VersaBank Expands Structured Receivable Program to Include Small Business Sector

VersaBank, a North American bank with a branchless, digital, business-to-business model, has significantly expanded its Structured Receivable Program (SRP) in the U.S. by launching funding to small business sectors, marking a pivotal move in its market strategy. This expansion, announced on September 22, 2026, comes as the bank aims to tap into the substantial growth potential of the small business segment, which has been a major contributor to its success in Canada since 2010.

Prior to this launch, VersaBank’s SRP had primarily focused on funding point-of-sale loans to the retail consumer sector. The new initiative, which includes the groundbreaking Real-Time SRP, is designed to address the unmet needs of finance companies that lend money to small businesses for significant purchases, such as commercial equipment and consumer home improvement projects. This move is expected to more than double the size of VersaBank’s market opportunity in the U.S., providing a robust pipeline of potential new SRP partners.

The Real-Time SRP is a revolutionary innovation in funding for point-of-sale financing companies, offering the same reliable, economically attractive funding solution as the Bank’s existing SRP, with the added benefit of eliminating the need for SRP partners to warehouse multiple receivables over a period of time, typically from five to 30 or more days. This enables the Bank’s SRP partners to finance individual loans within just hours, reducing the overall financing cost and the need for warehouse financing. It also further strengthens VersaBank’s exceptional risk mitigation capabilities by enabling the Bank to better leverage its own, internal AI platform through evaluation of the partner loans underlying the SRP receivables on an individual basis.

VersaBank’s Structured Receivable Program was specifically designed to address an unmet need in the market for consistently available, readily accessible financing with economically attractive capital. It has been deployed in Canada for over 15 years and was launched in the U.S. in August 2024. The program is intended to maximize return on equity while employing VersaBank’s proprietary, state-of-the-art banking technology.

VersaBank’s shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK. The company’s unique funding solution is expected to support its target to generate at least US$3 billion in additional U.S. SRP fundings next year. This expansion is part of VersaBank’s broader strategy to address underserved segments of the banking industry and leverage its proprietary technology to provide reliable, efficient, and economical funding solutions to point-of-sale companies.

In summary, VersaBank’s move to expand its SRP into the small business sector represents a significant step in its growth strategy, leveraging its innovative technology to meet the needs of a broader market. This initiative is expected to drive substantial growth and further solidify VersaBank’s position as a leader in the financial services industry.