Accord Financial has reached an agreement with its lending syndicate to extend its main credit facility by eight days as it works to finalize a broader amendment that would push the facility’s maturity to February 2026.
The short-term extension provides additional negotiation time for a comprehensive refinancing plan, which includes proposed amendments to the lender’s 10% debt due Jan. 31, 2026, according to a Dec. 15 Accord release. As part of that plan, the company will seek approval to increase the debentures’ interest rate to 12% and extend the maturity date by six months, while deferring the Dec. 31, 2025, interest payment due to restrictions under its bank facility.
The lender doesn’t expect to be able repay the debt on Jan. 31, 2026, according to the release. Approval of the amendments would avoid a default, while providing time to complete its refinancing strategy and pursue repayment.
Refinancing plan
Accord’s refinancing plan includes the sale of non-core businesses and assets, according to the release. Following those transactions, the board believes its capital structure would be better positioned to refinance.
On Dec. 11, the company entered into a nonbinding letter of intent to sell a majority of the loan portfolio of Accord Financial Inc., according to the release. The transaction would refocus the business on the Canadian market and reduce outstanding debt by about 45 million Canadian dollars ($32.7 million).
Accord Financial provides commercial finance solutions across asset-based lending, factoring, inventory finance, equipment finance in Canada, trade finance and film and media finance, serving small and mid-sized businesses.
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