Specialist Lender Solutions
Funding for Non-Bank lenders across asset classes serving business and consumer markets.
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Senior and junior debt for growth
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Flexible to lending strategies
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Built-in risk resilience
Our Structured Finance Facilities provide a range of flexible financing options including senior and junior debt structures. Designed to meet the unique needs and goals of your business, supporting everything from cash flow management to project-specific financing.
Your business can effectively manage and optimise financial risks, protecting against market volatility and enhancing financial stability.
Gain access to crucial capital through structured finance solutions, empowering your business to pursue ambitious growth strategies, enter new markets, and innovate, without diluting ownership or compromising on financial health.
We provide solutions that foster stability, drive growth, and enhance adaptability in the ever-changing financial landscape.
Product comparison
Block |
RCF |
IWFA |
Mezzanine Finance |
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| Facility size | <£10m | <£10m | £10m - £100m | <£10m |
| Rate | Competitive | Competitive | Competitive | Risk‑adjusted mezzanine pricing (above senior, below equity) |
| Agreement term | Evergreen | 12 months + term out period | Matches borrowing base | 12‑month revolving period + committed term‑out/amortisation period |
| Underlying loan term/s | 3 - 84 months | 3 - 84 months | Matches borrowing base | 3–84 months |
| Repayment | Capital + Interest | Interest only | Matches underlying loan | Interest‑only during revolving phase; principal repaid via portfolio run‑off during term‑out |
| Security on agreements | Assign as security via a Block Charge | Debenture on company. Guarantee from Parent, Share Charge over SPV, SPA between Parent and SPV | Assign beneficial title with rights of legal title | Full security over SPV: debenture, share charge, assignment of loan receivables |
| Other mandatory security *1 | None | Repayment reserve | Cash Reserve | Repayment reserve, bank account control, cash sweep mechanics |
| Defaulting borrowing base remedied by | Replacement paper | Agreements are bought back at par value | Agreements are bought back at par value | Variable |
| Multiple funders | Yes | No, not to the bankruptcy remote SPV | No, not to the bankruptcy remote SPV | SPV only has one senior funder + one mezzanine funder |
| Appropriate structure | Corporates / SPV | Corporates/SPV | Corporates /SPV | SPV |
| Advance rate | 70-95% | 70-95% | 100% | Residual tranche beneath senior advance rate (mezz determined by remaining LTV) |
| Uses of facility | Regulated & Non-Regulated Loans HP, S&LB, etc | Regulated & Non-Regulated Loans HP, S&LB, etc | Regulated & Non-Regulated Loans HP, S&LB, etc |
Funding of regulated and non‑regulated loans: HP, leasing, S&LB, consumer/SME credit (subject to eligibility) |
| Reporting frequency | Monthly | Monthly | Monthly | Monthly |
| Audits | Quarterly | Quarterly | Quarterly | Quarterly |
| Pre-lend audit *2 | £2,000 to £11,700 + VAT+ disbursements | £10,700 - £35,000 + VAT + disbursements | £10,700 - £65,000 + VAT + disbursements | £15,800 – £16,800 + VAT + disbursements |
| Facility fee | 1% | 1% | 1% | 1% of facility limit |
| Annual / renewal fee | 0.25% - 0.50% / N/A | N/A / 0.50% | N/A / 0.50% | N/A / 0.50% |
| Increase fee (pro rata) | 1% | 1% | 1% | 1% on incremental uplift |
| Options Review | N/A | N/A | Yes | N/A |
| Early settlement discount | No | Yes | iro £35,000 + VAT + disbursements | Yes |
| Non-utilisation fee/commitment fee | N/A | iro 3% pa | up to 3% | iro 3% pa |
| Legal documentation *2 | iro £3,000 + VAT + Disbursements | iro £40,000 + VAT + Disbursements | iro £45,000 + VAT + Disbursements | Approx. £35,000 + VAT + disbursements |
| Legal due diligence *2 | FOC to low cost | iro £3,000 + VAT + disbursements | iro £3,000 + VAT + disbursements | Approx. £3,000 + VAT + disbursements |
| Timescale to implement *3 | 4 weeks plus | 8 weeks plus | 24 weeks plus | 12 weeks plus |
| Standby Servicer Agreement | No | TBC in prequalification | Yes | Required |
| Open Banking | Yes, or bank statements | Yes | Yes | Yes |
| Credit Criteria / Eligibility Criteria | Yes / No | No / Yes | No / Yes | Yes |
| Financial and non-financial covenants | Yes | Yes | Yes | Yes |
(iro = In the region of)
(foc = Free of Charge)
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*1: All products will require companies to undergo a formal credit assessment where additional security may be requested including personal and or corporate guarantees, subordinated loan agreements, etc. |
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*2: These are examples but costs will vary subject to the size and type of the proposal. |
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*3: The timescale is an estimate based on best endeavours with appropriate engagement from all parties. |
There are several external parties involved in the workflow which may delay the implementation timeline for reasons outside of our control.
FAQs
What are the costs and expenses associated with Revolving Credit Facility?
The Borrowers are responsible for pre-lend audit fees and legal fees. An arrangement fee of 1% of the facility is payable upon signing, with other fees discussed during the onboarding process.
What documentation is required for a Revolving Credit Facility?
The Borrowers must provide necessary legal documents, including AML/CDD identification and proof of address. A legal opinion confirming the Special Purpose Vehicle (SPV) documentation's compliance and enforceability is also required.
What is Block Discounting?
Block Discounting is a financial solution in which a finance company, like Conister Bank, buys the rights to the receivables from finance agreements held by the Borrower. This arrangement allows the borrower to access capital immediately while retaining the management of customer relationships and contracts. This type of financing is beneficial for businesses that require liquidity but wish to continue managing their customer interactions and servicing the original agreements
What documents are required to have a Block Discounting Facility?
Borrowers must submit Anti-Money Laundering (AML) and Customer Due Diligence (CDD) identification, proof of address, and additional relevant documentation to fulfill legal obligations. This adherence to regulatory and legal standards guarantees compliance.
What are the financial covenants in the IWFA?
In the Integrated Wholesale Funding Agreement (IWFA), financial covenants include the facility security ratio, tangible net worth, and interest cover. These covenants are established based on the borrower's historical and forecasted performance to ensure financial stability and compliance. Conister Bank actively monitors adherence to these covenants throughout the life of the Facility to manage risk and maintain financial health.
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.
Get in touch
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