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Neo Financial secures $185-million credit facility from credit unions
Neo Financial's $185 million credit facility deal led by ATB Financial supports its credit card program's growth.
Key points
- Neo Financial's $185 million credit facility supports its credit card program's expansion.
- The deal, led by ATB Financial, includes participation from Canadian credit unions.
- Terms allow for an increase to $250 million, enabling Neo's ambition to build a collaborative platform.
Why it matters. This funding injection enables Neo Financial to strengthen its position as one of Canada's fastest-growing fintechs, potentially impacting the competitive landscape of Canadian banking.
Neo Financial, a Canadian fintech company, secured a $185 million credit facility from ATB Financial and credit unions on Thursday. The deal, led by ATB Financial, includes Vancity, Beem, Alterna, and Innovation Federal Credit Union. Neo plans to use the funding to expand its credit card program's funding capacity. The terms allow for an increase to $250 million, and Neo aims to build a platform for other financial institutions to participate in its growth.
Latest updates
Neo Financial secures $185-million credit facility from credit unions
Financing will be led by ATB Financial and include participation from Vancity, Beem, Alterna, and Innovation Federal Credit Union. The post Neo Financial secures $185-million credit facility from credit unions first appeared on BetaKit . Financing will be led by ATB Financial and include participation from Vancity, Beem, Alterna, and Innovation Federal Credit Union. Neo Financial has closed a deal to receive $185 million in a credit facility from ATB Financial and a handful of credit unions that it says will support the growth of Neo’s credit card program. The news: Announced on Thursday, Neo said it had closed a syndicated “warehouse facility at $185 million.” In finance, a warehouse facility is an arrangement where companies can borrow against a pool of assets without giving up equity or taking out a traditional loan. Neo said the lending capital would be used to expand the funding capacity for the FinTech’s credit card receivables. From the source: “Building a more competitive banking system in Canada is a team sport,” Neo co-founder and chief commercial officer Jeff Adamson wrote on social media . “This funding supports Neo’s credit card receivables as we grow. It also puts a bigger ambition into practice: building a platform where other financial institutions can participate in that growth.” The context: Terms of the warehouse facility agreement were not explicitly outline.