Toronto-based POS financing platform Financeit and Concentra, which provides wholesale finance and trust solutions for Canadian credit unions, announced that they’ve acquired TD Bank’s indirect home improvement financing assets, with a book value of approximately $339 million.
Approximately 45,000 TD loans were purchased by Concentra and over 800 merchant dealers were assigned to Financeit. After a transition period from TD, Financeit will take over the servicing of these loans and all future POS loans will originate on the Financeit technology platform.
This is Financeit’s first major acquisition since its launch in 2011. The company says that businesses focused in the areas of HVAC, pools and spas, windows and doors, roofing, decks and plumbing have been among the largest Financeit adopters.
“This exciting transaction strengthens our leading position in the home improvement financing space and our commitment to being a catalyst for the growth and success of this important community in Canada,” says Michael Garrity, founder and CEO of Financeit. “Since launching five years ago, Financeit has been singularly focused on being the best, most innovative merchant financing partner and this acquisition signals that our plans have moved into the fast lane.”
Current TD merchant partners can begin submitting loans on Financeit’s platform immediately, which includes mobile customer self-serve application options, paperless document signing, extended credit and 180-day approval windows. Loan origination on the TD platform will end in October 2016.
“We see this collaboration with Financeit as a way to accelerate Concentra’s business strategy to seek growth within the consumer financing market and diversify our wholesale business,” said Dallas Marce, Executive Vice-President of wholesale banking at Concentra. “Our next step is to leverage this acquisition to develop new investment offerings for credit unions that align with their business needs.”