Established by the Saskatchewan Trade and Export Partnership (STEP), the loan fund has been started with a $1.725 million contribution through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA). The fund, which will be managed independently by Nextrade Finance, is designed to allow exporters to turn sales into cash immediately.

"Saskatchewan's export-driven economy is diverse and dynamic with exporting equal to almost 70 per cent of the province's GDP," Cline said. "The nextrade finance initiative will provide Saskatchewan exporters with the necessary flexibility that will enable them to maintain a competitive edge in today's global economy."

How the program works:

• Nextrade Finance will accept loan applications from Saskatchewan exporters looking for pre-shipment financing.

• These loans will allow exporters that hold an export order to receive financing that will help them fulfill the order.

• For a loan application to be considered the exporter must be based in Saskatchewan and they must have been in business for a minimum of three years.

• Export receivables valued from $20,000 - $150,000 and terms up to 90 days will qualify for the program.

• Each transaction will be tailored to meet the specific needs of the export contract.

Nextrade will begin accepting loan applications on November 15th, 2004.

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