Neo Financial closes $185M credit card funding facility

Calgary-based Neo Financial said Thursday it has closed a $185-million syndicated warehouse facility led by ATB Financial, giving the fintech more funding capacity for its credit card receivables.

Neo said in a news release that ATB is the administrative agent, lead arranger and sole bookrunner. Four Canadian credit unions are in the syndicate: Vancity, Beem Credit Union, Alterna Savings and Credit Union, and Innovation Federal Credit Union.

The company also increased the facility’s accordion, a feature that lets a lender group expand a deal, so the total could grow to $250 million. A warehouse facility lets a company borrow against a pool of assets, in this case credit card receivables, without giving up equity or taking out a traditional loan.

“Credit unions are important partners in the financial system we want to help build,” said Allemander Neto, Neo’s chief financial officer. “We’ve invested in a credit card platform that other institutions can participate in.”

Neo co-founder Jeff Adamson said on social media the deal reflects a bigger goal of building a platform where other financial institutions can share in the growth of its card business, BetaKit reported. Neo did not outline the terms of the agreement, including pricing and length, and BetaKit said it had not heard back on a request for details.

The announcement follows a busy year for Neo’s card program. In April, the company completed a $150-million inaugural credit card securitization. In June, it launched four new credit cards, including one with United Airlines. The company says it has raised more than $650 million since it was founded in 2019 and serves more than one million customers.

Neo has also had setbacks. It lost loyalty partnerships with Tim Hortons and Hudson’s Bay Company this year, and laid off about 10 per cent of its staff in September, according to BetaKit.

The funding news comes as Ottawa tries to strengthen the financing available to Canadian scale-ups. The federal government this week unveiled a plan to boost venture capital, and other Canadian fintechs have been making moves, including Koho as it nears a bank bid. Toronto security firm 1Password also reported this week more than US$500 million in annual revenue.

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Sources: Neo Financial news release, Oct. 22, 2026; BetaKit.