provided he/she meets NORTHSTAR's requirements for export performance and has a credit worthy foreign buyer insurable by EDC.

Summary

NORTHSTAR support is available in two distinctive products: Term Finance and Floor Plan Finance. However, other packages can be tailored to complement your export sales.

Term Finance
Fixed-rate, medium-term loans, from two to five years, are available from NORTHSTAR to your foreign buyer, providing them with a regular repayment schedule. These loans are for amounts up to US$5 million, and are secured by a registered lien on the exported goods. NORTHSTAR is also able to offer loans on a variable rate basis should your buyer prefer.

Floor Plan Finance
This option provides a short-term loan to your foreign buyer. The buyer repays NORTHSTAR when the goods are sold or within 360 days, whichever occurs first. Interest is payable monthly on the outstanding balance. The loans are for amounts up to US$5 million and are secured by a promissory note and security interest in the inventory financed.

To be eligible for either financing options, exported good and services must satisfy Canadian benefits requirements of EDC.

Benefits to Canadian Exporters

• Exporters of small and medium enterprises (SMEs) can offer buyers financing in support of their bids, comparable to the in-house financing packages offered to the buyer by larger competitors.
• Exporters can include NORTHSTAR's indication of interest as part of their marketing package, which is a valuable tool to their sales force.
• Buyer financing is available even for sales of relatively low dollar value.
• Funds are paid directly to the exporter and NORTHSTAR assumes the buyer risk.
• Financing provided to the buyer is non-recourse to the Canadian exporter, provided the exporter has fulfilled its obligations under the contract with the buyer.
• Exporters generally receive payment in full from NORTHSTAR within 10 days of shipment.
• The exporter's line of credit is not affected by NORTHSTAR's financing.
• Loan documentation is standardized for greater efficiency and lower cost.
• NORTHSTAR's turnaround of exporters' applications for buyer financing is quick (within ten business days of submitting a completed application).

Costs to Canadian Exporters
Non-refundable application fee of $300 plus GST.

Quebec Contact(s):
NORTHSTAR Trade Finance Inc.
Suite 105
455 René-Lévesque Boulevard West
Montréal, Quebec  H2Z 1Z2
Telephone: 514-874-3366
Fax: 514-874-8428
Toll-free (information): 1-800-663-9288
E-mail: montreal@northstar.ca

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National Contact(s):
Head Office
NORTHSTAR Trade Finance Inc.
Suite 833, Three Bentall Centre
595 Burrard Street
P.O. Box 49058
Vancouver, British Columbia  V7X 1C4
Telephone: 604-664-5828
Fax: 604-664-5838
Toll-free (information): 1-800-663-9288
E-mail: vancouver@northstar.ca