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 | <£10m | <£10m | £10m - £100m |
| 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 is a Revolving Credit Facility?
A Revolving Credit Facility (RCF) is a financing solution that allows a Borrower or a Special Purpose Vehicle (SPV) to fund lending activities. It involves a single facility agreement with Conister Bank, utilising the borrower's own paperwork and systems for underlying agreements. In the case of an SPV structure, these agreements are transferred through a Sale Purchase Agreement (SPA). This setup facilitates continual access to funds, enabling borrowers to manage cash flow efficiently and maintain their operational systems.
What criteria is used to determine funding for a Revolving Credit Facility?
Funding is based on the eligible borrowing base, subject to adjustments for historic dilution factors like arrears and defaults, and the Facility's security cover.
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 are the costs involved with a Block Discounting Facility?
Costs include pre-lend audit fees, legal fees, and an arrangement fee of 1% of the facility upon signing the agreement. Costs vary based on the product lifecycle and company’s performance and are negotiated during the onboarding process.
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 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.