Post by
419lornestreet9 on Sep 16, 2021 8:57am
CHESSWOOD GROUP LIMITED ANNOUNCES FORMATION OF HOME FINANCE
Nice announcement. Another plus in Canada.
TORONTO, September 16, 2021 - Chesswood Group Limited (“Chesswood” or the “Company”) (TSX: CHW), a publicly traded North American commercial equipment finance provider for small and medium-sized businesses, announces the formation of a consumer home finance unit (Vault Home Credit Corporation).
Chesswood Group is pleased to announce the formation of Vault Home Credit Corporation – providing home improvement and other consumer financing solutions in Canada. Vault Home will be managed by John Stout and Kyle Wenn, the former founders of SNAP Financial Group, a leading Canadian home improvement and premium finance company that was sold in 2020. Prior to the sale, SNAP had gross receivables of approximately $750 million and annual originations exceeding $250 million.
Vault Home will leverage the brand and existing infrastructure of Vault Credit Corporation. “The formation of Vault Home will expand Chesswood’s footprint outside of equipment leasing, diversifying our portfolio and increasing our addressable market in Canada. We are particularly excited to be partnering with John Stout and Kyle Wenn, both of whom have strong track records in the home improvement market in addition to being industry veterans in Canada’s specialty finance sector” said Chesswood Group CEO Ryan Marr. Added John Stout, “We are excited to be back in the consumer financing business and in partnership with Chesswood Group. Our teams share a common culture and vision to build a specialty finance platform in Canada. Working with Chesswood, we look forward to providing best in class service and financial products to our network of dealers and partners.”
Vault Home has already signed a number of dealer contracts and is targeting first year originations of $60 million. Chesswood has a 51% ownership interest in Vault Home. It has committed to provide (including the amount contributed for its ownership interest) $2.5 million of capital.