Financing
The following sections present the main changes that will impact your financing products, as well as information on products offered by National Bank. This includes new features that you should be aware of. As National Bank continues to make enhancements to its services and solutions, please refer to nbc.ca/lbc-business for future updates.
If you currently use letters of credit, letters of guarantee or replacement risk lines, please refer to Section 6. International Services.
Your current Laurentian Bank financing products will be migrated to similar or equivalent National Bank products. The same goes for your creditor insurance products, which will migrate from Industrial Alliance to National Bank Life Insurance Company. Please refer to the migration letter to find the effective date and time of the migration of your products and services.
After the migration, the terms and conditions of your current agreements with Laurentian Bank will remain the same until there is a change to your credit product, unless otherwise specified below. Pre‑existing fees will remain unchanged and may be reviewed at your next credit event, unless otherwise specified below. Any arrangements with third parties (including bonds and loan guarantees) will remain in effect for the remainder of your loan and will be reassessed at your next credit event.
Laurentian Bank’s base rates applicable to variable‑rate products will be replaced with National Bank’s corresponding base rates, as detailed below:
- Laurentian Bank’s Canadian prime rate will migrate to the National Bank Canadian prime rate.
- Laurentian Bank’s US prime rate will migrate to the National Bank US prime rate.
You can find National Bank rates at nbc.ca/primerate.
To ensure that you can easily refer to the history of your Laurentian Bank accounts, it is always good practice to download or print your statements and take note of your balances and recent transactions before the migration. Please note that loan statements are not accessible through National Bank’s online banking and will be mailed to you, on demand.
National Bank has a range of financing products to serve your short‑ and long‑term business needs. Our products and services can help you through all the life cycles of your business—from startup to growth, including business maturity and transfer.
National Bank offers a variety of payment frequencies to suit your business needs. If your current payment frequency does not match a payment frequency that is offered, we will do our best to find an equivalent payment frequency. If your current payment schedule cannot be replicated at National Bank, we will contact you to find a suitable solution.
National Bank substitutes may present features that differ from those of Laurentian Bank’s solutions. Please refer to the detailed tables below for more information.
4.1 Demand financing
To learn more about National Bank’s demand financing products, please refer to the table below.
Demand financing
| Laurentian Bank product | National Bank product | Product description | Details |
|---|---|---|---|
| Business line of credit (CAD) | Operating line of credit (CAD)
For more information, refer to nbc.ca/en/business/financing/short-term. |
An operating line of credit provides short‑term financing for a company’s day‑to‑day operations. Variable interest rate, calculated daily based on National Bank’s CAD prime rate, plus a risk premium on the portion of the facility used and invoiced monthly. Advances and repayments are made via the bank account in specified ranges (note rollovers). If you are not required to provide reports and are not subject to a borrowing base calculation, the available funds on your line of credit will correspond to the amount of your authorized credit limit. If your company is required to provide reports and is subject to a borrowing base calculation, the available funds on your line of credit will correspond to the lesser of:
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Interest is automatically collected monthly from the bank account. Interest will be collected on a business day. It will be calculated as if it were charged on the original collection date. Each month, you must deposit an amount equal to the interest charged the previous month, within 21 days of the interest being collected. No minimum principal payment is required. If your company is required to provide reports and is subject to a borrowing base calculation, the reports will be submitted via the Covarity app. |
| Business line of credit (USD) | Line of credit on account overdrafts (USD)
For more information, visit nbc.ca/en/business/financing/short-term. |
The USD line of credit on account overdrafts provides short‑term financing for the business’s day‑to‑day transactions and enables you to match USD inflows and outflows that are spread over time, thus avoiding foreign exchange‑related costs. The product is designed for companies with accounts receivable and accounts payable in USD. Variable interest rate, calculated daily based on National Bank’s US prime rate, plus a risk premium on the used portion of the facility, and invoiced monthly. If you are not required to provide reports and are not subject to a borrowing base calculation, the available funds on your line of credit will correspond to the amount of your authorized credit limit. If you are required to provide reports and are subject to a borrowing base calculation, the available funds on your line of credit will correspond to the lesser of:
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The USD line of credit will be offered via an authorized bank account overdraft. Interest is automatically collected monthly from the bank account. Interest will be collected on a business day. It will be calculated as if it were charged on the original collection date. Each month, you must deposit an amount equal to the interest charged the previous month, within 21 days of the interest being collected. No minimum principal payment is required. If you are required to provide reports and are subject to a borrowing base calculation, the reports will be submitted via the Covarity app. |
| Demand Loan (CAD) | Demand loan (CAD)
For more information, contact National Bank. |
Non‑revolving demand financing authorized for a defined period of time, with or without specific repayments before the final repayment date for a short‑term, one‑time or seasonal financing requirement to facilitate cash management.
