VersaBank (VBNK.TO) rose 1.6% at last look Friday in Nasdaq pre-market trading as its subsidiary VersaBank USA National Association partnered with Watercress Financial Group, a point-of-sale originator of home improvement loans in the US.
Watercress will leverage VersaBank's Receivable Purchase Program (RPP) to fund a portion of its originations, VersaBank said.
"The U.S. represents the largest point-of-sale financing market in the world," said David Taylor, president and CEO of VersaBank. "So, we are proud to announce this partnership with Watercress Financial as we roll out our unique RPP solution, which we have proven out in Canada over the last 15 years."
Since VersaBank's RPP was first launched in Canada in 2010 and launched on a limited basis in the U.S. in April 2022, VersaBank said it has provided more than $10.5 billion (US$7.5 billion) in funding to North American finance companies.
"Home improvement financing has been one of the biggest drivers of the significant growth in our Canadian business in recent years, so we are naturally excited to team up with a fast-growing leader in this expanding market," Taylor said.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.