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 are the costs and expenses associated with Revolving Credit Facility?

The Borrowers are responsible for pre-lend audit fees and legal fees. An arrangement fee of 1% of the facility is payable upon signing, with other fees discussed during the onboarding process.

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.

What are the costs involved with a Block Discounting Facility?

Costs include pre-lend audit fees, legal fees, and an arrangement fee of 1% of the facility upon signing the agreement. Costs vary based on the product lifecycle and company’s performance and are negotiated during the onboarding process.

What is Block Discounting?

Block Discounting is a financial solution in which a finance company, like Conister Bank, buys the rights to the receivables from finance agreements held by the Borrower. This arrangement allows the borrower to access capital immediately while retaining the management of customer relationships and contracts. This type of financing is beneficial for businesses that require liquidity but wish to continue managing their customer interactions and servicing the original agreements

What is the buyback obligation in the IWFA?

Under the terms of the IWFA, the borrower is required to buy back any loans that reach 90 days in arrears or fail to meet the agreed-upon Eligibility Criteria.

What documents and conditions are required for the IWFA?

The Borrower must provide a range of legal documents to satisfy conditions precedent and achieve legal completion. These documents include:

  • Anti-Money Laundering (AML) and Customer Due Diligence (CDD) identification documents to verify the borrower's identity.
  • Valid proof of address documentation.

Additionally, the following conditions may be required:

  • Agreements with Software as a Service (SaaS) and Systems, Underwriting, and Networking (SUN) providers.
  • Any other necessary legal documents as stipulated by Conister Bank.

These requirements ensure compliance with regulatory standards and the secure execution of the Integrated Wholesale Funding Agreement.