VersaPay, a provider of cloud-based invoice-to-cash solutions, closed a $4 million credit facility with National Bank of Canada‘s Technology and Innovation Banking Group, which matures in April 2021 and is extendable.
“I’m pleased we’ve been able to put this facility in place with a great partner like NBC,” said Craig O’Neill , VersaPay CEO. “It’s an efficient way to optimize our working capital and a testament to the growth we’ve achieved in our recurring revenues from ARC.”
The facility is secured by assets of VersaPay and its U.S. subsidiary, which primarily consists of intellectual property and accounts receivable. The proceeds will be used for general corporate and working capital purposes.
The company can draw down funds as required based on a multiple of the monthly recurring revenue of its ARC software product. Pricing is set at the prime rate plus 2.0% per year and contains customary financial and restrictive covenants.
