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
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.
We provide solutions that foster stability, drive growth, and enhance adaptability in the ever-changing financial landscape.
Product comparison
Block |
RCF |
IWFA |
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| 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)
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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 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.
How is security managed for a Revolving Credit Facility?
Conister Bank secures the Facility by taking a debenture over the Borrower, a share charge over its assets for Special Purpose Vehicle (SPV), and completing security with the Revolving Credit Facility (RCF). A collection account is set up for managing customer receipts, with Conister Bank as a signatory.
What audits are conducted for a Block Discounting Facility?
A pre-lend audit is conducted initially, followed by quarterly audits, which may include both remote and on-site visits. These audits review financial performance, regulatory compliance, customer journey, and agreement details.
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.
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.
What is an Integrated Wholesale Funding Agreement (IWFA)?
The Integrated Wholesale Funding Agreement (IWFA) serves as a financial arrangement where Conister Bank acquires equitable benefits and legal rights to the underlying agreements assigned to a Special Purpose Vehicle (SPV) through a Sale Purchase Agreement (SPA). This strategic arrangement not only creates a secure and organised facility for the Borrower but also streamlines their access to various forms of capital within a single unified framework. By transitioning away from traditional structures like Block Discounting or Revolving Credit Facilities, this meticulously designed solution enables the Borrower to drive additional growth while maintaining secure lending practices