Canada’s VersaBank announced on Tuesday that it had partnered with Watercress Financial Group LLC, a point-of-sale originator of home improvement loans in the U.S., to fund a portion of Watercress’ consumer originations through the bank’s Receivable Purchase Program.

The bank said funding would commence immediately.

“The United States represents the largest point-of-sale financing market in the world,” David Taylor, president and chief executive officer of VersaBank said in a news release. 

“So, we are proud to announce this partnership with Watercress Financial as we roll out our unique RPP solution, which we have proven out in Canada over the last 15 years,” he added.

VersaBank said Watercress Financial is its first American partner after acquiring US Bank. 

“Home improvement financing has been one of the biggest drivers of the significant growth in our Canadian business in recent years, so we are naturally excited to team up with a fast-growing leader in this expanding market,” Taylor continued.  

VersaBank's Receivable Purchase Program provides a digital funding solution for finance companies offering loans for significant consumer and small business purchases, like home improvement and equipment.

Designed to meet the demand for accessible, cost-effective capital, the RPP leverages VersaBank's banking technology. At the end of last October, VersaBank said its RPP portfolio exceeded US$2.4 billion and has grown at over 27% annually over the last five years. 

Since its launch in Canada in 2010 and a limited launch in the US in April 2022, VersaBank has provided over US$7.5 billion in funding to North American finance companies.

"We believe Watercress management's long and successful history of originating and servicing home improvement loans in North America, along with our previous success of working with VersaBank, makes us an ideal partner for VersaBank's expansion into the U.S.," said Matt Melius, CEO of Watercress Financial. 

"This new funding program continues our efforts to expand and diversify funding sources,” he added. “We appreciate VersaBank's collaborative approach and demonstrated reliability, proven performance, and long-term relationship orientation." 

For more information, visit watercressgroup.com.