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.
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FAQs
What are the cash reserve requirements under the IWFA?
Conister Bank requires the maintenance of a Client Transaction Account that holds between 3% and 10% of the outstanding principal balance. This percentage is determined during the pre-lend audit. The purpose of this reserve is to cover potential shortfalls that may arise from defaults or buyback obligations.
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.
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