Fintech lenders need constant capital to fund loans but, unlike banks, have no deposits to draw on. So growth gets financed with equity when venture debt or a credit line would be the right fit. We get a fintech lender-ready, then bring in our capital markets partner to run the private debt raise start to finish.
WHY IT'S HARD
01.
Lenders' implied risk is much higher for companies that haven't proven themselves across a full credit cycle.
02.
Underwriting, servicing, and reporting infrastructure that hasn't yet been built to lender standards.
03.
Most credit funds deploy larger amounts for less effort and lower perceived risk, so small raises get passed over.
04.
No in-house rolodex of private lenders, and no one to negotiate terms on favorable footing.
HOW IT WORKS
01 — BUILD
Underwriting and risk modeling, servicing and collections, and receivable reporting brought up to the standard a lender expects.
02 — RAISE
Tear sheet and data room, targeted outreach to private credit funds, family offices, and alternative lenders, through diligence and legal documentation.
03 — SUPPORT
Amendments, reporting, and upsize or refinance support for the life of the facility, not just to signing.
Find out whether your fintech is lender-ready, and what it would take to get there.