Lender Finance
Lender finance is funding provided to non-bank lenders, fintechs, and specialty finance companies, secured against the loans they originate. Structured as a warehouse or back-leverage facility, it lets originators scale lending volumes using third-party capital rather than only their own balance sheet.
For a business that lends money, the loan book is the asset. Lender finance advances against that book so the originator can write more loans, improve return on equity, and build toward a securitisation or forward-flow arrangement. Facilities are highly structured, with eligibility criteria, advance rates, and performance triggers governing the book.
Indicative ticket
$20M-$200M
- Quantum
- Advance against the eligible loan book
- Term
- Revolving warehouse, 1-3 year commitments
- Repayment
- Revolving with the book; collections flow through the structure
- Covenants
- Eligibility criteria, performance and concentration triggers
- Security
- Charge over the loan book, usually via an SPV
- Pricing
- Floating rate; senior/mezzanine tranching available
Indicative only and subject to diligence. Actual terms depend on your business and the market.
Business profile
Who lender finance is for
- Non-bank lenders, fintechs, and specialty finance firms
- An originated loan book (consumer, SME, or asset finance)
- Demonstrable underwriting track record and cohort data
- Looking to scale origination beyond own balance sheet
Debt purpose
What the capital is for
- Scale loan origination without consuming equity
- Bridge toward a securitisation or rated facility
- Diversify funding away from a single source
- Improve return on equity of the lending business
Benefits
Why borrowers choose it
- Origination scales with third-party capital, not equity
- Terms improve as the book seasons and data matures
- SPV structure ring-fences risk from the operating company
- Natural pathway to cheaper capital via securitisation
When not to use it
An honest word of caution
- !Before the book has enough performance history to model
- !Where cohort-level data can't be produced for diligence
- !To fund operating losses at the platform level
How it compares
Lender finance is a specialised form of asset-backed lending where the collateral is a loan book rather than physical assets or receivables.
Terms, criteria, and sizing shown are indicative, not exhaustive, and subject to further diligence on the company and its assets.
Lender Finance FAQ
The questions founders and finance teams ask us most.
Still have questions? Talk to usLender finance is funding for non-bank lenders and fintechs, secured against the loans they originate. Structured as a warehouse or back-leverage facility, it lets originators scale lending using third-party capital instead of their own balance sheet.
Lender Finance by sector
Fintech & Specialty LendersCurious what lender finance could look like for you?
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