UCC Filings Explained
A UCC filing, also known as a UCC financing statement, is a legal form that creditors file to give notice that they […]
Special Purpose Vehicles Explained
A special purpose vehicle (SPV) is a legal entity created by a parent company to isolate financial risk. Companies typically use SPVs […]
What is backup servicing?
Backup servicing refers to when a backup servicer takes over the servicing responsibilities for a pool of loans or mortgages if the […]
What is a draw request?
A draw request, also known as a disbursement request or loan advance request, is a formal request made by a borrower to […]
What is Undrawn Capital Fee?
Unused or undrawn capital fees, sometimes called commitment fees, are fees charged by lenders to borrowers on the undrawn or unused portion […]
Warrants in a Debt Facility Explained
While equity financing from VCs grabs the headlines, debt financing plays an equally important role in funding growth. Debt facilities help startups […]
Parent Guaranty Explained
A parent guaranty is a legal agreement that is often required when a company seeks outside financing or raises funds from investors. […]
What are concentration limits in a Warehouse Facility?
In secured warehouse lending, managing risk exposure to an individual issuer is critical, especially as facility sizes scale. Lenders establish customized concentration […]
What is a mezzanine facility?
When raising a debt facility, sometimes, different lenders take senior and junior positions in the facility based on their risk/return appetite. Banks […]
Right of First Refusal (ROFR) Explained
Right of first refusal (ROFR) is a contractual clause that gives a party the first option to purchase or finance an asset […]
What are the common terms in a Warehouse Facility?
Understanding a Warehouse Facility Term Sheet A warehouse facility term sheet outlines the key terms and conditions for a proposed warehouse line […]