Pivotal Capital, a wholly-owned subsidiary of Axis Auto Finance, secured a funding facility with a Canadian Schedule 1 bank.

Pivotal Capital is an independent Canadian commercial equipment finance company active across the transportation, construction, manufacturing and food services sectors. The facility adds to Pivotal Capital’s existing funding relationships.

The facility includes a purchase facility with capacity of up to $40 million in annual purchases and a warehouse facility with a limit of $5 million. Pivotal Capital will use the facility to finance and purchase the payment receivables generated from commercial finance contracts.

“This facility represents a turning point for Pivotal. This is the first step in becoming Canada’s largest independent equipment finance company. This has been our plan from the beginning, and I am proud to see it evolving,” Steven Koster, president of Pivotal Capital, said.

“This facility takes me back to my roots. I have built this before at Element in 2010 and we at Pivotal will build it again,” Todd Hudson, CEO of Pivotal Capital, said. “I have surrounded myself with the best-in-class originations, credit, operations and management teams. The market needed a significant independent presence and we have answered the call.”