Nord-Aski Regional Economic Development Corporation

 

1500 Front Street, P. O. Bag 6000

Hearst, Ontario - POL 1N0

 

(800)-495-7750

(705) 362-7355

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LENDING & FINANCIAL SERVICES

Nord-Aski REDC is a federally funded economic development agency providing financial assistance in the form of loans, loan guarantees and equity participation to area businesses who contribute to the creation and/or maintenance of long term employment in the communities it serves. 

 

All information provided in the process of applying for financial assistance is held in the strictest confidence. You can set up an appointment to discuss your financing requirements. There is no obligation to apply for a loan and our consultation services are free of charge. (Your checklist to get approved for a business loan)

To be considered for a loan you must be planning to locate, start or expand business operations within the boundaries of Nord-Aski REDC.

 

Call us at 1-800-495-7750 or drop by at 1500 Front Street in Hearst  to discuss your project.

Application Process

 

Complete applications along with an original signature must be submitted. If you have any questions regarding the nature of the information we require to consider your small business loan request, please contact Josée Vachon, our Business and Financial Analyst.  She will review your application and contact you to set up a meeting to go over your requirements and discuss the different financing products we offer.

 

Community Futures Development Corporations often work in partnership with other lenders – from commercial banks, credit unions and the BDC. The BDC has put together a helpful guide on preparing your loan application. Read the guide here.

Small Business Loan Products

 

  • Term Loans

 

Nord-Aski REDC provides term loans to qualified applicants.  We offer competitive interest rates and varying amortisation periods.  We provide loans for Business Start-up, Businesses Expansion, Asset Purchases, Working Capital and Consolidation of Business Debt.

Up to a maximum of $600,000 (locally and through the Northeastern Ontario Investment Pool)

Varying terms

Regular Interest Rate

 

  • ReadyCash

Short-term loans for existing businesses to enhance promotional tools/marketing campaigns or increase the productivity of your business by refreshing/renewing your equipment (photocopiers, computers, cash registers, etc.); make leasehold improvements; increase your inventory, or help with your working capital.

 

Up to a maximum of $10,000.00

Term of 12 months

Prime + 2%

 

  • FlexLine - Flexible line of credit loans

 

Flexibility... No need to reapply for funds - available when you need it. 

Business & Financial Analyst will revise on a yearly basis.

Up to a maximum of $100,000

Term of 12 months

Regular interest rate

  • NextGen

 

For young entrepreneurs (18 to 35 years of age) with great business ideas who need assistance with business equipment costs.

 

Up to $2,500.00

Term of 12 months

Prime + 2%

 

Up to $5,000.00

Term of 18 months

Prime + 2%

Cash Flow

 

Cash flow is the life-blood of all businesses. It is essential that you predict what is going to happen to cash flow to make sure that your business can afford to pay suppliers and employees. Suppliers who don’t get paid will soon stop supplying; it is even worse if employees are not paid on time. Think of the cash flow forecast as an “early warning system”. Spot problems with customer payments - preparing the forecast encourages you to look at how quickly customers are paying you.

 

Lenders (banks, credit unions and CFDCs) require a cash flow forecast before they can approve a small business loan. It’s also common that you will be asked to provide cash flow forecasts at regular intervals until your loan is paid in full.

 

A cash flow forecast indicates the likely future movement of cash in and out of the business. It’s an estimate of the amount of money you expect to flow in (receipts) and out (payments) of your business and includes all your projected income and expenses.

 

  • Add cash inflows you expect to collect each month for the next 12 months. This includes customer payments, loans, grants, rental income etc… Keep in mind your customer payment terms – cash or credit (30, 60, 90 days or longer).

  • Add cash outflows from the items listed in your expenses forecast including supplier payments, salaries, rent, credit card payments, and taxes. You also need to include your loan repayments. Consider irregular and seasonal payments such as repairs and maintenance as required, and inventory purchases.

  • Add in an opening bank account balance, and add the revenue less the expenses for each monthly period to find out your likely cash position.

 

For more help with cash flow, click here.