RIFCO Inc. announced this week that it has renewed its credit facility with BMO Bank of Montreal and increased its credit limit to $10 million.
The credit limit for the Alberta-based firm had been previously authorized at $9.5 million.
“With this renewal the banking relationship is being transitioned to the corporate banking division where credit needs above $10 million are managed,” the company said in a release.
The credit facility is used by RIFCO to grant non-traditional auto loans. These loans are warehoused on-book prior to securitization funding. It remains RIFCO's goal to increase the level of on-book loans. This facility provides the company with its lowest funding costs. RIFCO employs a balanced approach for loan portfolio funding of equity, senior debt, subordinated debt and loan securitization funders.
It has been a busy few months for one of Canada’s fastest growing auto finance companies. In November, RIFCO announced its 1st renewal of a $30 million securitization facility with a Schedule 1 Canadian Chartered Bank.
Prior to that, RIFCO announced a new $10 million securitization facility last July with an Alberta Regional Credit Union.
In total, RIFCO currently has $70 million in securitization facilities, noting it will continue to seek additional facilities to meet its growth plans.
“The company is optimistic that funding conditions will continue to improve. RIFCO remains committed to granting loans that will perform within an established target range and with an acceptable profit margin.”