VersaBank’s Point of Sale Financing division operates its Receivable Purchase Program. This program involves purchasing loan and lease receivables from finance companies that operate throughout Canada and the USA in a variety of industries. Many of these finance companies take advantage of new technologies to reach their customers. In this way, VersaBank indirectly provides the much needed capital for small businesses and greater choice for consumers across Canada and the USA.
VersaBank has developed state of the art, high capacity systems that allow it to quickly process large numbers of small ticket loan and lease receivables. Credit risk is reduced to acceptable levels by cash deposits made by the originators of the loan and lease receivables to offset potential credit losses.
VersaBank is at the leading edge of this method of financing and this business is now a major portion of the bank’s total assets and revenue stream.