Business
Solution Financial Announces $7.5 Million Loan Facility with Schedule 1 Bank
(via TheNewswire) NOT FOR DIS T R IBUTION TO U.S. NE W S W I R E SERV...
About this update from Solution Financial Inc.
[{"type":"text","content":"Solution Financial Announces $7.5 Million Loan Facility with Schedule 1 Bank(via TheNewswire)\n \n \nNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n\n \n \nVancouver, B.C. / TheNewswire / April 30, 2019 - Solution Financial Inc. (TSX-V: SFI) (the \"Company\") wishes to announce the close of a $7.5 Million Line of Credit Loan Facility with a major Schedule 1 Canadian Financial Institution.\n\n \n \nHIGHLIGHTS\n\n\n \n\n\nAdds a net $6.3 million in new available leasing capital\n\n\n\nProvides excellent leverage to our shareholders with a low interest rate at Prime plus 1.2% \n\n\n\nEstablishes a mutually beneficial relationship with a major Schedule 1 Canadian Bank\n\n\n\nProvides a clear strategy for the expected growth of our lease portfolio to over $20 million in fiscal 2019\n\n\n\n \n \n\"We are excited about this next major milestone for Solution Financial,\" said Bryan Pang, Solution Financials Chief Executive Officer. \"When we went public in June 2018, we had one major goal and that was to expand our access to equity and debt capital to fully capitalize on the luxury leasing market. Coming into 2019, we averaged over $26 million per year in leasing transactions but much of this business was brokered as a result of Solution's limited access to capital. Since going public, we have raised $3.5 million in equity, $4.08 million in convertible debentures and with this new $7.5 million bank relationship we are well positioned to expand our luxury car leasing offering and incrementally add to our profitable bottom line,\" concluded Bryan. \n\n \n \nThe $7.5 million secured line of credit facility bears interest at prime plus 1.2% per annum (current total interest of 5.15%) and will all be used for new leasing capital. The Company's lease portfolio recently surpassed $16 million.\n\n \n \nAbout Solution Financial\n\n \n \nSolution Financial was incorporated under the provisions of the Business Corporations Act (British Columbia) in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high value assets. Solution works with a select group of automotive and marine dealerships providing lending solutions to clients who cannot obtain leasing terms with traditional Canadian financial institutions. Typical customers include new immigrants, business owners and...