Realize Your Growth Potential with Lender Financing up to $20 Million
Boost your lending power with a tailored lender finance solution from Accord Financial. Our flexible credit facilities grow with your company’s success.
Lender finance: it takes a lender to know a lender
The last decade has brought tremendous change in the world of specialty finance. The uncertain economy, interrupted by the credit crisis, regulatory response, followed by unprecedented technological progress has created both challenges and opportunities. As the banks have failed to effectively serve finance companies, Accord steps in to help fill the gap.
When your lending business needs flexible capital to grow, who best understands what it takes to lend more effectively than the banks? The answer: Accord. As a specialty lender itself with nearly forty years of experience, Accord knows what it takes to succeed.
We approach lender financing with unique expertise developed over nearly four decades. We have unparalleled insight into the value of your most important asset – your loan portfolio. If you need to maximize liquidity by unlocking the value within your portfolio, call Accord today.
When opportunity knocks, open the door to Accord
Are you tired of bankers and old-school lenders telling you they don’t understand your business? Or maybe they do understand, they just don’t want to finance a company that makes loans that they wouldn’t make. Either way you’re out of luck. As a highly experienced specialty finance lender, Accord understands the unique financing needs of your business. Lender financing has been a cornerstone of our business for years.
Like many alternative lenders you have a terrific opportunity to fill a gap left by the banks. Your market is expanding and your portfolio is growing. You need more than just a loan, you need to partner with a creative company with deep lender to lender financing experience. It’s time to open the door to Accord.
We work hard to provide the optimal financing package to make sure you maximize your potential loan portfolio growth. A successful lender finance relationship starts with these elements:
- satisfactory portfolio of loans
- appropriate credit criteria related to the market you serve
- strong culture of regulatory compliance and credit review
- adequately capitalized balance sheet
- effective technology and operating systems
- complete and timely portfolio reporting.
As your presence in the market continues to build, the last thing you need is to turn away potential borrowers because you lack the funds to finance them. Solve this problem today; boost your lending power with lender financing from Accord.
Lender to lender financing: make our experience your advantage
In addition to securing the financing you need when you need it, take advantage of our added value – our highly experienced team has unique insight earned through many business cycles and lengthy experience in lending to finance companies. We understand your business model and the challenges you face. And with Accord, you always deal with decision-makers. We’re here to help with issues and ideas any time you need.
If now is the right time to secure a lender loan to support your growth, then now is the right time to call Accord for your financing needs. Get started today.
From factoring to consumer lending, our business is your business
If your core business centers around one of the following lending models, we can help you grow your loan portfolio:
- Automobile finance and leasing
- Factoring and asset-based lending
- Consumer lending
- Merchant cash advance
- Other specialty lending segments
We’re comfortable working with lenders across a wide range of alternative products and markets. If you have a history of successful underwriting, we’re ready to help take your business to the next level.
Get started with lender to lender financing from Accord
Working with Accord, you gain access to an experienced executive team with a unique lender to lender financing philosophy to help your company grow and prosper.
Our industry best practices, tailored due diligence and flexible loan programs enable you to:
- Derive maximum borrowing power from your portfolio assets; and
- Secure an asset-based lending facility designed to meet your specific needs.
Put the financial strength, experience and independent thinking of Accord to work for you, with lender to lender financing up to $20 million. Make our experience your advantage,
Lender Financing FAQ
Lender-to-lender financing is the process where a lender, such as Accord, provides an operating line of credit or term loan facility to traditional or fintech lenders engaged in consumer or commercial finance. These advances are secured by your portfolio of outstanding loans. We have 40 years’ experience in lender-to-lender finance and understand the unique financing needs of lenders.
Yes, not only do we provide lender-to-lender financing, but we also lend to companies within a broad range of industries.
By using lender-to-lender financing, you can leverage your capital and grow your business without diluting your equity. Additionally, working with a specialty lender like Accord for your lender-to-lender financing will provide you with a lender that truly understands your business needs.
