OCM Auto Financing Group Ltd. Negotiates $40 Million Revolving Credit Facility with Cortland Credit Lending Corporation

OTTAWA, ON, June 23, 2021 /CNW/ - OCM Auto Financing Group Ltd., an Ottawa-based auto lender, is pleased to announce that it has successfully negotiated a 40-million-dollar revolving credit facility with Cortland Credit Lending Corporation of Toronto, an alternative asset management firm that specializes in world-class fixed income strategies.

The sub-prime auto financing business in Canada is well-established, well-structured, and provides about $15 billion in loans annually. The industry is governed by a strict set of regulations at both the provincial and federal levels.

Andrew Abraham, the President, and CEO of OCM Auto Financing Group, has spent nearly a decade in the automotive financing sector, establishing programs and financing arrangements that connect drivers and lenders. OCM Auto Financing Group and OCM Auto Fund, a retail investment Fund, were formally established in November 2018.

"We are pleased to be working with Cortland," said Abraham. "Our business has been growing steadily since we launched OCM in 2018. In fact, the number of loans has more than doubled over the past year alone, despite the Covid-19 pandemic. We have had to hire more employees to keep up with the demand."

"This new 40-million-dollar credit facility, in addition to the funds we have raised from a number of individual investors, will allow us to grow our business considerably."

Since its inception in 2018, OCM has consistently generated gross annual returns of over 20%. Using a unique business model for securing and managing loans, OCM has been able to maintain a loan loss ratio of under 2%, well below industry standards.

"We are extremely happy to be working with Andrew and the OCM team," said Sean Rogister, CEO of Cortland Credit Lending Corporation. "They know the sub-prime business well, and their risk management procedures clearly meet our rigorous requirements at Cortland."

Cortland was successful over a number of other institutional lenders vying to provide a credit facility to the OCM Auto Financing Group.

The new 40-million-dollar revolving credit facility commenced on June 15, 2021, and will be in place for two years.

SOURCE OCM Auto Financing Group Ltd.