Clip Money obtains $3M Business Development Bank loan

Executive Summary

• Clip Money Inc. secured a $3 million loan from the Business Development Bank of Canada (BDC) to fund working capital and growth initiatives.
• The loan carries a floating interest rate of BDC's base rate plus 1% (6.8% + 1% as of Oct 24, 2025), plus an additional non-compounding interest component of 7.45% on total indebtedness.
• The financing is non-dilutive, with no equity, warrants, or options issued; security is granted via a first-ranking interest in personal property and a guarantee from the US subsidiary.

Key Details

• Loan Amount: $3,000,000 USD.
• Lender: Business Development Bank of Canada (BDC), Growth and Transition Capital Team.
• Maturity Date: August 15, 2028.
• Repayment Structure: Principal may be repaid as a single balloon payment on the maturity date, along with all accrued and unpaid interest and additional interest.
• Interest Rate Structure:
  • Base Rate: BDC's floating base rate plus 1% per annum, calculated daily (6.8% + 1% = 7.8% as of Oct 24, 2025).
  • Additional Interest: 7.45% per annum (non-compounding), calculated monthly on the total outstanding indebtedness.
• Security & Guarantees:
  • Clip Money Inc. granted BDC a first-ranking security interest over all present and after-acquired personal property (subject to customary permitted priority liens).
  • Clip Money (USA) Inc. provided a 100% guarantee of amounts owing under the loan.
• Use of Proceeds: Working capital and growth initiatives.
• Fees and Compensation:
  • No bonus securities, finders' fees, warrants, options, or other equity/convertible instruments.
  • Monthly management fee: $500.
  • Standby fee: 3% per annum on the portion of the loan not advanced or cancelled, commencing October 10, 2026.
• Finder: No finder was engaged.

Notable Quotes

• Joseph Arrage, CEO and Co-Founder: "Securing non-dilutive growth capital from BDC is a major milestone for Clip and a powerful signal of confidence in our company and our trajectory. BDC has been an exceptional partner from day one, and working with their team to deepen our relationship has been a great process. They play a critical role in supporting high-growth companies as they scale, and we're proud to be building this next phase of growth alongside them."
• Sean Crouse, Director, Growth and Transition Capital, BDC: "Clip Money provides efficient and convenient deposit services to a diverse range of clients. With its unique self-service deposit network across North America, a strong management team and well-defined strategy, Clip Money is well positioned for growth. It's the type of ambitious company that BDC wants to invest in and work with to see them grow."