Loans for startups or growth-stage companies that do not have positive cash flows or significant assets to use as collateral.
Warehouse Facility
Revolving financing to fund originations by pledging the underlying receivables as collateral until they can be sold or refinanced.
Forward Flow Facility
A type of financing arrangement that allows a company to sell its future accounts receivables to an investor in exchange for upfront capital.
Asset Backed Facility
A form of financing that is secured by certain assets owned by the borrower. The assets act as collateral that the borrower pledges to the lender in order to obtain financing.
Mezzanine Facility
When raising a debt facility, sometimes, different lenders take senior and junior positions in the facility based on their risk/return appetite. The junior position above equity is a mezzanine facility.
Non-Dilutive Financing
Non-dilutive financing refers to methods of raising capital that do not require giving up ownership or control of a company. It’s more expensive than an asset backed facility.
Recurring Revenue Facility
A recurring revenue loan is a type of financing option for businesses that rely on regular, ongoing revenue from subscription, membership, or service-based business models.
Securitization
Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security.
Corporate Loan
A corporate loan is a debt raised by the company for normal operations. Generally, a corporate loan has the first lien on the company.