VersaBank completed an additional $90 million funding tranche with Source One, a wholly‑owned subsidiary of ECN Capital Corp., bringing total funding with Source One to more than $90 million. The transaction is part of the bank’s strategy to scale its U.S. Receivable Purchase Program (RPP), which has become a key driver of growth in the high‑ticket point‑of‑sale financing market.
The new tranche follows a November 2025 funding of $61 million that pushed VersaBank’s U.S. RPP assets to $310 million, exceeding its fiscal‑2025 target of $290 million. With the latest $90 million, the bank’s U.S. RPP portfolio now sits at $293 million as of year‑end, positioning it to meet or surpass its goal of at least $290 million in U.S. RPP assets by the end of 2025 and to pursue a “several‑fold” increase in 2026.
Management highlighted the partnership as a validation of VersaBank’s low‑loss, cash‑holdback‑backed financing model. Founder and President David Taylor said the deal “underscores the confidence of our U.S. partners in the scalability and risk profile of our RPP solution.” ECN Capital CEO Steve Hudson added that the collaboration “builds on a trusted relationship and expands innovative lending options for point‑of‑sale finance companies.”
The funding expansion strengthens VersaBank’s competitive positioning in the U.S. market, where the RPP program launched in August 2024 has already attracted a growing base of point‑of‑sale finance companies. By increasing capital available to Source One, VersaBank can purchase more loan and lease receivables, thereby enlarging its credit asset base and generating higher net interest income.
The transaction also aligns with ECN Capital’s recent privatization by a Warburg Pincus‑led investor group, reinforcing the strategic fit between the two firms. As VersaBank continues to scale its digital, branchless banking model, the additional capital from Source One is expected to accelerate the bank’s U.S. expansion and support its broader growth objectives.
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