TORONTO -- Chesswood Group Ltd. says it is temporarily suspending its monthly dividend as part of its plan to resume funding new business in the U.S. as closure restrictions due to the pandemic begin to lift.

The commercial equipment finance company says the decision was part of a move to also draw on its revolving credit facility as its customers' businesses reopen.

The suspension of the dividend follows a reduction of its regular payment to shareholders in April to 3.5 cents per share from seven cents due to the pandemic.

Chesswood says it has granted payment deferrals and other accommodations to some of its customers, however the requests have decreased over the last few weeks. It says its focus will now turn to working with customers to return them to their regular payment schedules.

Chesswood says its operating subsidiaries have implemented several cost-cutting measures including staffing reductions, a temporary 20 per cent reduction in management compensation and temporary stop in payments of director compensation.

Chesswood and its predecessor, Chesswood Income Fund, have paid a dividend since first going public in 2006.