Business
Solution Financial Announces $15 Million Loan Facility with ATB Financial
Calgary, Alberta--(Newsfile Corp. - September 9, 2022) - Solution Financial Inc. (TSX: SFI) (...
About this update from Solution Financial Inc.
[{"type":"text","content":"Solution Financial Announces $15 Million Loan Facility with ATB FinancialCalgary, Alberta--(Newsfile Corp. - September 9, 2022) - Solution Financial Inc. (TSX: SFI) (OTCQX: SLNFF) (the \"Company\") a leading provider of luxury automotive and yacht leasing in Canada, today announced the close of a $15 million Credit Facility with ATB Financial (\"ATB\"). This facility is replacing the existing $12.5 million facility.HIGHLIGHTSAdds an additional $2.5 million of available creditIs more optimally structured to support future growth financing arrangementsMaintains the Company's non-dilutive and low interest capital necessary to continue to grow the Company's profitabilityDemonstrates the impact of an expanded collaboration with Geminus Acquisitions & Management Inc. (\"Geminus\") to support the Company's long-term growth initiatives\"We are very pleased to finalize this facility with ATB,\" said Bryan Pang, Solution Financials Chief Executive Officer. \"Our Chairman, Randy Smyth and the whole Geminus team worked diligently with our internal team over the last nine months to enhance our leasing infrastructure and introduce invaluable long term financing partners such as ATB. We're excited to hit this major milestone and continue to expand our lease financing options to luxury automobile and marine dealerships throughout Alberta, British Columbia, and Ontario. Many of our dealership partners were impacted by lower new vehicle sales volumes due to the COVID semiconductor challenges and the new Federal luxury sales taxes, only to now be seeing higher borrowing costs for their customers and some of the most restrictive lending requirements imposed by Canadian banks targeting luxury auto and new immigrant borrowers that we've ever seen. We're committed to supporting these existing and future dealership partners and their clientele with prudent financing options and a welcoming and friendly approach that is the backbone of our entire organization and the foundation of our successes to date,\" concluded Bryan.The $15 million secured line of credit facility bears interest at prime plus 1.5% per annum (current total interest of 6.2%) and will all be used initially to replace the Company's existing credit facility amounting to approximately $8.3 million. The Company's gross lease portfolio recently surpassed $29 million ($26 million net of ...