OTTAWA, Dec. 17, 2019 /CNW/ - OCM Auto Financing Group Ltd. (OCM), an Ottawa based sub-prime auto lender, has secured a $10 million credit facility from Toronto-based lender, Bridging Finance Inc. (BFI). BFI is one of Canada's leading credit management firms with over one billion dollars in assets.
Sub-prime auto financing in Canada is more than a 15 billion dollar industry that is both structured and stable. Although not part of public financial markets, the industry is governed by a set of stringent rules and regulations at both the provincial and national level.
Andrew Abraham, President and CEO of OCM, has been providing sub-prime auto loans since 2013. He stated, "We are thrilled to be working with BFI. This new credit facility, along with the money we have already raised, gives us the unique opportunity to lend up to 20 million dollars in this rapidly emerging market segment. In the coming year, we intend to raise even more funds so that we can provide the products and services necessary to meet the increasing demand."
While currently lending primarily in the Ontario market, OCM plans to expand further in Ontario and the GTA as well as in Alberta and Quebec. Since its inception in Q3 of 2018, OCM has produced gross returns of over 20% for the year and maintained a loan loss ratio of less than 1%.
Justin Fogarty, an Ottawa/Toronto based lawyer, and one of four directors of OCM, said "Considerable thought has gone into the OCM structure as well as the business and investor governance model. We anticipate OCM exceeding a quarter billion dollars' worth of sub-prime auto financing within the next five years."
SOURCE OCM Auto Financing Group Ltd.
For further information: Andrew Abraham at 613-755-4015 or [email protected]