What is a Trustee?
A trustee plays a critical role in a consumer loan debt warehouse facility. As the independent third party oversight on the facility, […]
What is a DACA Account? (Deposit Account Control Agreement)
A Deposit Account Control Agreement (DACA) is a legal agreement that gives a lender some control over a borrower’s bank account. DACAs […]
What are Protective Provisions for Warehouse Facilities?
A protective provision, also known as a veto right, is a clause that gives investors a level of control or provides safeguards […]
What is a Structuring Fee?
A structuring fee is an upfront fee charged by lenders when putting together a new debt warehouse facility. It is intended to […]
What is Tangible Net Worth?
Tangible net worth (TNW) is an important financial metric that lenders use to assess a company’s financial health and ability to repay […]
What is an Event of Default?
An event of default (EOD) is a breach of the terms of a debt facility or loan agreement by the borrower. EOD […]
What is Working Capital Financing?
Working capital refers to a company’s liquid assets – cash, accounts receivable, inventory, and other assets that can be quickly converted to […]
What is the Difference Between Committed Amount and Total Facility Amount?
When a company takes on debt financing, whether from a bank or other lending institution, the loan agreement contains terminology that specifies […]
What is Securitization?
Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security. […]
What is Non-Dilutive Financing?
Non-dilutive financing refers to methods of raising capital that do not require giving up ownership or control of a company. As opposed […]
What is Credit Tranching in a Securitization?
Securitization is the process of pooling various types of assets, like mortgages, auto loans, or credit card debt, into a financial product […]
What is an Asset Backed Facility?
An asset backed debt facility (ABDF) is a form of financing that is secured by certain assets owned by the borrower. The […]