Jim Case sees opportunity in this uncertain economic climate.
The founder and CEO of TFG Financial said a broader group of companies are seeking the flexibility his company offers, and he plans to expand the Vancouver-based company across the United States.
“Today's opportunity lies in the convergence of speed, asset insight, and customized structure,” he tells CFO Leadership.
TFS Financial is a member of the Travelers Group of Companies and provides capital solutions to traditional small and medium-sized businesses in North America. Case founded Travelers in 1986 and led successful partnerships and exits with Scotiabank, Coast Capital Equipment Finance Ltd., and Ritchie Bros. Financial Services.
Could you tell us about the history of your company and how it has grown?
Travelers Financial Group, now called TFG Financial, traces its origins back to 1984, when it launched the office supplies company's captive finance division to help small businesses purchase office equipment. Over the next 40 years, this effort has evolved into a diversified organization of more than a dozen companies with operations in Canada and the United States, offering equipment financing, auto financing, transition financing, and business process outsourcing.
TFG provides financing and leasing for a variety of income-generating assets, including trucks, trailers, light to heavy construction equipment, manufacturing equipment, and material handling equipment.
With the support of our affiliates, TFG also supports numerous OEM captive financing and vendor programs that require a complete credit spectrum solution for their customers.
We use our proprietary match engine technology, which combines analytics and learned behavior, as the front end of our process to cover the full spectrum of credit.
We offer similar programs in the United States through our U.S. affiliate, TFund Capital Corp.
How have you built your business?
Through direct and indirect growth, program starts exceed $1 billion annually. Today, we have more than 250 employees and a new headquarters in Vancouver's Financial District. Our growth reflects our commitment to creative, flexible capital solutions and our belief that with the right support, small and medium-sized businesses can grow their businesses and prosper beyond expectations.
What are some of the challenges in your industry and how are you overcoming them?
Today's markets are more volatile than ever, with global trade uncertainty, supply chain disruptions, interest rate fluctuations, and credit stress in asset-intensive sectors such as transportation and construction. We overcome these challenges by relying on a deep understanding of historical asset dynamics, agile underwriting, agile structuring, and the ability to understand how economic and geopolitical cycles impact our clients' businesses.
Unlike traditional lenders, we can pivot quickly to customize financing to fit your evolving business realities. Our risk management strategy allows us to navigate uncertainty with creativity and speed, allowing our customers, especially small and medium-sized businesses, to access essential capital even when traditional banks cannot support their needs for speed and flexibility. This responsiveness is a key element of our enduring competitive advantage.
What opportunities exist in your industry?
The equipment and asset financing landscape is moving beyond alternative and private credit to more specialized financial institutions. Small and medium-sized businesses across all industries are seeking alternatives to traditional bank financing and are seeking flexible, relationship-driven financing models.
Our recent expansion into medical device financing and off-balance sheet rental-purchase option financing demonstrates this by leveraging our strengths in high-value asset-backed transactions and filling gaps in evolving traditional bank financing models.
Additionally, we are expanding across borders, bringing Canadian private capital and RPO strategies to the United States, where demand for creative solutions is growing. Today's opportunity lies in the convergence of speed, asset insight, and customized structures.
What will you focus on in the future?
We are embarking on a new era of cross-border growth and diversification. The company plans to expand into adjacent asset-intensive industries where flexibility and capital are limited. We will expand our presence in the United States, strategically deploy private credit, seek out strategic partners for support on both sides of the border, and continue to integrate financing and business process outsourcing.
At the same time, we are strengthening our digital platform and AI-informed underwriting to deliver funds faster and more accurately. Overall, we remain committed to our core mission of providing creative and reliable capital to small and medium-sized businesses, enabling their growth journey no matter the circumstances.
