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XS Financial Doubles Revolving Credit Line

July 19, 2021, 07:05 AM
Filed Under: Cannabis
Related: XS Financial

XS Financial Inc., a specialty finance company providing equipment leasing solutions to cannabis companies in the United States, announced it has doubled its revolving credit facility from $2 million to $4 million, with an FDIC insured bank, which has a term of two years expiring in November 2022. XS Financial has also received an increased advance rate on the credit facility. Loans made under the revolving facility will bear interest at an annual rate equal to the greater of i) 8 percent per annum or the Wall Street Journal Prime plus 4 percent and may be prepaid with no penalty at any time.

The loans under the credit agreement contain customary financial covenants for transactions of this type, including limitations with respect to indebtedness, liens and disposition of assets.

XS Financial intends to use such loan proceeds, together with cash on hand, to fund additional equipment leases with new and existing customers.

Justin Vuong, Senior Vice President of Corporate Development at XS Financial, commented: “We are excited to have our funding capacity increased from our existing FDIC bank lender. This upsized line of credit is a positive sign of support behind our strong funding growth in recent months. XS Financial continues to increase its funding commitments to existing and new customers while remaining focused on client service. We look forward to expanding our relationship with our FDIC bank lender as we achieve new milestones.”

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