(March 27 10:15 ET) – Bank of Montreal is rolling out asset-based lending for small- and mid-sized companies in an effort to build its franchise as banker to small business.
BMO is targeting companies with sales revenue of $10 million to $250 million for asset-based lending, which provides higher loan advance rates than banks otherwise allow. BMO says it’s a product that’s most useful for companies that are undergoing some sort of change, such as a recapitalization, buyout or high-growth.
BMO has experience in asset based lending through its Chicago-based Harris Bank subsidiary. “With less than $4 billion in asset based lending loans outstanding in Canada, we believe the market in this country is very under-served,” says Bob McGlashan, BMO’s senior vice-president, mid-market banking. “Asset based lending is an important part of our strategy to become the number one bank for small and mid-market businesses in the country,” he says.
-IE Staff