Scotia Connect Commercial Financing Programs

Term Loans

A term loan through Scotia Connect provides a lump sum of capital repaid over a fixed schedule, typically three to seven years. The amortization can be structured as equal monthly instalments, quarterly payments, or a bullet repayment at maturity with interest-only payments during the term.

Interest rates are available on both fixed and floating bases. Floating-rate loans are typically priced at a spread above the Canadian Overnight Repo Rate Average (CORRA), which replaced the old CDOR benchmark. Fixed-rate terms are available for borrowers who need certainty on their debt service costs for budgeting purposes.

Collateral requirements depend on the borrower's credit profile. Investment-grade borrowers may qualify for unsecured facilities, while mid-market companies usually provide a General Security Agreement (GSA) covering all present and after-acquired assets. The documentation is standardized under LSTA-style formats, reducing legal costs and accelerating time-to-close.

Revolving Credit Facilities

A revolving credit facility operates like a large, flexible line of credit. You draw funds when you need them, repay when cash flow permits, and re-draw as required — all within a pre-approved limit. Scotia Connect's revolver product is ideal for businesses with seasonal or cyclical revenue patterns.

The facility is typically renewed annually, though longer-term commitments (two to three years) are available for established borrowers. Interest accrues only on the drawn portion, and a small standby fee applies to the undrawn commitment, ensuring that the capital remains reserved for your use at all times.

Within ScotiaConnect, you can draw down and repay your revolver in real time. The portal shows your current drawn balance, available capacity, and interest accrued to date. This transparency allows your treasury team to optimize borrowing on a daily basis, drawing exactly the amount needed and repaying excesses as soon as receivables clear.

Asset-Based Lending

For companies whose balance sheets are dominated by receivables and inventory, Scotia Connect's asset-based lending (ABL) program offers credit capacity that scales with your collateral pool. The borrowing base is recalculated regularly — typically monthly, but weekly for higher-risk exposures — using independently verified data.

The formula typically advances 85% of eligible receivables (those less than 90 days old, excluding related-party amounts) and 50–65% of eligible inventory (valued at the lower of cost or net orderly liquidation value). As your sales grow and your receivables pool expands, your borrowing capacity increases proportionally.

ABL is particularly valuable during periods of rapid growth, acquisitions, or turnarounds, when traditional cash-flow-based lending metrics may not capture the company's true capacity. Scotia Connect's ABL team includes field examiners who perform quarterly collateral audits to verify the integrity of the borrowing base.

Syndicated Facilities

When a single bank cannot or should not hold the entire credit exposure, Scotia Connect arranges syndicated facilities that distribute risk among multiple lenders. Scotiabank typically acts as the Administrative Agent and Lead Arranger, managing documentation, compliance, and waterfall payments on behalf of the lending group.

Syndications are common for facilities above $100 million, though club deals among two or three banks can be arranged for smaller amounts. The benefit to the borrower is access to a larger quantum of capital at competitive pricing, since banks are more willing to offer aggressive terms when they are sharing the risk.

The entire syndication process — from mandate letter through credit committee approval to closing — can be managed through ScotiaConnect's document portal, which provides a secure workspace for sharing term sheets, financial models, and legal documentation with all participating banks.