Secure and Flexible Finance Solutions
Integrated Wholesale Funding Agreement (IWFA)
The Integrated Wholesale Funding Agreement (IWFA) is a secured lending structure that enables the Borrower to lend based on pre-agreed terms. This arrangement offers the Borrower an opportunity to drive additional growth by transitioning away from conventional structures such as Block Discounting or Revolving Credit Facilities. The meticulously designed solution aims to facilitate expansion while ensuring secure lending practices.
Financial Flexibility: Mastering the IWFA for Advanced Lending Solutions
An IWFA is a unique financing solution where the Borrower or a Special Purpose Vehicle (SPV) can fund lending at a 100% advance rate. Conister Bank will hold legal title and equitable benefit by “looking through” to the underlying agreements. The Borrower takes full responsibility for service loans including originating, on-boarding, administering, collections, and enforcement.
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.
Explore our products
FAQs
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 costs and expenses are associated with the IWFA?
In an Integrated Wholesale Funding Agreement (IWFA), Borrowers are responsible for covering pre-lend audit fees and legal fees. Additional costs and fees are outlined and discussed during the onboarding process, ensuring transparency and understanding of all financial obligations associated with the agreement.
What are the financial covenants in the IWFA?
In the Integrated Wholesale Funding Agreement (IWFA), financial covenants include the facility security ratio, tangible net worth, and interest cover. These covenants are established based on the borrower's historical and forecasted performance to ensure financial stability and compliance. Conister Bank actively monitors adherence to these covenants throughout the life of the Facility to manage risk and maintain financial health.
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.