What is a payment waterfall?
A payment waterfall refers to the priority order in which interest, principal, fees and other payments are made from the cash flows […]
Understanding covenants in debt facilities
Debt facilities like loans and credit lines often come with strings attached in the form of covenants. Covenants are promises made by […]
What is a custodian?
In large commercial debt facilities, custodians play a critical behind-the-scenes role in keeping documentation and collateral secure. While retail bank customers may […]
Warehouse Facility vs Venture Debt
As CEOs and CFOs evaluate financing options to support their high-growth companies, two instruments they may consider are warehouse facilities and venture […]
Warehouse Facility Explained
If your fintech, financial services, or online lending company is looking to scale up operations and originate more loans or receivables, you […]
When is the right time to raise Venture Debt?
As a startup CEO or CFO, one of the most important financial decisions you will make is whether or not to take […]
What is a Forward Flow Agreement?
A forward flow agreement, also known as a forward flow facility, is a type of financing arrangement that allows a company to […]
What is structured finance?
Structured finance refers to a sector of finance that involves bundling cash-flow producing financial assets and repackaging them into securities that can […]
What is a line of credit?
A line of credit is a type of financing that allows startups to access capital as needed up to a set limit. […]
What is a Borrowing Base Certificate?
A borrowing base certificate is a report that borrowers send to their lenders detailing the assets that are eligible to collateralize a […]
Litigation Finance Explained
Litigation finance refers to funding provided by third party investors to plaintiffs involved in lawsuits, legal claims, or anticipated legal disputes. The […]
What are the common Stress Testing Scenarios?
Stress Testing Scenarios While the above portfolio metrics analyze historical performance, lenders also leverage stress testing which models hypothetical economic scenarios to […]