NorthStar maintains recourse to the exporter only for performance of the exporter's sales contract with the buyer. In order to facilitate these sales, many exporters carry accounts receivable with these distributors for long periods. Floor Plan Financing provides a direct loan to the foreign distributor. NorthStar pays the exporter upon shipment of the goods to the distributor. The distributor repays NorthStar when the goods are sold or in 360 days, whichever occurs first.
Interest is payable monthly on the outstanding balance.
The loan is secured by a promissory note and security interest in the inventory financed. Also produces a trade and export directory. Micro-business loans, terms loans, working capital for growth loans, working capital loans for exporters, patient capital loans, venture loans. EDC's Export Credit Insurance program helps Canadian exporters manage risk by protecting exports against up to 90 per cent of losses caused by commercial or political events in more than 150 export markets. Up to 85 per cent of the Canadian portion of a deal can be financed.