Channel closes CIBC equipment revolver, lifting total commitments to $135 million
The new equipment finance line complements an existing working capital facility. Brokers still need separate approval and payment details for customers using both products.
Channel closed a new revolving credit facility with CIBC Bank USA, bringing the bank's total committed financing to the small-business lender to $135 million. In its October 21 announcement , Channel said the new line supports equipment finance leases and loans. An existing CIBC facility funds its working capital products. Brokers should keep those two uses separate when discussing the announcement with customers. The $135 million covers CIBC's combined commitments to Channel. The release does not disclose the size of the new equipment facility or how much Channel can draw today. It gives no basis for promising a merchant a larger working capital approval. Channel sells both products through third-party partnerships. The company says it has funded more than $4 billion to over 43,000 businesses across more than 64,000 transactions since its founding in 2009. Those are cumulative activity figures, not the current loan book or cash available for new deals. Chief Financial Officer Robert Moskovitz said the expanded commitment gives the equipment finance platform flexibility to grow. He described CIBC as a longstanding partner familiar with Channel's business and risk management. That is management's account of the relationship; the announcement supplies no portfolio loss data or facility performance measures. The distinction between the two products is visible on Channel's product page . It advertises equipment financing from $10,000 to $250,000, with terms of 12 to 72 months. The options include equipment finance agreements, fair market value structures and conventional leases. Its working capital offering runs from $10,000 to $400,000 for uses such as inventory, project financing and bridging receivables. These are advertised customer products, not the terms of CIBC's loans to Channel. Channel also advertises bundled working capital with approved equipment finance agreements. A broker arranging both should establish which amount pays for the asset and which amount reaches the business for operating expenses. A combined customer proposal should still identify the purpose and payment schedule of each obligation. The release does not explain how bundled transactions qualify under either bank facility. For a restaurant buying an oven, for example, equipment delivery and the first customer payment may occur on different dates. A broker should confirm the vendor invoice, delivery and acceptance requirements, and when the financing payment begins. If the restaurant also needs operating cash, the file should show that request separately. This is a diligence example, not a disclosed Channel transaction or a statement of CIBC's conditions. The repayment review needs to include both obligations. The file should identify any deposit already paid to the vendor so the financed purchase amount reconciles to the invoice. Equipment can remain useful for years while an inventory purchase turns into cash much sooner. A longer equipment term does not establish that the business can carry an additional short-term payment. Bank statements and the existing debt schedule should support the combined payment burden, rather than treating each approval as evidence that the other is affordable. The announcement leaves the bank facilities' pricing, maturities and advance rates undisclosed. It also provides no allocation of the $135 million between the two lines. Without those details, outside readers cannot calculate incremental funding capacity or assume the equipment commitment can be redirected to working capital. Brokers can ask Channel for current product availability and closing conditions without presenting those unanswered questions as signs of distress. Opinion Confirm both funding paths before promising a closing A broker arranging equipment and operating cash should get written confirmation of each approval and its funding conditions. If the equipment can close before the working capital arrives, the customer needs to know that before accepting delivery and taking on the payment. Read more on small-business funding at plutusai.net .