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 criteria is used to determine funding for a Revolving Credit Facility?
Funding is based on the eligible borrowing base, subject to adjustments for historic dilution factors like arrears and defaults, and the Facility's security cover.
What is the cover ratio in Block Discounting and how is it monitored?
The cover ratio, which ranges from 105% to 215%, is calculated by dividing the average Internal Rate of Return (IRR) of the gross receivables by the Purchase Price/Advance Rate. This ratio serves as a measure to ensure that the Facility is adequately secured by the Borrower's assets.
What documents are required to have a Block Discounting Facility?
Borrowers must submit Anti-Money Laundering (AML) and Customer Due Diligence (CDD) identification, proof of address, and additional relevant documentation to fulfill legal obligations. This adherence to regulatory and legal standards guarantees compliance.
What data requirements are involved in the IWFA?
The Borrower is required to provide a daily SQL backup, which is a full data extract from their loan management system or data warehouse. Conister Bank collaborates with the Borrower to establish a suitable data schema to ensure that all necessary data is accurately and securely managed.
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.
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