The typical duration is less than one year. |
Not applicable |
4.2 Term financing
For more information on National Bank’s term financing products, please refer to the table below or contact us.
Term financing offer
| Laurentian Bank product | National Bank product | Product description | Details |
|---|---|---|---|
| Fixed-rate and variable-rate term loan (CAD and USD) – without revolving privilege | Fixed-rate or variable-rate term loan (CAD and USD)
For more information, visit nbc.ca/en/business/financing/long-term. |
Term loans provide medium‑ or long‑term financing for tangible assets and certain intangible assets, are generally granted for periods of one year or more and are usually repayable in regular instalments spread out over the term of the loan. |
Interest calculation is based on:
Starting from the first payment following the migration, the date of your monthly payments will be the 30th day of each month, if it is currently “the last day of the month” or the 29th, 30th or 31st day of the month. |
| Fixed-rate and variable-rate term loan (CAD) – with revolving privilege | Revolving term credit (CAD)
For more information, contact National Bank. |
Revolving credit to finance the acquisition of fixed assets and that may be subject to reductions based on a set frequency rather than a repayment schedule.
Variable interest rate, calculated daily based on National Bank’s CAD prime rate, plus a risk premium on the portion of the facility used, and invoiced monthly. |
Not applicable |
| Commercial mortgage loan (CAD) | Commercial mortgage loan (CAD) | Financing for the acquisition of immovables where the immovable is a guarantee of payment of the debt. |
Your interest rate will continue to fluctuate based on changes in the National Bank prime rate.
If the date of your monthly payments is currently “end of month,” or the 29th, 30th or 31st day of the month, it will be changed to the 28th day of each month starting from the first payment following the migration. Weekly or biweekly payments scheduled on weekends will be debited on the preceding Friday. At Laurentian Bank, if your variable‑rate mortgage payments are fixed, after the migration to National Bank, your payments will vary. A one‑time adjustment to the amount of your instalment payments may be made in the month following the migration of your mortgage, even if the National Bank prime rate remains unchanged. National Bank will send you an annual statement in February 2027 covering the period between the migration date and December 31, 2026. If your loan is repaid before December 31, 2026, the statement will be issued the month after the repayment and will cover the period from migration until full repayment. Laurentian Bank will also send you an annual statement covering the period from January 1, 2026, to the migration date. The fees applicable to commercial mortgage loans (CAD) are found in the table below. |
Please consult the table below for the fees applicable to commercial mortgage loans (CAD).
Fees applicable to commercial mortgage loans (CAD)
| Fee description | Fees applicable at Laurentian Bank | New fees applicable at National Bank |
|---|---|---|
| Renewal or early renewal fee | $85.00 | Minimum of $500.00 |
| Fee for processing a payment declined by another financial institution | $65.00 | $45.00 |
| New advance of funds on an existing loan | $85.00 | Option not available |
| Change to payments |
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| Administrative fees |
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| Discharge fee |
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Document review fees and fees to prepare resolutions/powers of attorney during a mortgage discharge
Fees to prepare and register a mortgage discharge (Ontario only)
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4.3 Creditor insurance
The insurance coverage you hold with Industrial Alliance Insurance and Financial Services Inc. will now be provided by National Bank Life Insurance Company, your new insurer. National Bank Life Insurance Company will send you a new insurance certificate.
For any new claims or questions about your insurance after the migration, please call National Bank Insurance’s Client Experience Centre (CEC) at 1-877-871-7500 (toll‑free).