BDC leverages indirect channels to increase its impact on Canadian SMEs by providing capital to financial intermediaries. By doing so, we encourage other institutions to provide continued economic support to Canadian businesses.
Structured finance solutions
Our core business is securitization, a specialized form of financing that we offer to finance and leasing companies through our Funding Platform for Independent Lenders (F-PIL), in partnership with TAO Asset Management (TAO). For smaller, emerging finance and leasing companies with fewer assets, we also offer a secured lending facility under the same platform.
Highlights of the Funding Platform for Independent Lenders (F-PIL)
If you run a finance or leasing company and want to gain access to funding that you couldn’t otherwise obtain from traditional sources, we work with your business to assess your needs and determine financing rates based on your company’s assets.
F-PIL is focused on financing through term facilities backed by loans and leases on vehicles and equipment. By pooling their assets for the F-PIL Securitization or Secured Loans program, companies can access funding with potentially better financial terms than those of typical lenders. Finance and leasing companies can then pass these terms on to SMEs.
Benefits for your business
- Favourable financial terms, which can be passed on to your customers
- Uncommitted and committed facilities
- Public securitization market guidance on funding costs
- No minimum transaction size
- No public rating required
- Common financing structure to facilitate the timing, cost-effectiveness and ease of completion of transactions
- Funding provided on a match-funded basis, e.g. contracts funded for their entire term
- Auto loan and lease contracts (including fleet financing programs)
- Equipment loan and lease contracts
- Dealer floor plan financing for both auto and equipment
- Other assets will be considered on a case-by-case basis
Securitization investment opportunities
Third-party investors are welcome to participate with BDC to purchase offered securities and benefit from:
- Structuring expertise
- Market knowledge
- Transactions tailored to investors’ requirements
- Alignment of interests through “skin-in-the-game” by all stakeholders
If you are interested in accessing F-PIL funding through the BDC-TAO Partnership, please contact James Joyce at 416-309-9320 or visit www.taoasset.ca.