Specialist Lender Solutions
Our range of products are adapted for specialist lender, providing funding solutions to enhance operational stability and foster future growth.
- Flexible Financing Options
- Bespoke Facilities
- Capital and Growth Support
Our Structured Finance Facilities provide a range of flexible financing options 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 |
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| Facility size | <£9m | <9m | £9m - £50m+ |
| Rate | Competitive | Competitive | Competitive |
| Agreement term | Evergreen | 12 months + term out period | Matches borrowing base |
| Underlying loan term/s | 3 - 84 months | 3 - 84 months | Matches borrowing base |
| Repayment | Capital + Interest | Interest only | Matches underlying loan |
| 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 |
| Other mandatory security *1 | None | Repayment reserve | Cash Reserve |
| Defaulting borrowing base remedied by | Replacement paper | Agreements are bought back at par value | Agreements are bought back at par value |
| Multiple funders | Yes | No, not to the bankruptcy remote SPV | No, not to the bankruptcy remote SPV |
| Appropriate structure | Corporates / SPV | Corporates/SPV | Corporates /SPV |
| Advance rate | 70-95% | 70-95% | 100% |
| 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 |
| Reporting frequency | Monthly | Monthly | Monthly |
| Audits | 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 |
| Facility fee | 1% | 1% | 1% |
| Annual / renewal fee | 0.25% - 0.50% / N/A | N/A / 0.50% | N/A / 0.50% |
| Increase fee (pro rata) | 1% | 1% | 1% |
| Options Review | N/A | N/A | Yes |
| Early settlement discount | No | Yes | iro £35,000 + VAT + disbursements |
| Non-utilisation fee/commitment fee | N/A | iro 3% pa | up to 3% |
| Legal documentation *2 | iro £3,000 + VAT + Disbursements | iro £40,000 + VAT + Disbursements | iro £45,000 + VAT + Disbursements |
| Legal due diligence *2 | FOC to low cost | iro £3,000 + VAT + disbursements | iro £3,000 + VAT + disbursements |
| Timescale to implement *3 | 4 weeks plus | 8 weeks plus | 24 weeks plus |
| Standby Servicer Agreement | No | TBC in prequalification | Yes |
| Open Banking | Yes, or bank statements | Yes | Yes |
| Credit Criteria / Eligibility Criteria | Yes / No | No / Yes | No / Yes |
| Financial and non-financial covenants | 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 financial covenants are involved in a Revolving Credit Facility?
Financial covenants, such as facility security ratio, tangible net worth and interest cover, are set at the outset based on historical and forecasted performance. Conister Bank monitors compliance with these covenants throughout the Facility's life.
What are the audit and monitoring processes for the Revolving Credit Facility?
Conister Bank conducts a pre-lend audit during onboarding, followed by quarterly audits (both remote and on-site) focusing on various aspects including regulatory compliance and financial performance. Monthly management information and other reports are used for ongoing monitoring.
What audits are conducted for a Block Discounting Facility?
A pre-lend audit is conducted initially, followed by quarterly audits, which may include both remote and on-site visits. These audits review financial performance, regulatory compliance, customer journey, and agreement details.
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 is the buyback obligation in the IWFA?
Under the terms of the IWFA, the borrower is required to buy back any loans that reach 90 days in arrears or fail to meet the agreed-upon Eligibility Criteria.
How is security managed in the IWFA?
In an Integrated Wholesale Funding Agreement (IWFA), Conister Bank manages security by taking a debenture over the Special Purpose Vehicle (SPV), imposing a share charge over its assets, and securing the arrangement through the IWFA. Additionally, a collection account is established for handling customer receipts, with Conister Bank either serving as a signatory or directly owning the account. This approach ensures that the agreements are well-secured and that Conister Bank maintains control over the flow of funds.