Specialist Lender Solutions
Funding for Non-Bank lenders across asset classes serving business and consumer markets.
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Senior and junior debt for growth
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Flexible to lending strategies
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Built-in risk resilience
Our Structured Finance Facilities provide a range of flexible financing options including senior and junior debt structures. Designed to meet the unique needs and goals of your business, supporting everything from cash flow management to project-specific financing.
Your business can effectively manage and optimise financial risks, protecting against market volatility and enhancing financial stability.
Gain access to crucial capital through structured finance solutions, empowering your business to pursue ambitious growth strategies, enter new markets, and innovate, without diluting ownership or compromising on financial health.
We provide solutions that foster stability, drive growth, and enhance adaptability in the ever-changing financial landscape.
Product comparison
Block |
RCF |
IWFA |
Mezzanine Finance |
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| Facility size | <£10m | <£10m | £10m - £100m | <£10m |
| Rate | Competitive | Competitive | Competitive | Risk‑adjusted mezzanine pricing (above senior, below equity) |
| Agreement term | Evergreen | 12 months + term out period | Matches borrowing base | 12‑month revolving period + committed term‑out/amortisation period |
| Underlying loan term/s | 3 - 84 months | 3 - 84 months | Matches borrowing base | 3–84 months |
| Repayment | Capital + Interest | Interest only | Matches underlying loan | Interest‑only during revolving phase; principal repaid via portfolio run‑off during term‑out |
| Security on agreements | Assign as security via a Block Charge | Debenture on company. Guarantee from Parent, Share Charge over SPV, SPA between Parent and SPV | Assign beneficial title with rights of legal title | Full security over SPV: debenture, share charge, assignment of loan receivables |
| Other mandatory security *1 | None | Repayment reserve | Cash Reserve | Repayment reserve, bank account control, cash sweep mechanics |
| Defaulting borrowing base remedied by | Replacement paper | Agreements are bought back at par value | Agreements are bought back at par value | Variable |
| Multiple funders | Yes | No, not to the bankruptcy remote SPV | No, not to the bankruptcy remote SPV | SPV only has one senior funder + one mezzanine funder |
| Appropriate structure | Corporates / SPV | Corporates/SPV | Corporates /SPV | SPV |
| Advance rate | 70-95% | 70-95% | 100% | Residual tranche beneath senior advance rate (mezz determined by remaining LTV) |
| Uses of facility | Regulated & Non-Regulated Loans HP, S&LB, etc | Regulated & Non-Regulated Loans HP, S&LB, etc | Regulated & Non-Regulated Loans HP, S&LB, etc |
Funding of regulated and non‑regulated loans: HP, leasing, S&LB, consumer/SME credit (subject to eligibility) |
| Reporting frequency | Monthly | Monthly | Monthly | Monthly |
| Audits | Quarterly | Quarterly | Quarterly | Quarterly |
| Pre-lend audit *2 | £2,000 to £11,700 + VAT+ disbursements | £10,700 - £35,000 + VAT + disbursements | £10,700 - £65,000 + VAT + disbursements | £15,800 – £16,800 + VAT + disbursements |
| Facility fee | 1% | 1% | 1% | 1% of facility limit |
| Annual / renewal fee | 0.25% - 0.50% / N/A | N/A / 0.50% | N/A / 0.50% | N/A / 0.50% |
| Increase fee (pro rata) | 1% | 1% | 1% | 1% on incremental uplift |
| Options Review | N/A | N/A | Yes | N/A |
| Early settlement discount | No | Yes | iro £35,000 + VAT + disbursements | Yes |
| Non-utilisation fee/commitment fee | N/A | iro 3% pa | up to 3% | iro 3% pa |
| Legal documentation *2 | iro £3,000 + VAT + Disbursements | iro £40,000 + VAT + Disbursements | iro £45,000 + VAT + Disbursements | Approx. £35,000 + VAT + disbursements |
| Legal due diligence *2 | FOC to low cost | iro £3,000 + VAT + disbursements | iro £3,000 + VAT + disbursements | Approx. £3,000 + VAT + disbursements |
| Timescale to implement *3 | 4 weeks plus | 8 weeks plus | 24 weeks plus | 12 weeks plus |
| Standby Servicer Agreement | No | TBC in prequalification | Yes | Required |
| Open Banking | Yes, or bank statements | Yes | Yes | Yes |
| Credit Criteria / Eligibility Criteria | Yes / No | No / Yes | No / Yes | Yes |
| Financial and non-financial covenants | Yes | Yes | Yes | Yes |
(iro = In the region of)
(foc = Free of Charge)
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*1: All products will require companies to undergo a formal credit assessment where additional security may be requested including personal and or corporate guarantees, subordinated loan agreements, etc. |
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*2: These are examples but costs will vary subject to the size and type of the proposal. |
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*3: The timescale is an estimate based on best endeavours with appropriate engagement from all parties. |
There are several external parties involved in the workflow which may delay the implementation timeline for reasons outside of our control.
FAQs
What documentation is required for a Revolving Credit Facility?
The Borrowers must provide necessary legal documents, including AML/CDD identification and proof of address. A legal opinion confirming the Special Purpose Vehicle (SPV) documentation's compliance and enforceability is also required.
What is a Revolving Credit Facility?
A Revolving Credit Facility (RCF) is a financing solution that allows a Borrower or a Special Purpose Vehicle (SPV) to fund lending activities. It involves a single facility agreement with Conister Bank, utilising the borrower's own paperwork and systems for underlying agreements. In the case of an SPV structure, these agreements are transferred through a Sale Purchase Agreement (SPA). This setup facilitates continual access to funds, enabling borrowers to manage cash flow efficiently and maintain their operational systems.
How is the Borrower's financial performance monitored throughout the Block Discounting Facility?
Conister Bank reviews monthly management information and loan book data to monitor financial and non-financial performance covenants. Borrowers can provide open banking permissions as an alternative to monthly bank statements.
What are the repayment terms for a Block Discounting Facility?
Borrowers are required to make payments towards both principal and interest over a period that matches the average duration of the agreements purchased, with a maximum term of seven years. This structure ensures a steady reduction of the Facility balance over time.
For our Interest-Only product, borrowers are required to make interest-only repayments (with capital due on the final repayment).
How is security managed in the IWFA?
In an Integrated Wholesale Funding Agreement (IWFA), Conister Bank manages security by taking a debenture over the Special Purpose Vehicle (SPV), imposing a share charge over its assets, and securing the arrangement through the IWFA. Additionally, a collection account is established for handling customer receipts, with Conister Bank either serving as a signatory or directly owning the account. This approach ensures that the agreements are well-secured and that Conister Bank maintains control over the flow of funds.
How are audits and pre-lend audits conducted under the IWFA?
During onboarding, a pre-lend audit and a Hard Stop Exit Plan are conducted. Thereafter, quarterly audits—both remote and on-site—are performed. These audits focus on various aspects such as regulatory compliance and financial performance to ensure ongoing adherence to the terms of the Facility.
Get in touch
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