DealNet Capital Corp. (CNSX:DLS) has moved one step closer to launching the financial services component of its One Dealer business, saying it received a signed commitment letter from a "Schedule A Canadian bank" to provide $12 million in underwriting capital plus a $3 million revolving warehouse line.
"This is a significant milestone for our One Dealer business unit that accelerates our ability to onboard dealers and launch the financial services component of our business plan," said president of DealNet, Bob Cariglia, in a statement Wednesday.
The company's One Dealer subsidiary provides a full suite of services and financing solutions for heating, ventilation and air conditioning (HVAC) dealers and their customers, underpinned by the controls and processes of DealNet's business process outsourcing (BPO) unit to serve its own consumer financing customers.
One Dealer Financial Services is the arm that provides consumer financing and underwriting needs. DealNet had secured the underwriting proposal earlier this year, and announced the initial news in June.
The company said Wednesday the consumer financial services arm has accepted the commitment letter on the basis that the lender will purchase tranches of leases, loans or rental contracts, and the related receivables of various HVAC assets.
DealNet has recently focused its investments towards the thriving North American BPO market, as well as the consumer financing market by leveraging its recently acquired BPO division - OC Communications Group (OCCGI).
Indeed, the BPO unit has recently been bringing home the bacon for DealNet. Aside from the two $10 million contract wins in the last few months -- one of which was with a U.S. based Fortune 500 financial services client -- it also signed a three-year contract of up to $3 million. That’s $23 million in recurring revenue from inking multiple long term contracts with significant brands, all of this on top of the existing backlog.