Independent finance company Accord Financial and Concentra Bank formed a strategic alliance that will allow both parties to deliver a broader range of banking and financing solutions to their clients, enhancing the value they deliver in their respective markets. Accord and Concentra will also consider developing new products together as opportunities arise.

Additionally, the alliance will capitalize on significant cross-referral opportunities, while Concentra’s investment in Accord will boost its capital base, paving the way for continued growth.

Accord’s asset-based lending, factoring and equipment finance solutions have been embraced by small and medium-sized businesses throughout Canada and the U.S. Through this strategic alliance, Concentra will offer Accord’s suite of innovative solutions through its network of more than 200 credit unions, serving 5.5 million customers, of which approximately 10% are commercial clients.

“This alliance is an outstanding opportunity for us to reach a broad cross-section of the Canadian economy, especially in areas and industries under-served by the traditional banks,” said Simon Hitzig, Accord president and CEO. “We look forward to enhancing the business relationships each organization already has, and creating new ones together.”

Concentra, as a Schedule I chartered bank, offers a comprehensive suite of banking products, including deposits, cash management, senior bank debt, and trust services. Accord plans to offer these same products to its coast-to-coast network of business clients who would benefit extensively from these solutions.

“This alliance enhances the solution set we can deliver through the credit union system and gives us access to a new channel to deliver our unique banking solutions,” said Concentra President and CEO Don Coulter. “Both organizations bring an entrepreneurial spirit to serving Canada’s business community, an approach that naturally puts us on the same page as our clients.”

In connection to this strategic partnership, Concentra has invested $5 million in unlisted Series B convertible unsecured subordinated debentures via private placement. The debentures have an interest rate of 7.00%, will mature on December 31, 2023 and interest will be payable semi-annually in arrears on June 30 and December 31 of each year, commencing December 31, 2019. The initial conversion price will be $13.50 per common share, and will be subject to adjustment in certain circumstances.

Accord will use the net proceeds of the private placement of debentures to repay a portion of its bank indebtedness and for general and working capital purposes.

INFOR Financial acted as the exclusive financial advisor to Accord in connection with the establishment of the strategic partnership and the private placement.

Founded in 1978, Accord Financial is an independent commercial finance companies which serves a broad base of the country’s most dynamic industries.

With more than $35 billion of total assets under administration, Concentra is a provider of wholesale banking and trust solutions to credit unions across Canada.