When you use a lender-to-lender financing facility, your existing loan portfolio acts as collateral, allowing you to borrow against the eligible transactions within your loan portfolio. With access to a lender-to-lender loan facility, you will have additional funds to make more loans and grow your traditional or fintech loan portfolio.
Some of the most common financial structures used for lender finance include:
- Equity investment
- Lender-to-lender financing via term loans with minimum draws and structured payment arrangements
- Lender-to-lender operating lines of credit which revolve with your financing requirements
- Loan sales, participations or syndications through which you transfer all or part of your ownership interest in a group of loans
When it comes to lender finance options, raising equity is typically the most expensive form of capital, as you are selling an interest in your business on a permanent basis and giving up a share of all future earnings. One advantage of raising equity is that an increased equity base may help you in accessing lender financing in the form of lender-to-lender financing in the future.
When you use loan sales and participations as a source of lender financing, you are giving up a large portion of the revenue of the loans that you are selling. These lost revenues relate only to the life of the loan and may be offset by a premium paid by the buyer and a management fee that you may charge during the life of the loan.
Lender-to-lender financing is often the most inexpensive financing option for a traditional or fintech lender. With a lender-to-lender financing facility, you pay a fixed interest rate and do not give up a share of your revenue. Lender-to-lender financing structured as an operating line of credit is very flexible because the amount of the loan fluctuates with changes in your portfolio of traditional or fintech loans. You only pay interest on your lender-to-lender finance facility for funds that you borrow to deploy in your portfolio. A lender-to-lender facility allows you to maintain control and ownership of all the loans you originate.
As a finance company or fintech lender seeking lender financing, you have multiple options, including:
- Direct investment from existing shareholders, friends, family or new shareholders
- Lender finance capital provided by private lenders
- Capital provided by hedge funds and or other investment funds seeking high yield returns
- Lender-to-lender financing through loans from banks or non-bank financial institutions
When you use lender-to-lender financing, you leverage the capital in your business and grow your loan portfolio without diluting your equity. In working with a specialty lender, like Accord, that has experience providing lender-to-lender financing to a wide variety of finance companies—including fintech lenders—you will benefit from working with a lender that truly understands the lender finance business.
A lender with an established lender-to-lender finance program will provide you with a stable and reliable source of capital while reducing the complications that arise from borrowing funds from other sources, such as friends and family or hedge funds, whose objectives may differ from yours.
Through our lender-to-lender finance program, we provide financing to both commercial lenders and consumer lenders. We work with companies whose focus is in the non-prime or subprime lending space and offer lender-to-lender financing to a variety of sectors, including:
- factoring companies
- merchant cash advance companies
- auto financing & auto leasing
- small business loans
- short-term personal loans
- fintech lenders
Structuring your lender-to lender finance facility as a revolving line of credit provides flexibility in that you only draw funds and pay interest when the funds are deployed within your portfolio. By comparison, with lender-to-lender financing structured as a term loan, you pay interest on the loan even if you have not deployed the funds.
Lender-to-lender financing rates are based on the level of risk, the financial performance of your lending business (factoring, merchant cash advance, auto financing, small business loans, personal loans and fintech lenders) and other conditions of the lender-to-lender facility. Rates may vary from one lender-to-lender financing facility to another.
It is important for you to find a lender that is the right fit for your lender-to-lender financing needs. Some key points to consider when selecting a lender to provide you with a lender-to-lender financing facility are:
- Does the lender have an established track record in the lender-to-lender financing space?
- Does the lender understand traditional and fintech lending?
- Does the lender have the capacity to increase your lender-to-lender financing facility and keep up with your growth?
- Will the structure of the lender-to-lender loan facility allow you to access an adequate amount of leverage?
- Does the lender have a stable source of funding for their own business?
- Do you have direct access to deal with senior management and decision makers?
- Can the lender supply you with positive references from other traditional or fintech lenders that they have provided lender-to-lender financing to?