Structured Finance

Specialist Lender Solutions

Our range of products are adapted for specialist lender, providing funding solutions to enhance operational stability and foster future growth.

  • Flexible Financing Options
  • Bespoke Facilities 
  • Capital and Growth Support
Financing Designed for Business Growth

Our Structured Finance Facilities provide a range of flexible financing options 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.

Product comparison

 

Block

RCF

IWFA

Facility size <£10m <£10m £10m - £100m
Rate Competitive Competitive Competitive
Agreement term Evergreen 12 months + term out period Matches borrowing base
Underlying loan term/s 3 - 84 months 3 - 84 months Matches borrowing base
Repayment Capital + Interest Interest only Matches underlying loan
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
Other mandatory security *1 None Repayment reserve Cash Reserve
Defaulting borrowing base remedied by Replacement paper Agreements are bought back at par value Agreements are bought back at par value
Multiple funders Yes No, not to the bankruptcy remote SPV No, not to the bankruptcy remote SPV
Appropriate structure Corporates / SPV Corporates/SPV  Corporates /SPV
Advance rate 70-95% 70-95% 100%
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
Reporting frequency Monthly Monthly Monthly
Audits 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
Facility fee 1% 1% 1%
Annual / renewal fee 0.25% - 0.50% / N/A N/A / 0.50% N/A / 0.50%
Increase fee (pro rata) 1% 1% 1%
Options Review N/A N/A Yes
Early settlement discount No Yes iro £35,000 + VAT + disbursements
Non-utilisation fee/commitment fee N/A iro 3% pa up to 3%
Legal documentation *2 iro £3,000 + VAT + Disbursements iro £40,000 + VAT + Disbursements iro £45,000 + VAT + Disbursements
Legal due diligence *2 FOC to low cost iro £3,000 + VAT + disbursements iro £3,000 + VAT + disbursements
Timescale to implement *3 4 weeks plus 8 weeks plus 24 weeks plus
Standby Servicer Agreement No TBC in prequalification Yes
Open Banking Yes, or bank statements Yes Yes
Credit Criteria / Eligibility Criteria Yes / No No / Yes  No / Yes
Financial and non-financial covenants Yes Yes Yes

 

(iro = In the region of)

(foc = Free of Charge)

*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.

   

*2: These are examples but costs will vary subject to the size and type of the proposal.

   

*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 financial covenants are involved in a Revolving Credit Facility?

Financial covenants, such as facility security ratio, tangible net worth and interest cover, are set at the outset based on historical and forecasted performance. Conister Bank monitors compliance with these covenants throughout the Facility's life.

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 happens if a Block Discounting Facility goes into default?

If default happens, the Borrower has the option to substitute the defaulted agreement with additional receivables (unencumbered assets), which are then transferred to Conister Bank. This arrangement allows for the maintenance of agreed-upon covenants and the security of the Facility.

What responsibilities does the borrower have in servicing the loans under the IWFA?

The Borrower is fully responsible for servicing the agreement, including origination, onboarding, administration, collections, and enforcement. This includes managing all customer queries and complaints. A standby servicer is appointed, and a tripartite agreement including Conister Bank is signed before the Facility goes live.

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.