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11-19-2012, 12:28 PM #1
- Join Date
- Sep 2012
- Posts
- 72
It looks like their entire purpose is really just to syndicate on advances and not share in the commissions.
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11-19-2012, 01:54 PM #2
not always a broker relationship
Actually if you evaluate the landscape of the overall Funders in the market you generally see four (4) makeups.
1) Funder has a credit line usually structured as a senior debit facility on the receivables purchased
2) Funder has a private equity structure which allows "balance sheet" booking
3) Funder sells prior to or post closing the rights and receivables to a secondary market buyer
4) Funder has a lead in a transaction and syndicates the contract with multiple participants
The syndication model today is allowing for much more aggressive underwriting i.e. high risk. when not under the auspicious of a credit line or private equity firm, who require a whole slew of stipulations and conditions on SIC Code, credit scores, etc..