Northern Development Initiative Trust and National Bank team up on new funding program for central a
Supply chain financing program provides just in time cash for local businesses looking to expand alongside major industrial projects.
Amid a wave of major new projects proposed across central and northern B.C.,Northern Development Initiative Trust has teamed up with National Bank of Canada to provide a new source of financing that will help small and medium-sized businesses in the region grow alongside the economy and create new jobs.
In partnership with the National Bank of Canada, the Northern Industry Expansion program will now support supply chain financing with a 25% loan guarantee. This loan guarantee program provides a guarantee of up to 25% of the authorized National Bank loan for purchase order financing or receivables financing to a maximum of $1 million.
Supply chain financing through National Bank provides eligible companies with the front end financing to purchase materials and inventory to fulfill large contracts. Receivables financing through National Bank provides immediate cash to a company once work is completed and is secured by an invoice to an end customer. Receivables financing provides working capital to the company to alleviate short-term cash flow challenges before the invoice is paid.
The Northern Development loan guarantee is intended to leverage National Bank financing, and makes it easier for small and medium sized companies to take on major contracts and expand their businesses to create more jobs.
Supply chain financing is just one more way that Northern Development is answering the needs of the region, and working with small and medium-sized businesses in central and northern B.C. to help them grow alongside our bustling economy," said Evan Saugstad, Chair, Northern Development Initiative Trust.
Businesses in manufacturing, resource processing and the supply sectors in Northern Development's service area, which includes communities from Lytton north to Fort Nelson and Valemount west to Haida Gwaii, are eligible to apply for this program. Businesses in the Northern Development service area can immediately begin to work with National Bank to determine whether their lending needs qualify for this program.
We have been a Canadian leader in receivables and payables financing for many years," said Greg Harder, Senior Manager, Western Canada, Global Banking, National Bank of Canada. "The National Bank's partnership with Northern Development provides enhanced financing and new growth opportunities for companies in northern British Columbia.
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