The OCM Auto Financing Group, an Ottawa-based subprime automotive lender, increased its fund size to $100 million, the company announced in April.
That increase comes thanks to funds received from accredited investors through a series of debenture offerings, and from senior lender CWB Maxium Financial Inc. — the latter being part of the Canadian Western Bank (CWB) Financial Group of companies.
“This facility with an established Canadian bank becoming our senior lender speaks to the quality and sustainability of our existing business model, and the confidence the bank has in our ability to continue to grow our business,” said OCM CEO Andrew Abraham in a statement.
OCM serves a number of dealers in Ontario and Québec. Its new credit facility will help the company increase its ability to expand its sub-prime auto financing business — an area that more and more dealers are catering to.
“Since the inception of the fund, more than 95 per cent of our original investor base is still invested with us today,” said Abraham in a statement. “We are thankful for the trust our initial investors showed in us and we look forward to them continuing to be an important part of our future growth.”
The subprime market remains hot in a post-pandemic world, providing dealers with an opportunity to help consumers and boost their own bottom line.
