Capital Opportunities

A credit facility is a structured financing arrangement in which an institutional capital provider extends a committed line of capital to a lender or specialty finance company. The facility is typically secured by the company’s underlying loan portfolio or receivables and is designed to fund originations on a revolving or term basis.

Facility structure

Revolving, term, or senior-mezzanine configurations

Borrowing base

The pool of eligible assets that determines available capital

Advance rates

Typically 70%–90% of eligible collateral

Cost of capital

SOFR plus spread, or a fixed rate depending on structure

Eligibility criteria

Asset-level standards for inclusion in the borrowing base

Covenants & triggers

Portfolio-level metrics monitored over the life of the facility

• Scalable origination volume without proportional equity dilution
• Improved return on equity through institutional leverage
• Consistent liquidity across market cycles
• Greater balance sheet efficiency

A forward flow agreement is a contractual arrangement in which a capital provider commits to purchase newly originated assets on an ongoing basis at predefined terms. Forward flow arrangements provide a predictable exit for originated deals and are often used in combination with a credit facility.

Purchase commitment

The volume of assets the buyer agrees to acquire over a defined period

Pricing structure

Purchase price methodology established in advance

Eligibility criteria

Asset-level requirements for qualifying deals

Settlement timing

Typically 0–5 days from closing

Servicing structure

Whether the originator retains servicing after the sale

True sale structure

Assets transfer cleanly off the originator’s balance sheet

• Immediate liquidity on originated deals
• Risk transfer to the purchasing counterparty
• A predictable, contractual exit strategy
• Scalable growth without accumulating portfolio risk