OCM Auto Financing Group Increases Fund Size to $100 Million
OTTAWA, ON, April 20, 2023 /CNW/ - OCM Auto Financing Group Ltd. (OCM), an Ottawa-based sub-prime auto lender, is pleased to announce that it has recently increased its fund size to $100 million. This amount is a combination of funds received from accredited investors through a series of debenture offerings, as well as from a senior lender, CWB Maxium Financial Inc., which is part of the Canadian Western Bank (CWB) Financial Group of companies.
This new credit facility will significantly increase OCM's ability to expand its rapidly growing sub-prime auto financing business. "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.
Initially, OCM was financed primarily through a series of debentures purchased by accredited investors. "Since the inception of the fund, more than 95% of our original investor base is still invested with us today. 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," said Abraham.
OCM serves a large number of auto dealers in Ontario and Quebec. Demand for loans for pre-owned vehicles remains high from individuals who may not qualify for financing from traditional banks and OCM is proud to be able to provide financing to these individuals.
Started in Ottawa in 2018, OCM Auto Financing Group Ltd. provides loans for pre-owned vehicles to individuals who cannot access bank financing. OCM works with auto dealers in Ontario and Quebec to assist them in completing sales transactions with their customers. A network of in-person OCM dealer representatives helps expedite approvals of loans that meet OCM's rigorous creditworthiness standards.
The sub-prime auto financing industry in Canada is governed by a set of stringent rules and regulations at both the provincial and federal level.
SOURCE OCM Auto Financing Group Ltd.
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