Canadian Bank Backs CNH Capital

The federal Business Development Bank of Canada (BDC) has put up $300 million to help Case IH and New Holland dealerships across Canada finance purchases of equipment for their lots.

BDC is wholly owned by the federal government, provides financial and consulting services to Canada’s small- and medium-sized businesses, with a particular focus on the technology and export sectors.

The bank said it bought $300 million in dealer floor plan receivable-backed notes from CNH Capital Canada Wholesale Trust, a securitization trust operated by the Canadian wing of CNH Capital, the financing arm of Case and New Holland’s parent firm.

BDC’s funds are mainly to be used by licensed CNH dealers across Canada to finance the purchase of both new and used farm and construction equipment and parts, pending the items’ sale to end users. Proceeds may also be used by dealers to purchase equipment for either their rental businesses or rent-to-own programs, BDC said in a release.