Desjardins Privilege financing

This type of financing is a non-guaranteed loan for the purpose of providing admissible cooperatives with simple and timely financial support as part of a partnership with one of the Desjardins business financial centres. A type of quasi-equity, it combines the features of a loan with those of privileged participatory stake financing. Offered exclusively to companies and cooperatives whose main financial institution is Desjardins, it offers the cooperative a speedier and privileged financing process.

Main features

• Amounts of $200,000 to $500,000, up to 100% of the project cost

• Interest rate determined according to the level of risk

• Terms from 5 to 7 years

• Possibility for a capital repayment pause of 12 months

• Possibility for advance annual repayment up to 10% of the loan amount

• Fees for initializing and follow-up process

Admissibility criteria

• A cooperative operating in a sector of activity matching the investment policies of Capital régional et coopératif Desjardins

• A cooperative offering competitive products and services and operating in a market providing opportunities for growth

• A dedicated management and executive team that is looking for a business partner

• A cooperative with a minimum of 2 years of profitability, with stable and predictable sources of revenue that are large enough to meet additional financing obligations, once approved

• Credit history satisfactory to Desjardins criteria

• Respect for Desjardins’ financial ratios

Project goals

• Acquisition (of excess capacity, product, technology or even a company)

• Expansion and modernization

• Maintenance or improvement of capitalization and buy-back of equity of members who have left

• Improvement in operational funding

No banking institution can offer such a product.